I Want To Eliminate My Debt But It Doesnt Inclde Credit Cards. I Have A Defaulted Student Loan & Some Other St?
March 25th, 2009 | 
Author: uff. Are there any debt colsolidation companies that can help me.
A defaulted student loan cannot be "consolidated" with other debt.
Here's what to do about the student loan.
You are getting notices in the mail, no doubt. Call the toll-free number on the notice and find out who is handling your student loan. Then, call that company and talk to someone about getting the loan back on track. This is called "rehabilitation." It is fairly easy to do.
Keep a few things in mind though: the individual that you speak to is a collector. His salary is commissioned, based on how much he collects. So he will press you to make a large lump-sum payment. He will say "how much can you pay? I'm looking for $1500 to start? Can you do that? No? How about $1000? Can you come up with $500." etc.
Just play along. If you don't have it, just say, "No, sorry, all I can do is $50 a month" (or whatever).
Before you call, go over your budget and make sure you are committing to a reasonable amount for a monthly payment. This payment will be set up on an auto-draft from your checking account.
Here's the great news: after you make 9 consecutive, on-time payments, your loan is "cured." Fees and penalties are removed. The loan is then moved from the collection group to a lender who handles it just like any other student loan in repayment.
If you were to want to return to school, you would be eligible for additional borrowing.
Also, negative reporting to the credit bureau is removed.
It is really important to address the issue of the student loan. It has been reported to your credit and you won't be able to make a move financially until you get it straightened out. You cannot consolidate or bankrupt a student loan. The government will withhold your tax refunds. Your wages can be attached as can your property.
So take the matter into your own hands and get it set up as soon as you can. You'll be so relieved.
As for the other debt, it depends on what kind of debt it is.
Keep in mind that consolidation programs charge you for the service. They take a percentage of your monthly payment for themselves. Since you are already struggling, how much sense does this make?
If you have creditors, contact each one and set up a monthly payment play. If your debts have gone to collections, start working to pay one of them down, then move to the next one.
There is a book called "Financial Peace" by Dave Ramsey. It's the best book out there on managing debt and getting your credit straigntened out. Go by the bookstore or the library and have a look.
First, though, deal the the student loan.
Posted in eliminate credit debt
You can consolidate any Stafford Loans through your lender or the Direct Loan program, depending on what kind of loan program your school used.
If at all possible, it's best not to use loan companies that will consolidate federal loans with credit card debt because any Stafford or Perkins loans (federal student loans) have low interest rates, much lower than just about any credit card.
If you're already in default, contact your student loan servicer (whichever company you're supposed to be paying). You may qualify for a deferment or forbearance.
References :
A defaulted student loan cannot be "consolidated" with other debt.
Here's what to do about the student loan.
You are getting notices in the mail, no doubt. Call the toll-free number on the notice and find out who is handling your student loan. Then, call that company and talk to someone about getting the loan back on track. This is called "rehabilitation." It is fairly easy to do.
Keep a few things in mind though: the individual that you speak to is a collector. His salary is commissioned, based on how much he collects. So he will press you to make a large lump-sum payment. He will say "how much can you pay? I'm looking for $1500 to start? Can you do that? No? How about $1000? Can you come up with $500." etc.
Just play along. If you don't have it, just say, "No, sorry, all I can do is $50 a month" (or whatever).
Before you call, go over your budget and make sure you are committing to a reasonable amount for a monthly payment. This payment will be set up on an auto-draft from your checking account.
Here's the great news: after you make 9 consecutive, on-time payments, your loan is "cured." Fees and penalties are removed. The loan is then moved from the collection group to a lender who handles it just like any other student loan in repayment.
If you were to want to return to school, you would be eligible for additional borrowing.
Also, negative reporting to the credit bureau is removed.
It is really important to address the issue of the student loan. It has been reported to your credit and you won't be able to make a move financially until you get it straightened out. You cannot consolidate or bankrupt a student loan. The government will withhold your tax refunds. Your wages can be attached as can your property.
So take the matter into your own hands and get it set up as soon as you can. You'll be so relieved.
As for the other debt, it depends on what kind of debt it is.
Keep in mind that consolidation programs charge you for the service. They take a percentage of your monthly payment for themselves. Since you are already struggling, how much sense does this make?
If you have creditors, contact each one and set up a monthly payment play. If your debts have gone to collections, start working to pay one of them down, then move to the next one.
There is a book called "Financial Peace" by Dave Ramsey. It's the best book out there on managing debt and getting your credit straigntened out. Go by the bookstore or the library and have a look.
First, though, deal the the student loan.
References :
former FAO
I can help you, I work for a debt settlement company, send me an email at mbardram@rapiddebtsettlement and we can discuss your situation. No gimmicks, just trying to help.
References :