Texas Woman Wants to Trade In $78K Car She Owes $57K On. Then It’s Appraised at $40K

“Pay it off and then drive it until the wheels fall off."

Photo by: mydebtconfession & Blogging Guide

Nina Hernandez

By: Nina Hernandez

Oct 25, 2025 at 8:00am ET

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A Texas woman is looking for advice on whether to refinance the car loan she owes $57,000 on. She’s reportedly upside down $17,000 on the loan.

TikTok user @mydebtconfession is dedicated to the debt repayment journey of a woman and her husband.

The woman posted a video on Oct. 6 asking for advice on this particular situation. “This weekend I had my vehicle appraised,” she says to start the video. “And so now I don’t know what I’m going to do.”

Texas Woman’s $78K Vehicle Is Now Worth $40K

The woman explains that she and her husband were in different financial circumstances when she originally purchased the vehicle for $78,000. Her monthly payment is $1,100 and she still owes $57,000 on the loan.

Since the couple pivoted towards debt repayment, that $1,100 payment has become a burden. Unfortunately, when she went into the dealership to discuss her trade-in options, she learned that the vehicle is now only worth $40,000. Her dreams of cutting her payment in half went up in smoke.

“I almost flipped over,” she says. “I’m shocked, but I’m not. Because I know things depreciate so quickly. And so now, I don’t know what I’m going to do. I guess I’m stuck with an $1,100 payment. Maybe I’ll pay on it a little more at this rate and then eventually refinance it. Maybe I could refinance it now, but I feel like that’s just adding another year, and my payments are still going to be around $800.”

Viewers React to the Underwater Car Loan Situation

In the comments section, viewers offered plenty of constructive criticism on the couple’s past financial decisions.

“LOL OMG ARE YOU SERIOUS, LADY?” asked one incredulous viewer.

One person said she and her husband are also in the process of buying a home. “An $1,100 car payment while renting is wild to me,” they wrote. The creator replied, “I was just thinking about that last night. I should have a home and a used vehicle.”

Several people did offer actual advice on the car loan refinancing question. “Pay it off and then drive it until the wheels fall off,” one person advised. “New cars are such a waste of money.”

What Should She Do With Her Car Loan?

Many commenters were wary of recommending refinancing in this situation because the process is much more difficult when you have negative equity in your loan. When you refinance, you extend the length of your loan in exchange for a lower interest rate and reduced monthly payments. But that comes along with a few caveats.

The TikToker is right to be concerned that doing so could cause her to actually pay more in interest over the life of the loan. Not only that, but lenders are going to be less flexible in the terms of the next deal. That’s likely why the woman’s refinanced payments would only go down to about $800.

So what should she do? The Federal Trade Commission’s Consumer Advice division recommends people who are upside down in the car loans to make extra payments to get their loan in line with the value of the car. The FTC says she can also try to sell her vehicle privately to maximize her return.

If she does choose to go through a dealership in the short term, the FTC urges sellers in her situation to be clear on how it will handle the negative equity by carefully reading the terms and to negotiate for the shortest timeframe possible on the loan—particularly if the negative equity is being rolled into the new loan.

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“The longer your loan term, the longer it will take to reach positive equity in your new car—and the more you’ll pay in interest,” the FTC notes.

Motor1 contacted @mydebtconfession via TikTok comment and email for comment. We’ll update this if she responds.