How to stay away from the student debt?
Similar to all the other kind of defaulting debts, the defaulted student loans too will result in a drop at your credit score leading to some stressful credit for the future. In case you already have the defaulted student loans on your shoulders, then it is high time to rectify the damage that has already been inflicted upon you and your credit scores. Here are some very useful advices about the way you should deal with the defaulted student loans.
The student debt is the kind of loans that does not get discharged even after you have filed for the bankruptcy. The worst part of the entire student debt is that it hits your credit scores pretty badly. This will lead to a black mark on your credit reports and it will remain there for the next 10 years at least. The consequence of this will mean that you would not be able to apply for any loan in the future with such bad credit scores. Thus it is extremely important for you to make sure and also act very wisely so that you do not face the defaulted student loans.
If you have already defaulted student loans, then your employment checks would be garnished to pay the student debt. But in case, you are an unemployed person, then your unemployment checks might also be garnished, although it is against the law to garnish the unemployment checks.
The next thing to look after is your credit reports. As soon as the defaulted student loans reflect on your credit scores, it will become extremely difficult to apply for any other loans unless the student debt are paid off completely. If you repay the student debt and bring it out of the defaulted student loans, then it will not be shown on your credit report, but the late payments would be marked from the date of recording till the next 7 to 10 years.
In case you make 9 consecutive payments to your already defaulted student loans, that too at the correct time to the creditor, then it would not be considered as the defaulted student loans again. But the only thing is that this facility can only be utilized once. And the best thing about this is all the monthly payments are affordable for you. This can be the best thing that suits your financial circumstances when it comes to the defaulted student loans and the student debt.
Processing your request, Please wait....
