Tuesday, May 1, 2012, AM | 5 Comments
You are out on a vacation and suddenly you receive an unpleasant call. The person on the other side of the phone is yelling at you and complaining that you have failed to pay off your educational loans. You have once taken student loans in your post graduation and have failed to pay off the money thereafter.
The debt collectors are now calling you repeatedly in order to collect the debts. With the passage of time student loan default is gaining momentum and now in US the rate of student’s debt has exceeded to 25%.
Since you have failed to pay off the money in time, you need not think that the world has come to an end and you should not start banging your head. However, you need to concentrate on the repayment options.
When do you become a defaulter?
If you do not pay off your educational loans for a longer period of time it comes to a delinquent position. Generally the delinquency period is 270 days or nine successive months. If you fail to pay off the money within that time the delinquent loan comes to a default position.
You should be very careful while paying off your debts and should pay off the money to your loan lenders within the delinquency period. Never let any delinquent loan come to a default status.
What difficulties arise due to defaulted student loans?
The first thing that happens to you when you fail to pay off your student loans is that your mobile phone starts ringing. The collection agency keeps chasing you and they call you irrespective of time and place.
They even call you at your job place and keep harassing you. Sometimes your debt collectors call at your relatives’ or neighbor’s house when they fail to keep in touch with you. They also make sure that your wages get garnished by 15% and you do not get any financial assistance.
You cannot apply for any loans from the financial institutions. Your credit cards stop functioning as well. You also cannot own any property in your future. This leads to a bad credit score.
How to come out of default status?
Consult your money lender – When you become a defaulter of students debt, its better that you consult your money lender and ask for deferment. After you get financially strong you pay off the money in monthly installments.
Get your loans consolidated – You can also get your multiple loans consolidated and make a single payment. Two or more low interest rate loans can be merged into a single loan and then you can pay off the money with great ease.Facebook.com/doable.finance
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