<prompt> Human: Hi pf,I posted here about 7 months ago when my troubles began, and since then some things have gotten better while others have gotten...worse. Overall, I am most certainly in the middle of a financial crisis. Im separating from my husband and trying to cut down on bills.Here is a break down of my expenses.Net monthly income: 1985Monthly BillsDebts:Rent, 850 just ended an 1100month lease and found the cheapest one bedroom for me and my son I could find in my area.Internet, 70ElectricGas, 150 hoping to cut this down once Im in my new place.Phones, 170 This is for both of our phones, but I should be able to cancel the contract and get a cheaper prepaid for myself next month.Food, 250Netflix, 8Car Payment, 255 11.3k total remaining balanceStudent Loans, 65 Total balance is like 35k, I finally got an IBR using my income aloneRenters Insurance, 10.75Credit Cards These have all gone to collections:Target, 1000Kohls, 250Amazon, 700Synchrony, 1000Misc:90 in unpaid taxes350 unpaid personal loan Savings:0 sad, I knowI also am the cosigner on my husbands car which has a loan balance of 10k. I just found out this week that he is in default on the loan and 650 must be paid to correct the situation by May 1st. I should be getting a 750 security deposit back from my old apartment once I move out next weekend.I dont know what to do. Use the deposit to pay the loan and avoid repossession, or just take the hit and try to pay down some of my own bills? My credit is already in ruins, and I dont know if I can even take the car from him if I pay it.Ive been in financial grid-lock for so long now he didnt help me with any bills while we were together, I havent been able to do much about my situation. Im proud of myself for at least finding an apartment that I can afford by myself, that was a huge first step for me. Now I need help sorting out the rest...  <response>: I know a few people responded and advised not to pay your husbands car payment. Before doing that I think you need to understand the scope of your decision. Lets assume the car gets repossessed. Most likely, however there is a small chance this may not hold true depending on the state and who financed it, the vehicle will be sold at a public auction such as Adesa. These are generally dealer only auctions and the car will typically be sold for rough wholesale value. This is due to the large majority of auctions not allowing anything but visual inspections prior to sale. Since the mechanical condition is relatively unknown it can be hard to sell a car for much more than the rough wholesale value. Once the car is sold, the signers on the loan are responsible for the remaining balance plus any repossession, transport, and auction fees. This will usually add 500- 1000 to the loan balance. As others have pointed out, it will have a significant negative impact on your credit. However the potentially bigger issue is rectifying the remaining loan balance. You and your husband will most likely be contacted by a Recovery department post sale to workout arrangements for the remaining balance. If a plan for repayment cannot be agreed upon, there is a possibility litigation will be initiated. If that occurs there is a chance your wages would be garnished. I apologize for all the ifs, maybes, and its possibles but situations like this are heavily influenced by the customers situation and the lenders processes and policies. Now how do you potentially rectify the car issue? First someone needs to call the lender. I know its not fun or easy, but ignoring them all but guarantees a worst case scenario. Find out if they do loan workouts or modifications on car loans. This would apply for your car loan as well. Also ask what arrangements they can offer. If an arrangement is agreed upon, make sure to keep it. The last thing is to see if they will negotiate the balance. Some lenders will allow you to settle for the value of the car and forgive the remainder of the loan. The question of course is where does your husband get the money to do this? He could sell the car, trade it in, or get a loan from another lender for the settlement amount. If a settlement is completed and the forgiveness amount is over 599 the IRS most likely will consider the forgiveness amount as taxable income. Additionally a settlement will probably have a negative impact on your credit, but not to the level a repossession would.Hope that helps and if you want more info related to the credit cards and other debts let me know. 