The bad credit broken-down car blues

Dear Debt Adviser,
I need $600 for car repairs. I tried both my current credit union and my old one, which held the original note on my car. I paid off the car note so I have it as collateral. However, my credit is worse than bad. I was turned down due to charge-offs and collection accounts.

To make my situation even more difficult, my primary source of income is Social Security disability. I am out of options, save writing this to you. So, hit me with what you got and show me what I already know ... that there is a reason you're on that side ANSWERING and I am on this side WRITING! I am looking forward to your response. Thanks.
-- JFS

Dear JFS,
So let me get this straight: You have a history of not paying your bills. You have an income source that is not attachable by a creditor. And you want me to tell you how to get people to give you more money!

All right, I like a challenge.

Your dilemma sounds pretty bad, but let's see if I can hit you with something to make the situation better.

On the premise that a small pile of money is easier to borrow than a big one, start by shopping around for a less-expensive way to repair your car. Ask area mechanics if they do work on the side after hours for less than your estimate, and check with other repair shops or tap a friend who knows enough about cars to fix it.

Since you can't get the money from credit unions, you could ask a family member or a good friend for a loan. If one person cannot loan you the total sum, perhaps multiple people will loan you a part of what you need. Let all parties you are borrowing from know that you're borrowing a larger total sum. You will also want to come up with the terms for repayment. This is important to do, especially with friends or family. Not paying them back could cause a loss of respect from them.

Then again, based on your past performance, a stranger might be a better alternative. There are companies that specialize in auto loans for people with bad credit. One source would be to look at the Problem Credit page on Bankrate.com.

Another option you could explore is trading your car in on a good, and preferably less-expensive used car. Sales people will do most anything for a new sale, and with them pulling for you, maybe a loan on a used car that works would be possible, where a loan on an old one that doesn't work, is not.

I can't help but ask: Do you really need to get the car fixed right away, or even at all? If you have public transportation where you live, it is not a bad way to get around. Most of the time the routes are not too complicated and transfers aren't bad either. You might have one advantage: Being on Social Security disability could mean you are entitled to a personal pickup. Check with your city's transportation department for more information about the process for pickups or to get more information on the bus or rail system.

To avoid this problem in the future, come up with a spending and savings plan. This can be done even with a limited income. Find a way to save some money each month, even if it is a small amount. Every little bit helps. The money you save now can be used to pay back the borrowed money, or it can be saved up to pay for future car repairs.

Good luck!

The Debt Adviser, Steve Bucci, is the president of Consumer Credit Counseling Service of Southern New England. Visit CCCS for additional debt advice or click here to ask a debt question.