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Help please

HI ,

I bought a car on finance and the balance at the moment is 16000 the negative equity is around 2.500£ . Im splitting up and getting 10000 as my ex partner is buying me out the house . I want to buy my own place but having to pay the car for 350 pounds every month reduced my chances of borrowing. I dont know what to do because I dont want to rent a house . Should I give the car back ? Can someone give me some advice, as I feel lost at the moment.
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