Student Loans: When a Debt Collector Comes Calling

If you've been to college - undergraduate, or post-graduate - then it's likely you have a number of student loans in your name. It's also likely you're one of the many people who cannot find a job that will help you adequately repay those loans, or the balance you owe far exceeds the income you can earn from your chosen field.

If you have defaulted on your loans, and debt collectors have started to call, do not panic, but do act quickly on your own behalf. There are things that you can do to protect yourself.

Determine Who Holds Your Default Student Loan

Private loans are handled differently than government loans. If you have private loans, you may or may not be able to consolidate them with your government loans in order to get a lower monthly payment. If, however, you owe only government loans, you may be able to get deferment and lower monthly payments. When contacting your loan holder, be honest about your situation and ask what options are available to you in your present situation.

Consider Chapter 7 or Chapter 13 Bankruptcy

It is extremely difficult to get student loans discharged during a Chapter 7 bankruptcy, but it is not impossible. If you are able to prove that the loan amount to be repaid is an "undue hardship," the student loans can be eliminated completely. However, this is very a very difficult process and should be done with the consultation of a seasoned attorney.

With a Chapter 13 bankruptcy, the payment terms of your student loans will be set by the court, and repayment can take place over the next five years. Then, after that time has passed, collection actions can start against you again. At that point, you may want to try to have them discharged again. Still, this should be done with the help of a legal representative.

Do Not Tolerate Harassment

With student loans, there are several actions that debt collection agencies can take in order to collect on the debt. Lawsuits, wage garnishments, tax refund interceptions, and federal benefit garnishments are all tools in the arsenal of the student loan collector. But these can be challenged in court. Again, make sure you consult an attorney with experience in collections and student loans. Still, though, no collector is allowed to call you repeatedly, make threats, or otherwise harass you to try to make you pay.

If you need help, are being harassed, or need to dispute a loan, it's best to find an attorney who is experienced with student collections and can help you get the debts discharged or make payment arrangements that everyone can handle. Once you have an attorney, debt collectors are no longer allowed to contact you, and everything will be done through your legal representative. When it comes to repaying student loans, do not wait for a lawsuit to come to your door. Be proactive, and save yourself time, money, and further difficulties.

Sergei Lemberg, Esq. is the Principal of Lemberg & Associates, a law firm specializing in fair debt collection law, lemon law, and other consumer law.

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Pros and Cons of Your Consolidation Options

Who would not simply love to receive fewer bills at the end of every month and at the same time save money? Doesn't this sound very familiar to you? But simply carrying out the futile exercise of consolidating all your debts into one with the lowest possible interest rate will not essentially be the key to all your financial worries. To be more specific, you will need to intricately consider every single pro and con of various options open to you, before you reorganize all your current debts and make relevant plans to cut on your monthly spending over a time period.

After selecting the most suitable debt consolidation program, ensure to maintain your total cost at the lowest possible level. Following 3 tips may help to materialize your consolidation plan:

1. Do not be tempted to unnecessarily extend the pay off period for the new loan to its maximum limit. You should instead opt for a plan that will enable you to come out of your liabilities within a three to four year period.

2. You must carefully read every single line of the bottom or rear-side fine print, to avoid any surprises like an application processing or balance transfer fees or other charges.

3. You must strictly ignore offers that outwardly sound simply too good.

A few tips for people who may be in a truly poor financial state.

Should you be experiencing some serious financial problems and are usually overwhelmed by the consistent load of your monthly bills, prior to doing anything else, you should take the advantage educating yourself through online debt consultations. Some good ones are free of cost, respect your privacy, and help you to interact with a live person who will discuss all your options in order top offer you the best advice. He may recommend a reputable non-profit organization for your credit counseling that will be prepared to negotiate on your behalf with any creditors.

Great Options for Credit Card Holders

The easiest method for consolidating your various credit card related debts is by calling each of your current credit card lenders in turn to ask them to simply make you a better offer. Should your customer care representative appear reluctant, ask for a senior officer of the company.

Credit card lenders are well aware of the tough competition prevailing in the market, and it is relatively cheaper to keep you rather than to switch over to a new client as your replacement, particularly if count among their 'low maintenance' clients who pays his bills regularly. When you get them on the line, ask them about your following three concerns:

1. Obtaining a new special rate for any future balances which you will transfer onto their card.
2. Obtaining a lowered interest rate on future purchases on their card.
3. Obtaining a waiver of the annual fee, if any.

The pros include:

1. It only takes a call to a toll-free number.
2. You will not lose anything but may save lots of money.

The cons include:

1. It may fail to work, particularly if your payment record id spotty.
2. You may have to go through the hassle of getting a new credit card.

Our site is dedicated to providing quality content on debt relief, consolidation, and management- absolutely free! We offer many pages of researched articles in the topic of debt relief, consolidation, and elimination. Check out our other articles at http://www.NoDebtExperts.com

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High Street Spending

In the past times when the UK economy has been in trouble, the love affair between the Consumer and High Street spending has come to the rescue. Traditionally the high street has always bailed out the UK economy.

Today's economic problems mean that can't happen. No more easy credit means the UK consumer can not bail out the struggling economy by spending their way out of economic problems. A survey out today (11th Aug 2011) shows more than 60% of shoppers have switched to cheaper brands, while 32% claim that they are worrying about surging prices leaving them with no disposable income according to the British Retail Consortium's study.

BRC Director General, Stephen Robertson 'weakness in the economy and rising utility and food and fuel bills top consumers concerns for the next 6 months' he also warns that even after paying off essentials, households that do have spare cash are choosing to pay off debts rather than spend on the high street'

He also admitted that the difficult economic circumstances are forcing consumers to become more savvy.

Other factors affecting High Street spending are the worrying increases in inflation. Figures just out show the UK rate of inflation is back on an upward trend - reaching 4.4% in July, up from 4.2% in June - the latest figures show.

The real worrying thing is that in most parts of the country, many employers are struggling to keep all of their staff due to the rise in prices. This leads to many redundancies and force more and more people onto JSA and other forms of benefits, resulting in a deflation to many peoples day to day living allowance.

The ONS reported that no single component drove the increase in CPI inflation, with price increases seen in a number of different areas.

More expensive rent, particularly for those in social housing, was one such area that put pressure on Britons. Landlords are finding it increasingly harder to maintain suitable and sustainable living environments for their tenant's due to the rise in costs.

The cost of clothing, footwear, furniture and other goods usually falls in July amid summer discounting, but reductions weren't as big this year, the ONS said.

It added that higher charges for financial services - such as arranging a mortgage - had put an additional burden on consumers. The problem here is that this is a negative spiral which. Consumers spend less, prices drop and we are in a deflationary spiral.

As well as consumers watching what they spend, they are having to manage their finances better. There are so many more options available to consumers that their creditors would have them know.

Being well informed is really the key to making it through this difficult economic time. We all know that it is the creditors who are really feeling the squeeze. inflation in day to day living cost and deflation for most peoples wages making it harder for people to keep up with their repayments. Being pro-active is the key, getting in touch with the right people as soon as possible and creating an action plan is, in my opinion a sensible solution to getting out of debt.

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