However, there are alternatives to get back on track and obtain rehabilitation of your student loans with proper negotiations with the lenders or collection agencies. Moreover, it is important to find a solution to your default in order to avoid negative consequences on your credit and raise your score again.
Finding Out Your Debt Status
The first step you need to take is to find out your current debt status. In order to do that you will need to contact the state department of education and inquire about your current debt situation. Once you have been told about the standing of your student loans, you will need to contact the lender or the collection agency depending on the condition informed by the state department of education.
Also, you may want to inquire about the Title IV student debt rehabilitation letter. This document will provide you a permit to continue with your studies. It is provided by the state department of education once the lender or collection agencies confirm that your student debt status is back to normal. The whole process can take between half to a whole year, so you may want to start as soon as possible.
Negotiating With Lenders Or Collectors
Collection agencies are usually willing to negotiate new terms on your debt and the actual lenders will also be willing to negotiate with you since they would otherwise have to sell the debt to collectors at a much lower price. Therefore, no matter who holds your debt, you just need a smart approach and to show that you are willing to get back on track with your student debt payments.
You will reach an agreement with the debt holder and you must make sure that you will be committed to repay your debt because you will not get another chance if you default again. Also, make sure that the state department of education is notified of the timely payments of your debt. Six consecutive and timely monthly payments are needed to obtain the rehabilitation but it may take a month or two more for the whole process to be finished.
Who Is Responsible For Paying Of Debt
This question often rises when it comes to married couples. If your spouse did not apply for the loan, he or she is not responsible for the repayment. The only chance that the lender has to hold someone else responsible for repayment is when the other person applies jointly or as a co-signer. Otherwise the cancellation of the student loan is a personal responsibility of the debt holder.
We point this out because some collectors and lenders try to gather information about other members of the family for their collection practices. And you should be well aware of the fact that they cannot require that information as part of the agreement if the other person did not apply for the loan.
The only documentation that you may be required to submit is your own and is limited to proof of income, residence and other documentation to back up the information you provide like unemployment certificate or payment stubs from your employer.
Tuesday, January 29, 2008
How Do I Choose the Best Debt Consolidation Company?
These days' people are more and more prone to getting into debt, probably because money is being offered to us from all directions and a certain amount of personal debt is not regarded as normal. But more and more are getting into the worried stage!
What about those that are tired of always falling behind on payments, if a major chunk of their salary is going towards paying their debts and are tired of pestering collection calls, it is time for these people to find some calmness in their life.
What all of these people need is not another loan to pay, but to get help in the form of a debt consolidation program? To find the best debt consolidation company you will have to shop around and talk with whomever you can who has had this experience.
Two major things that you should look for in this type of a company are experience and expertise. A good way to judge is to check whether the company is registered with the Better Business Bureau. Then check if they have ever had any negative reports.
Another way of judging the company is by reading the customer testimonials. This gives you an idea about their customer service. During this trying financial time you need people to work with that treat you with respect and honesty.
They should stop your creditors from contacting you and they will work with your debt collectors to inform them of the negotiations that will be taking place. Next, the consolidators will help reduce the interest payments to a very small figure, if one at all.
Also, look, at the upfront fee, the payoff fees, their fees, etc. As a smart shopper, you must look at the whole package. Therefore, it is important that before you sign on the dotted line you must read the fine print very carefully.
A good debt consolidation company will offer you a tailor made solution that fits your financial situation. You will then have a personal version to help you to get out of your own circumstance. This type of company ensures that you are out of debt and you should ONLY work with such a company. It will also help you stay out of debt in the future by giving you financial tips and tools and counseling.
Best Debt Consolidation has valuable information worth looking at. A reputable debt company has to be found and I suggest that you start searching now to find one.
What about those that are tired of always falling behind on payments, if a major chunk of their salary is going towards paying their debts and are tired of pestering collection calls, it is time for these people to find some calmness in their life.
What all of these people need is not another loan to pay, but to get help in the form of a debt consolidation program? To find the best debt consolidation company you will have to shop around and talk with whomever you can who has had this experience.
Two major things that you should look for in this type of a company are experience and expertise. A good way to judge is to check whether the company is registered with the Better Business Bureau. Then check if they have ever had any negative reports.
Another way of judging the company is by reading the customer testimonials. This gives you an idea about their customer service. During this trying financial time you need people to work with that treat you with respect and honesty.
They should stop your creditors from contacting you and they will work with your debt collectors to inform them of the negotiations that will be taking place. Next, the consolidators will help reduce the interest payments to a very small figure, if one at all.
Also, look, at the upfront fee, the payoff fees, their fees, etc. As a smart shopper, you must look at the whole package. Therefore, it is important that before you sign on the dotted line you must read the fine print very carefully.
A good debt consolidation company will offer you a tailor made solution that fits your financial situation. You will then have a personal version to help you to get out of your own circumstance. This type of company ensures that you are out of debt and you should ONLY work with such a company. It will also help you stay out of debt in the future by giving you financial tips and tools and counseling.
Best Debt Consolidation has valuable information worth looking at. A reputable debt company has to be found and I suggest that you start searching now to find one.
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