Here’s a thought I’d like to bounce off folks to see if I’m thinking correctly. I have about $200k in PLUS debt. That puts interest alone at about $1,317 per month. I’m not entirely clear on how much my pay can be garnished, 15% or 25%, though it looks like 25%. Anyway, defaulting means that I would, in fact, go onto a sort of ICR/IBR payment arrangement since my payment is limited by pay, regardless of what I owe.
It appears that if the most that can be garnished is 15%, I need to earn $8,780 per month more than the amount that I can earn free of garnishment for it to make sense to not default and if the most is 25%, then my monthly income would need to be $5,268 more than the amount that can be earned free of garnishment for it to make sense to continue to make payments and not default.
Assets aren't titled to me. I appear to still be eligible for forbearance for a couple of more years, could go to school at least half-time for a couple of years, etc.
Am I missing anything? It seems that on one hand I have a problem but on the other hand the folks I owe money to have a far bigger problem.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.