After my divorce I ended up with a truck $7K underwater. Here are the best ways to manage your debt

Core Insights - Financial stability can be significantly impacted during a divorce, especially when trying to maintain a similar lifestyle without the former partner's income [1] - The division of assets, particularly in cases of negative equity on loans, can complicate future financial planning [2] Group 1: Financial Management Strategies - Engaging with lenders can provide alternatives to repossession, as they may be willing to discuss options if the loan is significantly underwater [4] - Auto loans are secured by the vehicle, meaning lenders can pursue the remaining balance even after repossession, making it unlikely they will reduce the balance unless the borrower is genuinely unable to pay [5] - Selling or trading in a vehicle with negative equity is a potential solution, but rolling the debt into a new loan can exacerbate financial issues [6][7] Group 2: Consequences of Vehicle Surrender - Voluntary surrender of a vehicle may seem responsible, but it often does not yield benefits, as the lender will auction the vehicle for less than a private sale and add extra fees [8] - Borrowers remain liable for the remaining loan balance after surrender, and this action can negatively impact credit scores, making future borrowing more expensive [8]