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ADVICE- Could have been out of Default for over a year!

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ADVICE- Could have been out of Default for over a year!

I called AES about a loan I have been making payments on through ACH every month as one of the first steps to repair my credit.  When I agreed to this, I received a wage garnishment letter and probably would have agreed to anything at that point.  I wanted to see which loan this actually was, if I was rehabbing it by making payments and a few more things.  Here is what I found out:


1-This is for FIVE loans that I took out through ACS.  I seriously thought it was just one!


2-I have been doing these ACH's for 2 years now.


3-I could have been out of default status a long time ago if I opened the mail they sent me.  They need a letter from me and I never sent it back.  I just assumed that it was a notification that they were going to deduct from my account on the 1st of every month.


I'm mad at myself for ignoring the mail, but better late than never, right? I will be out of default on Nov. 4th! 


What should I do next?  My payment might go up because it's for 5 individual loans, so the rep I spoke to recommended consolidation.  Is this the right choice? 

Message Edited by liltickledpink21 on 10-09-2008 04:08 PM

TU 615 EQ 498 EX 604
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Re: ADVICE- Could have been out of Default for over a year!

Consolidate after your rehab is over.  When you rehab is complete, yes your payments might go up and that is because the amount you owe and the current rate you get.  If you do not like the new terms of the loan after it has rehabed, you can consolidate with the US Dept of ED. 

I am paying $200 a month for 20 years at 4.85 per on a $38K debt, that is better than paying over $500 with Wells.

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