Hi guys.
Backstory: I have a large amount of private student loans that went into default after difficulty paying after graduation (took a while to get a decent job).. I did a chapter 13 to settle credit card debt and put loan payments on hold after going through a particularly rough patch in life - I completed that Ch 13 plan recently.
My only current debt is student loans and a car payment ($360) I need for my job. The student loan balances have increased significantly over the years of nonpayment. I’m on a payment plan for federal loans, so those I’m not too worried about at the moment.
Since private loans have gone to collections and I was made aware of it, I verified the debt etc etc and I know it’s legitimate. I spoke to the debt collector and agreed to a payment plan, thinking this would reflect positively on my credit report. Now I know that it won’t, I would rather save these monthly payments and make a settlement offer for much less than I owe, say perhaps after a year of saving.
I am aware that I’ll be taxed on the amount I don’t pay, but I feel like I could handle that later by making a payment plan with the IRS.
My private loan balance is more than my annual income to give some perspective. I spoke with a refinancing company who quoted me $1,059 per month for 15 years to pay the entire balance. This is absolutely not sustainable for me and does not work out mathematically in my budget after childcare and the most basic living expenses.
Please don’t shame me. I know I have royally effed up and I’m trying to fix it, now that I have a decent job and am out of bankruptcy.
If anyone can give advice on the following I would very much appreciate it!!:
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I gave the debt collector my debit card # over the phone - can I call back and “un” authorize the payments I agreed to? I’m worried about unauthorized withdrawals and want to save the money for a settlement if that’s what’s best for my situation.
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Should I slowly pay off the debt using the payment amount I can afford ($300/month)? It would take 33 years, but it will eventually fall off my credit report right?? Or no? And this would halt collection actions??
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Should I save and settle instead? If I buckle down I could have a decent settlement offer in a year.
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Will I ever be able to buy a house after this? It has been a life goal for my husband and I to buy a house and I want to make that happen for our family.
(Side note: husband has his own student loan debt and does not have excess income besides what he contributes to retirement and emergency fund)
Submitted November 06, 2019 at 08:19PM by itaintmeeeeee https://ift.tt/2WR0pYx
