Debt Consolidation

iVillage Member
Registered: 08-15-2004
Debt Consolidation
2
Mon, 03-20-2006 - 7:13pm
Hi everyone, I'm new to this board and was wondering if anyone had any advice. I was just researching debt consolidation services and all I got was a headache, there are so many! I was wondering if anyone knew if there is a way I could consolidate my credit card debt as well as student loans.

I have been out of work for about 2 years due to circumstances beyond my control, now that I am working again I would like to start getting myself out from under this huge debt. I owe about 4,500 in credit cards, and about 35,000 in student loans which are all obviously in default. Two of the credit cards have judgements against me. I really have no idea where to start. Any advice, input would be greatly appreciated. Thanks, Sugar
iVillage Member
Registered: 01-25-2006
Mon, 03-20-2006 - 8:27pm

I worked in student loans about 10 years ago. I encourage you to call the guarantor and see what they are able to offer you in the way of student loan consolidations/forbearance/etc. I don't have recent enough info to give you specifics but they should be able to work with you to get it out of default. When I was doing it, it seems like several months of consecutive payments got you on the road and then they'd work with you to consoldiate or resell it back to a servicer. I would recommend NOT combining the student loan debt with the credit card debt. You would have different repayment options/deferment/forbearance options AND student loan interest is tax deductible so you wouldn't want any other kind of loan that would take that away.

I don't know much about the cards with the judgements on them. There are others on the board with more experience around that.

Peg

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Tue, 03-21-2006 - 11:22am

Hello Sugar and welcome to the DSG.

All my best,
Danni