I am delinquent $25,000 in student loans.And this reflects in Credit Reports. How do i get my life back?
Posted in Credit on 10/12/2008 03:54 am by admin
AppleG asked:
I never re-paid student loans, and was reported to credit agencies. Bad move, but now I want to rebuild, and not live in fear of no credit. I owe a lot, up to $30,000 by now. Creditors are after me for 2 years now, and my rating is in the gutter. What can I do?
I never re-paid student loans, and was reported to credit agencies. Bad move, but now I want to rebuild, and not live in fear of no credit. I owe a lot, up to $30,000 by now. Creditors are after me for 2 years now, and my rating is in the gutter. What can I do?
Also, can I open up a bank account with bad credit?
ELBERT
10/13/2008 at 2:24 am
you should get a credit counceler for one thing
10/13/2008 at 4:03 pm
Join a rebellious alliance that fights against the capitalist, pathetic world that is US govt./college.
10/15/2008 at 6:04 pm
Do you honestly think you’re going to be able to get that solved over Yahoo Answers? Get a professional to discuss your options.
10/18/2008 at 12:08 am
Yes, you can open a bank account…regardless of your credit.
If you want to fix your credit problem start repaying those student loans.
If they were government guaranteed loans, you will never escape them….so, you will have to pay them.
You can set up reasonable monthly payments. After several months of on-time payments, you will be able to restructure your loans…and get your student loans out of “default”. This will, in time, fix your credit problem…unless you ***** up again. (Don’t do that!)
After you get out of default, you can set up new terms for your loans (refinance them), including setting up a long repayment period for your loans. This will increase the amount that you pay back over the life of the loan, but decrease your monthly payment to something manageable.
Call the lender(s), to discuss options.
You might also want to contact Sallie Mae. They are the major source of student loans in the U.S. (if you are in the U.S.) They might be able to give you some insight into the possibility of them refinancing your loans for you…setting you up with manageable payments, etc.
Also, eventually, think about buying a house. Eventually, the house will gain equity, and you might find that it is less expensive, overall, to refinance your house and roll-in your student loans (if your home loan offers a lower interest rate than your student loans do).
Good luck.
10/18/2008 at 10:02 pm
Be warned that if you have a bank account they may garnish your wages. If this wont happen the most likely bank to work with would be a credit union.
You have two options…pay the money back – by contacting the creditor or collection agencies and working with them to pay $X per month for Xmonths. IF you can’t pay this back file for bankruptcy.
Do you have any assets you could sell/auction to pay some of this money back? Ebay has worked for many people. Or could you downgrade your car, ie if you have an expensive car sell it and get a cheaper one. You will probably sell your car for less that you got it for but don’t think about that, you’re in a bad situation so that could be of good help.
Also, remember that getting back from bankrupty will take about 7 or 10 years from now but you’ll be discharged in 3 years. It will also be on your file FOREVER. And I’m pretty sure that with the collections – eg if you havnt made a payment for two years well you’ve got X amount of time left before they will stop hasselling. I think all up it takes about 7 years of you doing absolutely nothing before they stop hassling you. But if you make a payment tomorrow well it will take 7 years from tomorrow.
Good luck…I’m about to file bankruptcy tomorrow, in a very similar situation to you but I’m still a student and cannot repay my debts.
10/21/2008 at 4:22 am
Do you know about student loan consolidation??
Consolidating student loans can reduce monthly payments by up to 54 percent. You typically have 10 years to repay student loans, but, depending on the amount you’re consolidating, you can extend your repayment plan all the way up to 30 years.There are no prepayment penalties, so you can even choose to pay off the loan early and the maximum interest rate is 8.25%. So consolidating student loan would be the best option from my point of view.
Here is a company’s name for your reference who offers student loan consolidation.