I want to get a cheaper car, but the loan is more than the value of the vehicle. What can I do?

I bought a 2004 Blazer with bad credit, so I have high interest. It's a six year loan with five to go. I have made payments on time. I've been accepted to grad school and want to get a cheaper car (my son is selling me his 00 Honda for $1500 below blue book price). The value of the Blazer is less than the loan. How do I finagle this so I can end up with an affordable car during grad school?

I want to get a cheaper car, but the loan is more than the value of the vehicle. What can I do?

Tell your lender you are going to sell this car. Go to www.edmunds.com to find out what it is worth in your area. Go take out a personal loan for the difference between what you can sell it for, and what you OWE on it. This is the only way to get clear title.

How can you afford to go to Grad School when you cant even pay the bills you have now? Let me guess...U are going to just Go even Further in debt with student loans!

You REALLY need to get on a budget, start living on less than you earn, and quit borrowing money to buy crap you cant afford! If you have to borrow to get it, you cant afford it! Its really that simple!

Go get the book 'The Total Money makeover' by Dave Ramsey. Check out his radio show as well. He has dedicated his life to helping people find thier way out of messes like the ones you have created.

I am serious about this though...DO NOT borrow money to pay for Grad School. Most of the time you NEVER earn what the counselors tell you that you will earn after you get a graduate degree. PLUS the last thing you need is another mountain of debt to haunt you for a decade. My sister is Bi-Lingual with a Masters in International Business from THUNDERBIRD University and she could not find a job that paid more than teaching high school with a masters...But it cost 60,000 to get that masters...Debt Free is the way to go...

P.S. You are paying cash for the Honda right??? You are not Borrowing MORE money on a car?!?!