Student Loan Consolidation

If you have used up all your available deferments and forbearances, consolidation may work for you. Not only can consolidation lower your monthly payments, it restarts the clock for all deferments and it restarts the clock for all deferments and forbearances – thus postponing when you must begin repaying your student loans. For example, if you have already used three (3) years of deferments and three years (3) of forbearances for a particular set of loans, by consolidating them into one loan, you can get up to three (3) more years of forbearances.

Consolidation allows you to simplify the repayment process by combining several types of federal education loans into one loan, thereby making just one payment each month. Also, that new monthly payment might be lower than what you’re currently paying because interest rates may be lower and repayment time has been extended from 10 to 30 years. Consolidated loans are available from private lenders (Federal Family Education Loan, FFEL) or Direct Consolidation Loan Program offered by the Department of Education.

You may want to consider consolidation if:

• You have used up all your deferments and forbearances, don’t qualify for any of the low payment plans, and cannot afford your monthly payment.
• You want a lower interest rate even though you can afford your current repayment plan.

Your loans are in default. Under the Direct Consolidation Loan Program, loans that are in default may be consolidated with the government. Loans in default with private lenders may be consolidated, but with greater effort. Often, with private lenders, you must make 3 consecutive months of payments before they will consider allowing your loans to be consolidated.

You may think getting a loan consolidation is a no brainer since it usually results in lower interest rate loan with lower payments. However, there are some details that may change your mind.

• First, like all low-payment plans, extending payments over a much longer time results in much more money being paid in interest. Thus, the loan cost more over its lifetime – often times 2 to 3 times greater.
• Second, if you are married, you can consolidate your loans jointly but only if both you and your spouse agree to repayment of the entire loan – even if you divorce. That seems unwise considering most couples divorce within five years of marriage. Further, if you consolidate jointly and one of you dies, the surviving spouse is still responsible for repayment on the entire consolidated loan; unlike if the loans are separate and one person dies, then his or her loans are canceled.

Once made, consolidation loans can’t be unmade because the loans that were consolidated have been paid off and no longer exist. Contact the Department of Education for requirements concerning consolidation. For plan details contact the Direct Loan Origination Center’s Consolidation Department. You can reach them by calling 1-800-557-7392 or visit http://www.loanconsolidation.ed.gov

Foreclosure and Short Sale Removal

Many people feel like they’ve been hit in the face when credit problems strike them. On a much larger scale, getting hit in the face is similar to some degree as getting your house foreclosed on or any credit problem.
 
How are you going to handle yourself or your credit after foreclosure happens?
 
Or for that matter after ANY credit crisis happens?
 
The number one thing I tell our clients is to make sure all of their other trade lines are positive. When you can isolate an incident on your credit it has less of an impact.
 
Many clients ask if there is a difference in doing a foreclosure, a short sale or a deed in lieu.
 
The common alternatives to foreclosure, such as short sales, and deeds-in-lieu of foreclosure are all “not paid as agreed” accounts, and considered the same by your credit score. This is not to say that these may not be better options for you from a financial perspective, just that they will be considered no better or worse for your credit score.
 
If you are considering bankruptcy as an alternative to foreclosure, that may have a greater impact to your credit. While a foreclosure is a single account that you default on, declaring bankruptcy has the opportunity to affect multiple accounts and therefore has potential to have a greater negative impact on your credit.
 
Again, there are always alternatives when you call Fix My Score.  Our attorney has a proven method to remove foreclosures and shortsales from your credit report.  You pay not fee for this service until it is removed from your credit. There is a way out of this unfortunate situation.

How long do negative items stay on your credit report?

How Long Do Negative Items Stay on Your Credit Report?

The items on your credit report are called tradelines. They can either be
positive or negative. Positive tradelines help your credit score and
negative tradelines lower your credit score. Most negative items remain on
your credit report for 7 years from the date of first delinquency, but
there are exceptions:

Delinquencies (30 – 180 days late) remain for 7 years from the date of the
initial missed payment.

Collection Accounts remain on your credit report for 7 years from the date
of the initial missed payment that led to the collection (the original
delinquency date). When a collection account is paid in full, it will be
marked “paid collection” on the credit report.

Charged Off remain for 7 years from the date of the initial missed payment
that led to the charge off (the original delinquency date), even if payments
are later made on the charged-off account.

Closed accounts are accounts that are no longer available for further use.
Closed accounts may or may not have a zero balance. Closed accounts with
delinquencies remain 7 years from the date they are reported closed, whether closed by the creditor or by the consumer. Positive closed accounts remain at least 10 years.

Lost credit card – If there are no delinquencies, credit cards that are
reported lost will continue to be listed for 2 years from the date the card
is reported lost. Delinquent payments that occurred before the card was lost
are reported for seven years.

Bankruptcy- Chapters 7, 11, and 12 remain for 10 years from the filing date.
Chapter 13 remains 7 years from the filing date. Accounts included in
bankruptcy remain 7 years from the date they were reported as included in
the bankruptcy.

Judgments (child support, civil & small claims) remain on your report for 7
years from the date the judgment is filed.

Tax Liens – (city, county, state, and federal) Unpaid tax liens remain 15
years from the filing date. Paid tax liens remain 7 years from the paid date
of the lien.

Inquiries remain on your credit report for 2 years, with those in the last 6
months usually given the most consideration.

Positive Accounts remain indefinitely and paid positive accounts remain 10
years.

The credit experts at FixMyScore know credit law and how to use
the laws to your advantage. FixMyScore works with you during the dispute process to achieve the best possible outcome in eliminating negative items that are impacting your credit life. Our credit experts will analyze your credit report to target for removal the inaccurate, misleading and unverifiable items. The good news is that the reporting system itself is flawed, 96.7% of negative items are on the report WRONG!
Don’t become a victim to high interest rates and absurd fees.

Call The Credit Experts Today! 888-977-1222

To Great Credit,

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