So I assume most people have made a big financial mistake once or twice (Heck even MMM did a full post on his - although his wasn't this dumb), so here is mine:
5 years ago this April, I cosigned on the loan for a quad. I was in the throws of a new/drunk/dumb/you're an idiot love, and agreed to cosign on manfriend's daughter's boyfriend's loan* (are you confused yet?). Lets call this boyfriend "Doug". While the loan would have been paid off this April, IF Doug wasn't a complete financial numskull, it currently has a balance of $5,600 with a 24.99% interest rate. The quad is worth about $2k and Doug still retains posession.
Because Doug hadn't been making the payments on time, in full, or sometimes at all, the interest rate shot up from 12% to 24.99%. My credit score shot down to somewhere in the 600s (and is now back up to 720ish). In August, 2011, I began making the payments myself (and trying to collect the monthly payment from Doug). I pay $275/monthly (the minimum being $180ish?) which should have it paid off in 30 months, and try and collect $125 bi-weekly from Doug. Since it has been paid on time for 6 months now, the oh-so-generous HSBC is willing to give me a 19.99% interest rate now (thanks guys!).
My question: Should I get a lower interest loan at a bank or credit union to payoff the balance owed to HSBC so I at least have a better interest rate than 19.99% and then continue trying to collect from Doug even though I will have no legal ramifications to do so because I alone will be responsible for the new loan? If I do this, I do NOT intend to take posession of the quad for multiple reasons, so assume this is not an option.
I am aware that I will end up taking a loss in this situation, I am simply looking for ways to minimize the financial loss & the emotional damage to myself and my family.
Any thoughts/suggestions are much appreciated :)
*Disclaimer: I know that this is completely fucking stupid, and the worst part is I knew it was completely fucking stupid while I was doing it.