Its Time You Face the Consequence

You have had never thought that someday you will become a defaulter and face the aftermaths of becoming so. The fact that your finances are pretty low and you don’t have enough funds to repay the amount is least heard by the authorities. All you know is that a storm is coming your way and you have to stand against it. One of the major ways the lender might secure money from you is wage garnishment. It is indeed one of the painful processes where your finances tend to go lower than before because your salary might soon experience a cut.

The lender uses wage garnishment as a methodology to collect the unpaid amount from the borrower in course of which the defaulter will experience a substantial cut from his salary. As per the Administrative Wage Garnishment, you will generally find a 15% deduction calculated on your disposable salary. Yes, your paycheck will be garnished every month. The situation may worsen for you if you have had secured multiple loans from different lenders because your salary will be subjected to a 25% cut.

However the Federal laws are also there to protect your interests through the following ways:

• You will be given the right to inspect any record related to your debt
• You will have the right to plead for a hearing
• You may request for a repayment procedure if wage garnishment has not been issued on you
• No employer should refrain himself from employing you because you are subjected to face wage garnishment.

Take Steps Before It Is To Late To Save Your Credit Score

Higher education is something that has become a necessity in today’s world. A well-paying and secure job is necessary to be able to lead a comfortable life and one needs money to get a graduate or post-graduate degree. Thus, loans become important for the students who have a desire to go for higher education. But with very limited number of jobs available it is becoming almost impossible for the graduates to pay off the loans.

The consequences of a defaulted student loan are known to all who have faced it or have heard of it from others. The effect of an unpaid student loan remains for the rest of your life simply because it cannot be gotten rid off through filing bankruptcy after the recent changes in the law.

There are a number of repayment options that one can avail. For those who have not been able to get a well paying job after graduation can apply for an extension. That way they will be able to increase the lifetime of the loan and the monthly installments are lowered. Loan deferment can be a relief for those who do not have any job and are in hoes that they might be able to secure a job in the near future.

There is always a way when there is a will. Repaying defaulted student loans is not easy. Therefore, steps have to be taken before the loans become defaulted. While this will allow you to pay the loan off easily, it will also save you from the collection agencies.

The Importance of a Spot-Free Credit Report

In today’s economic condition having a spot-free credit record s the envy of one and all. Therefore, you should strive to keep your record that way. But a single defaulted loan can spoil your credit report beyond repair. Therefore, when you take a loan, make sure you have the capability to pay it off. Given below are some of the tips that might help you.

Try to avoid taking loans if you can. Even if you have to, try and go for the federal loans since they have numerous repayment options.

Keep a track of the repayment period and the rate of interest that you have been offered in order to ensure that you do not default on the loan.

You must start saving for the loan repayment as soon as you can. If, for instance, you have taken out a student loan, then start saving even before you graduate. This will be useful when the repayment period starts.

Being unable to repay a loan due to financial difficulty is a possibility that everyone should consider. If this is the case then the first thing you have to do is to talk to the lenders. They might be the last person you would want to meet right then. But in order to stop your loan account from being transferred to the collection agencies, you have to talk to them and work out a repayment plan.

However, if the collection agencies are pulled in and you have to face harassment, send them a letter telling them to stop calling you. But one thing that you should keep in mind is that this will not stop them from suing you or the lender from calling you about the loans.

A good credit score will ensure that you will get loans easily and at low interest rates.