I am paying $850 a month on a car note, this is money I can use to pay my student loans, bills etc. How can I get out of this loan, return the car without further damaging my credit? I bought the car in November 2006. Please advise.

Thank you!:

Sell the car! If you default on the loan, it WILL affect your credit. Your best bet is just selling it to someone who will take over the payments. If you sell for cash you probably will not be able to cover the balance of the loan. So you will still owe that balance.

Welcome to the real world. You signed a contract and you must honor it, one way or the other; or the lender will 'dishonor' you. Is there a co-signer? You must either pay off the note or continue making monthly installments. One way to pay off is to sell the car; if the car is not worth the pay off, you could subsidize the purchaser by handling a part of the pay off on your own, say $2,000. If you can't sell, the next best option is to work more hours to supplement your income. If the car is repossessed, the lender will sell it for half what it is worth, and sue you for the difference. Have you gone back to the dealership and asked whether they can help you 'trade down'?