ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Things I will Never do Twice= Pink Slip Loan

Updated on October 12, 2014

Don't cut off your fingers to spite your own hand!

I have a '00 Toyota Echo worth $25,000. If you are scratching your head on that one I don't blame you. It originally retailed at approximately $15,000. Let me clarify, its worth 25K to ME. How's that you ask? Have you ever done something stupid and later wished you could have foreseen the future and stopped yourself? This is one of those examples.

Are you throwing money away?
Are you throwing money away?

Pink slip loans = Robbing Peter to pay Paul

My (ex) husband and I sold the first home we had ever bought at the end of 2000, and were able to pay off my brand new Echo that we had financed earlier in the year. It was an exhilarating feeling to write that $15K check to the bank. I had never owned a brand new car and now it was all mine. My husband and I and our one child then moved out of the area and bought another home. It was more expensive than our first home but still very modest. The trouble started when my husband couldn't find a new job in our new area. He was living part time with my parents so he could work and commuting home to me on the weekends. Well, this just went on and on. He did finally get a new job a few months later, but for less pay, and I ended up going on maternity leave from my job a few months after we had moved in. Needless to say, we soon found ourselves up to our armpits in heavy bills, and started being late on the mortgage. The stress was enormous. I was worried nonstop about what was going to happen next.

Then I got the bright idea of taking a loan against the car to have money to pay the mortgage. Your basic rob Peter to pay Paul idea. Being that the car was still brand new and I had just paid it off, I was able to get a loan for $10,000. Seemed like a good idea at the time, but it was stupid. We lost the house anyway over the next year. Even though we put it up for sale immediately it took 10 months to sell because I had four buyers fall out of escrow. If it weren't for that factor the plan may have worked, but I doubt it. We took the last bit of money we had left and moved into a little apartment with our two kids. It wasn't long before other elements of our bad marriage showed up and we ended up getting divorced a few months after losing the house.

Stress Bonanza and Lessons Learned

To recap, I moved away from my family, had a baby, mortgaged my car, lost my house anyway, and divorced my husband. On top of that I got fired due to a jealous boss, and started my own mobile grooming business all in one year! Whew! I kept the car when I left my husband, so I got the pleasure of paying it off again over the next 60 months. I literally paid for my car twice. Thus, to me it is worth $25,000. I will of course never be able to sell it for what its "worth", so I plan on driving it till it drops dead. It currently has about 165,000 miles on it, and I change its oil on schedule and keep it maintained. Boy am I glad I bought a Toyota!

If you get anything out of this hub it should be this. Don't take loans against your cars to pay your mortgage. If you are in dire financial trouble, getting into more debt is not the answer. If you lose the house at least you won't have a car payment. You wouldn't want to get so far down you lose the car too, cause you could sleep in the car if necessary. Hmmm. I wonder what would happen if you were sleeping in the car and they came to repo it?


    0 of 8192 characters used
    Post Comment
    • profile image

      lost in my space 

      6 years ago

      Good advice, I commend u, I had all the same but can't find a job to save my life and I have a chronically ill child. Lost

    • Mrs. Obvious profile imageAUTHOR

      Willow Mattox 

      8 years ago from Northern California

      Thanks for the sentiment! I did finally pay off that car in 2008. Man it felt good to "own" it once and for all. P.S. I got married again in 2006 to a neat guy, and bought another house 2 years after that. Things did get better, and thanks to my own advice, I have never mortgaged another car yet!

    • R Pseudomen profile image

      Robert Lee 

      8 years ago from Canada

      Sad story, sadder in the middle. Great advice though. I hope things work out well for you.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)