Be very careful with private loans. You got the run around because the attorney is speaking for the creditor, but they probably don't own the loan. Make sure you keep a log of your conversations and agreements. Its not likely they will sue you if they know you don't have the cash, winning a judgment is easy, collecting is another thing. In my experience, they will try to scare you to get you to pay the most they can get you to pay. I would send them whatever you can afford. You still owe on the loan, you are accruing interest by the day, and they will definitely take it. It not likely they will take matters further if you are at least making some effort and there is some activity on the account. They really don't want to use the time, energy, and money to go to court.
So my advice would be, make your $200 payments. And if you ever can make more, do that too!
Starting Score: TU:676;EQ:648 8/2011
@Anonymous wrote:
I have a private student loan that I owe $8000 on. I missed several payments while in school and now it's with an attorney. When I spoke to the attorney to make a payment plan to avoid going to court I was told I have to speak to the creditor. When I call the creditor I was told I need to speak to the attorney. Well they called on 3 way to work an arrangement. I told the creditor that I'm a single mom and the most I can do us $200 a month. She was not agreeing to anything feasible for me. She asked for me to make a large payment of 2000 and pay 500 for 5 years. This didn't make sense and I asked if I can skip the large payment and do $200 a month for for years. After she ran her calculator she saw that my plan was more realistic. Her plan would have me paying $30k! She was just trying to get me the pay an amount she knows I can't afford and in the long run make me pay more. She would also not give me a statement outlining the plan and told me to figure it out myself. She also told me the balance includes all interest and would continue accruing interest every month but would not give me the interest rate or tell me when to expect being done. She just kept saying figure it out. I wanted to get an attorney but not sure what I should do. Should I pay every month ? It's like an endless pit!
Before making ANY payments, please get ANY arrangements in writing!! I am dealing with this right now b/c my mother co-signed my loan when I was in college and they called her, she made payments over the phone to pay the loan off in a year, and after paying $450 a month for nearly a year... they claimed that no 'arrangments' were ever made. I received no more statements to pay the bill, and no responses to my written request. I am now dealing with the CEO's office and hoping to get resolution (many 120+ lates and a CO
).
Also, try to talk to the OC and see if you can get IBR (Income-Based Repayment) Plan. They won't offer it usually, but I was able to get that before by requesting it (with OC and CA). Depending on what loan company it is.
Best Wishes!
Starting Score: 576 EQ 1-12-13
@PapasWifey wrote:
@Anonymous wrote:
I have a private student loan that I owe $8000 on. I missed several payments while in school and now it's with an attorney. When I spoke to the attorney to make a payment plan to avoid going to court I was told I have to speak to the creditor. When I call the creditor I was told I need to speak to the attorney. Well they called on 3 way to work an arrangement. I told the creditor that I'm a single mom and the most I can do us $200 a month. She was not agreeing to anything feasible for me. She asked for me to make a large payment of 2000 and pay 500 for 5 years. This didn't make sense and I asked if I can skip the large payment and do $200 a month for for years. After she ran her calculator she saw that my plan was more realistic. Her plan would have me paying $30k! She was just trying to get me the pay an amount she knows I can't afford and in the long run make me pay more. She would also not give me a statement outlining the plan and told me to figure it out myself. She also told me the balance includes all interest and would continue accruing interest every month but would not give me the interest rate or tell me when to expect being done. She just kept saying figure it out. I wanted to get an attorney but not sure what I should do. Should I pay every month ? It's like an endless pit!Before making ANY payments, please get ANY arrangements in writing!! I am dealing with this right now b/c my mother co-signed my loan when I was in college and they called her, she made payments over the phone to pay the loan off in a year, and after paying $450 a month for nearly a year... they claimed that no 'arrangments' were ever made. I received no more statements to pay the bill, and no responses to my written request. I am now dealing with the CEO's office and hoping to get resolution (many 120+ lates and a CO
Also, try to talk to the OC and see if you can get IBR (Income-Based Repayment) Plan. They won't offer it usually, but I was able to get that before by requesting it (with OC and CA). Depending on what loan company it is.
Best Wishes!
your mother needs to pull up the bank account and show that they have been paid.... if they refuse to, then they need to return the money....
your mother needs to pull up the bank account and show that they have been paid.... if they refuse to, then they need to return the money....
Hi Ben, as far as I know the "payments" are not being disputed, but the fact that there was a "payment arrangement" that would pay the loan off in a year. The way the payments were applied, the majority of it went to interest as opposed to the principal, which was not supposed to be the case. So after 11 months of $450 payments, less than $1000 of the principal balance got paid down!!!