Sadly as most, I'm coming here for bad reasons and hoping for advice!
I have 2 defaulted private loans totalling roughly $60k (I'll spare the story, mistakes were made) that defaulted in 2011. The loans are still through National Collegiate Trust. I started working with MRS Collection services at that point and after a ridiculous amount of work, agreed to a payment plan. After 3 months of no checks cashed I found out they didn't have the account anymore. The account was then transferred to Sentry Credit.
At this point (early 2012) I agreed to a payment plan of $300 plus their $10 fee for payment (which I question the legality of charing me $10 for an electronic check). All was fine and dandy until now when I received notice from NCO that they are now servicing the defaulted loans and they start blowing up my Dad's (cosigner) phone for full payment. Obviously each one tries to get a lump sum to settle the debt, which obviously if you're in this position you don't have.
Each place has refused to do a long term payment plan. I'm in a much better financial position than I was when the loans defaulted and I can afford consistent monthly payments that would be greater than the actual loan payment would be. I have told them this and they have no interest. They put me on some temporary payment plan until I come up with the funds to pay it off in a lump sum.
These options aren't helping. Other than these two loans, my wife and I pay about $1200/month for her loans and my federal loans. Our combined income is well above average now ($85-90k) but this type of cash is simply too difficult to come up with. I want a real, long term option. We're perfectly capable of paying the money back over a reasonable amount of time.
I've considered Chapter 13 but an attorney I spoke to advised against it and said negotiating a payment plan is best. But I've been unable to do that since they refuse to give me a long term option or even put anything in writing.
How do I fix this long term without winning the lottery? Thanks in advance for any advice!
My suggestion would be to do a short term payment agreement with them. When that term is up, just keep paying as though it was still the plan.
If you haven't already, I would suggest sticking to the original payment instead of paying them more than what the loan would have been. The reason for this is - if they think you can pay more now, they will keep pushing and pushing for more money each time. I understand that they have a job to do, and that you do owe the money, but they need to be reasonable and work with you.
If you are paid every two weeks, I would suggest sending in a payment (1/2 of what the payment should be). It keeps the money flowing and makes the CA feel better about your commitment to pay the debt.
Let us know how it goes...