Go Back To Search Results Question How can I go about paying loans that have been in default for 2 years? I really want to work on paying off my school loans but don't know where to start. I've been in default for a couple years due to my immaturity and now am trying to improve my credit. I've raised my credit score 43 pts in 4 months just by having one credit card and paying it off on time. What do I need to do to get the ball rolling and start paying on my loans? I could pay maybe 100 dollars a month right now. By estephania2182 Posted on 10/11/06 Total Answers 4 Answers- contact your lender and tell them that you are willing to start paying back your school loans just explain to them the truth and what happen. Answer by : Sandra C On Date 2006-10-11 18:24:00 Call them up make payment arrangements, an start shelling out the dough. Answer by : D L On Date 2006-10-11 18:25:34 Write a letter to the company which has your student loans and let them know your plan. There is a template on Microsoft Office you can use for the credit plan letter. If you don't know the company's address, you can look on the credit report. It will be listed there, along with other contact information the credit agencies have for the student loan. Answer by : Mariposa On Date 2006-10-11 18:26:04 There is a book called Your Money or Your Life by Joe Dominguez and Vicky Robin that will help you get going on your debt. Don't use your credit card any more its not mathmaticly practical to solve debt problems by getting more debt when you already have too much debt. Pay off the card and park it for now. Using it and paying is a great way to get your score up but a better investment of your time and dollars will be your loans that are in default. Then go back to your credit card and take it slow and easy. Contact who ever it is that owns the debt. Start making some payment. You can set it up with them. They will be a little stunned that you bothered. Showing some back bone is usually a little shocking to those who work in collections. We don't see it all that often. Even if you can't make the payment each month at what ever dollar amount you are required to now, paying something is always better than nothing. In as much as your in debt on your card, get it paid off now. Put all extra funds into that payment and pay it off early. That will free up some money to begin to hammer down your loans. Read the book and DO IT. I did the book one chapter at a time. I actually did each chapter. It was boring. It was a pain. It paid off big time. I never managed to do every thing to the extent I needed to but it still was very helpful. I figured out I had more money going out than I had coming in. (I sort of knew that one) and I found out WHERE exactly that my money was going. Yes that part was a suprize. I got the information I needed to change my spending. I also changed my bill structure. My total cash out put each month now for regular bills, (not gas and groceries) is just 301 per month. Thats because I paid off the house, I paid off the truck, I own everything I have, and I have no debt now. So even if I'm unemployed, I can survive a long time on very little money. This puts more of my money into other things like investments. Which in turn make more money so I can work less. By the way I'm raising 3 kids on this. Add in a few nights out with the kids, a video rental some gas in the truck and groceries and I"m still under 800 for the month. In other words I'm rich on $1000 a month. The bills are paid, every one is fed and the month is over and I have 200 extra cash each month. I put that away and that earns still more money. That means I get a raise every month. Granted its only a few cents but do you get a few cents raise every month by being in debt? Get out of debt, by paying things off then save a little. That way the next time you need money, you have a large down payment to start with and a good credit rating to help you out. You will be better off for it. Good luck. Read the book and work at it. You will get there. Answer by : john d On Date 2006-10-11 18:37:52   Go Back To Search Results