Would You Rather Lose Your Home Or Your Car?
Over at AllFinancialMatters JLP is discussing a recent Wall Street Journal article about the higher rate of people falling behind on their car loans.
If you are a homeowner who is falling behind on your home and your car, let your car go. Stop making payments, let it get repossessed, and throw all of that car payment money towards keeping your home out of foreclosure. Often times we see homeowners who are about to lose thier house making sure they keep their $500+ car payment current.
Its better to deal with a deficiency from a repossessed car then it is to deal with a foreclosure.
Bookmark: 
The latest government bail out proposal reminds me a bit of Seinfeld. It is expected that the President will announce that the government has struck deals with some of the larger lending institutions where they will freeze the teaser rates *on some* of their subprime mortgage loans. Not everyone with an ARM that is about to rest will have their low introductory rate frozen for the next 5 years though.
