OK here is the background and the current situation. My girlfriend of 2 being has recently allowed me to review her credit report and overall financial situation. Situation: Exceptionally Terrible. She was raised surrounded by a family (like many) that did not teach financial literacy whatsoever. Her quandary resides mostly surrounded by student loans, but there is some additional debt as well. She’s a smart girl (less basic financial significance) and I’ve gone over some basic “best practices” when it comes to debt and credit to try to at smallest amount stop the bleeding. Below is information that will better describe the situation:
Female in her mid-twenties with no assets.
1: Centralized Student Loan $40K. This student loan has been paid on time and is in excellent standing.
2: A Centralized Student loan $35K which was defaulted upon in 2006 and is currently being serviced by a collection agency. I am currently getting more information as to what entity currently owns this debt. She has been paying monthly payments to this agency since 2006.
3. Outstanding Credit Card debt: $7K. This is with a collection agency, she has been making regular monthly payment since she defaulted on the Card 2006.
5. Three credit card accounts which are currently open and in excellent standing. The balance of these 3 cards total about $2K, and the APR on all 3 cards are between 25% and 27%.
Her yucky annual income is $45K. All together, she pays approximately $800 per month to satisfy minimum payments of the debt listed higher than.
We’ll need to sit with someone who can assess the best course of action better than I, and I’d like to know of a excellent place to start looking. If the $35K debt is no longer a centralized student loan, then bankruptcy seems like it may be worth looking in to. I believe she’d still be stuck with the $40K loan, but her quality of life would be much higher and either way her credit is screwed for several more being. Its not like she’d be able to reliable any kind of loan with $85K of debt and a $45K salary. I have also been reading about new centralized policies for Centralized Student Loans and Income-based payment plans, but legislation seems to be slow (no surprise there). What are equipment we should be looking in to? Who should we be talking to for advice on all of this? Any advice would be welcome.
colleges.mywebcommunity.org – it provides some tips about applying to US centralized and state grants for institution students.
Post is way to long to read.
Why does she have $75K in loans if she came out of school only making $45K???? Looks like she picked a terrible career plot.
In any case, read Dave Ramsey’s Total Money Makeover and follow his plot.
We are debt-free except the house and have nearly $50K in our emergency fund. Follow the plot – it works.
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the 35 is still a student loan Bankruptcy will only bail her out of the 7k and not worth the hurt.
She needs to cut expenses, get a second job. Pay off the 7k and freeze all her charge cards. Common significance says you do not spend what you do not have. With a salary of 45k she does not qualify as low income.
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Just because a loan is in default dosen’t mean it is "no longer" a centralized student loan.
It’s still a centralized loan that you can’t bankrupt against, they are just using an outside (or inside) collection agency to help them get the debt repaid.
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Hi,
My names is Carmen Jones. I saw your question in yahoo answer .I chose to refer you to this God fearing man, because i have been SCAMMED twice by fake lenders. When i had terrible credit, it was this man that gave me a loan of $45,000 to consolidate my bills you can get to him via Email: mrben_rume@yahoo.com. Tell him Carmen Jones referred you to him that he gave her a loan sometime ago. Goodluck,
Carmen Jones
References :
colleges.mywebcommunity.org – it provides some tips about applying to US centralized and state grants for institution students.
References :