credit scores and wage garnishment
Posted 06 February 2011 - 05:12 PM
Posted 06 February 2011 - 05:39 PM
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Posted 06 February 2011 - 08:44 PM
Hello to all....was wondering if there is any hope for me. I have a 15% wage garnishment for student loans because I couldn't pay the amount required. My credit scores are all very low 500's. After lurking for the past several weeks and reading some wonderful "success stories", congrats to each of you, I would like another chance. Not sure I will ever get it since I have a wage garnishment. Is there hope?
My story begins in 1995, when I began paying off my state loans at $250 a month, plus my Sallie Mae loans at $100 a month. I was one year out of college, working a temporary job, and then I noticed with the loans I had, I didn't have much money left. I then to my regret discovered cash advances, and within two years I was at or near the maximum limit of several cards.
But I didn't just stop paying the bills. There were many weeks where I had less than $300 in my bank account and I had to make that last until the next pay period two weeks later.
In 2005, my state let me know that the bonds that backed the loans were paid off, and hence the balance I had would be forgiven. That balance was about $7,000. Now, my loans could be concentrated to Sallie Mae, which were still $100 per month.
In February 2008, I wrote my final check to Sallie Mae. I was done with college loans.
Now, I'm concentrating paying off my credit card bills I ran up irresponsibly. I've already paid off five in full, and I will pay off my 6th within the next two months. I still have a five more to go, but like the college loans, it takes time and discipline to pay them off.
And during all this, my credit scores were around the upper 600s (sometimes in the mid 600s because the cards were nearly maxed out) and now they're in the low 700s (haven't checked my scores lately). Now I have a comfortable cushion of money that I can use instead of credit cards and loans.
Having little or no discretionary money after I paid all the bills was worth it in hindsight, versus phonecalls from loan and credit card companies day and night, then judgements by a collector, and then the 15% garnishment on paychecks.
Posted 06 February 2011 - 10:55 PM
"it takes time and discipline to pay them off."
I have been at this 11 years, and I'm nowhere near done. I would be further along if I had found this site earlier...
Sheesh, it took me three years to get to the point I could stick with a budget...but I'm hard-headed and stubborn.
And don't think I don't blow the budget at times...it happens. Not to the degree I did way back when, but still.
It CAN be done.
Not to try to one up you or anything, but I had garnishments for a long, long time at 25%, the legal max, because I was too proud, or stubborn, or scared, to go into the courtroom.
Sometimes dinner for kiddo and I was to split a box of mac and cheese (back then they were 10 cents a box) and a plate of fried cabbage. Some nights, I didn't eat. I don't mean for that to be a tear-jerker, or whatever, but that's what it was.
I spoke with a friend this evening in the lending business. I gave him my information and he said that if all was accurate, I would qualify for a mortgage at a (what I consider) good rate. I've been waiting a long time to hear that. Lots more to do, though, before I will be ready.
I hope that helps, and that I don't sound like I am pontificating; but I say to you, again:
It CAN be done.
Posted 06 February 2011 - 10:59 PM
Student Loans are the worst to default on. 15% is a lot, esp now the way things are. Maybe there's a way you can work out something where you are paying a set amt each month instead of out of your check, although, since they are already doing that... I don't know that they would agree to something else. Unless there are hardship papers or something you can fill out.
Posted 08 February 2011 - 07:19 PM
Posted 13 February 2011 - 11:27 PM
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