Posted on: 17th Nov, 2008 09:46 am
Hi,
Well just like many young people I screwed my credit up and now I am looking to invest in real estate. I only have about $2100 in bad debt that I have not paid on ever and about $40K in student loans that are in default. The collection agencies that have these debts are offering settlements on these debts and the student loan people want me to go into what is called a rehab. My question is should I take the settlements on the debts and if so how much will that affect my score(my score is 550). any help is appreciated
Well just like many young people I screwed my credit up and now I am looking to invest in real estate. I only have about $2100 in bad debt that I have not paid on ever and about $40K in student loans that are in default. The collection agencies that have these debts are offering settlements on these debts and the student loan people want me to go into what is called a rehab. My question is should I take the settlements on the debts and if so how much will that affect my score(my score is 550). any help is appreciated
Hi Emailad4me!
Welcome to forums!
If you are going for a debt settlement, then it will affect your credit score negatively. The lender may report the late payments and they will remain on the reports for 7 years. However, once you pay off the debts, then it will be marked as "settled" in the credit report.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
If you are going for a debt settlement, then it will affect your credit score negatively. The lender may report the late payments and they will remain on the reports for 7 years. However, once you pay off the debts, then it will be marked as "settled" in the credit report.
Feel free to ask if you have further queries.
Sussane
my husband owed 19k in student loans that were in default, penalties took amount he owed to 23,500. the student loan rehab program we got him on through the us dept of edu is allowing him to put $500 down, then make $200 a month payments for 10 years, but after 10 months of payments they will remove all of the penalties and fees from the balance taking him back to only owing 19k, minus what we've paid up to that point, and they will also take all of the negative marks off of his credit report and report the loan as being paid as agreed since the date they became due. these people are very helpful and nothing like a credit repair company or a loan company wanting you to refinance. they are simply working with you to get you payments you can afford so they can start getting their money and you can improve your credit.
The best thing to do is pay off ur bills. And try to work out something with ur creditors.