A 70 year old man and his 64 year old SO take their aging van to a dealer to get repairs. While waiting, their eyes catch on a new Dodge Journey SUV for about 20k sticker.
They both get Social Security - that's their only source of income. He gets 1000, she gets 750.
They are upside down on the vehicle being repaired. They get $1,500 trade allowance but loan payoff of $5,800, so they roll the $3,,300 into new loan. And get sold a $3,600 service contract. Payments are $700 per month. So of their $1750 income, 700 will go to the new vehicle. And of course rent of 520 so that leaves them about $530 for everything else.
Did I mention his financial statements shown to the dealer show 2 bank accounts. First has $24 positive balance and the other is overdrawn by about $150. So they have less than zero money.
Their loan is for 26.5k at over 20% APR. This works for 1 month.
Then she dies. Now he is stuck with the loan and now only $1,000 income and $1,200 between vehicle and the rent.
Can there be a worse story?