Credit Repair + Debt Elimination = 800+ FICO® Score Credit Report

Monitoring Your FICO® Credit Score and Student Loan Debt.

The percentage of people who are getting behind and defaulting on the repayments of their student loans has been steadily increasing over recent years. It can be very difficult when you finally graduate and find that you owe thousands of dollars in student loan debt and the job that you have isn’t paying quite enough to cover all your living expenses and the payments required on your loan.

It is very easy to fall into this debt trap, but neglecting this debt, you will quickly find that your credit rating associated with your FICO® credit score on your credit report is in a free fall, and you will be forced to begin your quest for credit repair.

Many students get into difficulty paying back their loans and they begin their working career with bad credit due to defaulting on their loan. You don’t want this to happen and you will need to factor into your budget the repayments of the loan. Make this debt elimination a high priority and your credit rating will not suffer from a student loan debt.

While payment is due once you graduate or stop with your education, there is often a grace period of 6 to 9 months after that date, depending on the type of loan that you have. The first thing you will need to do if you are having problems paying is to determine what type of loan you have and what options are available to you. You will need to be proactive, because this debt will cast a bad credit shadow on you until it is paid in full.

This grace period will give you time to find a job to help make the payments.

With some loans, you will begin to make interest payments immediately, whereas others will allow you to pay the interest over the term of the repayments or at the end of the repayment of the actual loan.

This is why it is important for you to find out what type of loan you have and what options are available to you to help with your financial planning and make sure that you don’t default on the loan repayments.

If you do default on the loan there are various consequences that you need to be aware of. The full amount of the debt could be called up for repayment in total or it could be turned over to a debt collection agency.

You could incur additional late fees and collection fees and your credit history could be severely damaged.

There are many more areas that will have impact on your life, so it is wise to work through any issue with your lending advisor and do so with the assistance of the budget that you will have already prepared. They might be able to arrange a consolidation of debt that helps you pay off your loans at a lower interest rate, thereby reducing your overall payments that need to be made each month.

Student loan debt is no different than other forms of debt-when they become delinquent, your credit rating will deteriorate. Over a period of months, your FICO® credit score on your credit report could be so low, as to prohibit you from attaining any line of credit. Do not fall into this trap.

Dr. Robert Miller, PHD
Investigations Analyst
www.TheCreditRobbers.com

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Credit Repair + Debt Elimination = 800+ FICO® Score Credit Report

Credit Reports and Paying Overdue Taxes.

It is top priority to pay all your overdue taxes as soon as possible due to the compounding problems that occur and the damages that they can create for your FICO® credit score and overall credit rating.

With penalties and interest on overdue taxes it doesn’t take long for the total to mount up where you will be paying more than the original amount outstanding.

Federal taxes are one of your most important debts to clear as there is no one quite as ruthless at recovering debt than the IRS. They have more powers than anyone else to recover debt. You will not win this one, and your credit rating attached to your FICO® credit score on your credit report will nosedive if not paid in a timely manner.

The IRS can take assets to cover the debt and that even includes your home so you don’t want to be messing with the IRS.

If you know that you won’t be able to pay your tax when it falls due, then you will need to look at all alternatives and that might even include the necessity to use your credit card to pay your account simply because that will be an easier debt to manage than the IRS and the interest and penalties that they will impose if not paid on time.

If you have enough equity in your home, then that is another solution, because the interest you will pay on your home mortgage will be a lot less that the IRS interest for late payments.

You will probably be reluctant to use your house to borrow the money, and rightly so; however, in the case of federal taxes you could stand to lose your house if you didn’t pay anyway.

If you have already incurred penalties and interest for outstanding taxes then it is possible to come to an arrangement with the IRS where they will reduce some of these charges provided you can offer them some reasonable explanation as to why this happened. An example of this would be an illness that stopped you from working and earning enough money to make payments.

Often you can arrange a payment plan with the IRS to pay off your debt and if they agree, then you would use your budget to work out how much you can reasonably afford to pay without getting in difficulty and defaulting.

Once you have a payment plan sorted out, you won’t want to miss any payments under any circumstances. Your FICO® credit score and credit report, along with your credit rating will at least be maintained at the highest level possible.

Dr. Robert Miller, PHD
Investigations Analyst
www.TheCreditRobbers.com

Contact Us: Send a FormMail Message

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