Q: A few months ago I purchased a car for $28,000. Now I'm regretting my decision. I was so excited about this car that I jumped into a deal that I can't afford. I have been to several dealers to trade the car in knowing that I would have negative equity. Every dealer told me it couldn't be done, that I am “upside-down.” How do I sell this car and get out from under? - R.T., via e-mail



A: There is very little you can do. When you drive a new car off the lot, it depreciates dramatically. The problem is that if you put little or no money down, then you are immediately “upside-down.” You didn't mention it in your letter, but I'm assuming you financed the car for four, five or even six years, which further exacerbates your situation. You will have to swallow hard and maybe pick up a part-time job to make the car payments.


Q: I want to throw in my two cents about viaticals. I know you have addressed them before in your column and you are on point. Viaticals and life settlements are not an investment for the faint of heart. We are an institutionally funded purchaser of life settlements and own hundreds of millions of dollars of these policies. I just don't want to see any small investors hurt in this marketplace. - Reader, via e-mail



A: Thank you very much. Everything you say is true. Investing in viaticals is one that has to be looked at carefully. Professionals like yourself know this, and, oftentimes, the amateur investor is misled to his sorrow.


Q: We recently had our business fail. We owe thousands of dollars to the IRS and Department of Labor. I don't see an end . I refinanced my home to try and keep my business afloat and now I'm having trouble paying on that. Because of the refinance we do not have enough equity in our home to try and reduce this debt. Our interest rate is 11 percent and I really don't want to start all over again. Is there any way to stay afloat? - Reader, via e-mail



A: I know you don't want to start over, but it seems that reducing or getting out from all these obligations ought to add to your life.

An 11 percent mortgage rate under any circumstances is incredibly high, and, given your finances, it is highly unlikely you will be able to refinance. I would seriously consider disposing of your home and then renting to get back on track.