Dealing with Creditors(Part 3 of 5)

It happens to everyone at some point or another. A little bad luck can put you behind on your bills.

Before you panic, learn the basics on dealing with different types of creditors so you can keep a little slip up from snowballing into a financial crisis.

Student Loans

For better or for worse, lenders who make student loans are quite accustomed to their borrowers having trouble paying. While that might not be good news for student lenders, it’s great news for you if you are running short on cash. Most student lenders will go out of their way to help you if you run into trouble paying.

If you are having trouble, you can ask for forbearance or a loan deferral – these can last up to three years. You can also ask for income sensitive or graduated payment options. If you still can’t make payments, your account will not be placed in default status until you are almost nine months late, and then you can ask your lender for a rehabilitation program that will allow you to put your loan back in good standing with a certain number of on-time payments.

The federal government has stepped in to help as well, offering a program that allows debtors to pay the equivalent of 15% of their discretionary income as a loan payment (discretionary income is defined as any income above 150% of the poverty level – $10,830 for an individual in Arizona in 2009).

At The Pew Law Center, PLLC, we believe that your life shouldn’t be defined by debt. We have helped hundreds of people just like you find the relief they deserve from harassing bill collectors, paycheck garnishment, foreclosures proceedings, and – most importantly – the constant worry about money and what to do about your debts.

We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona file for bankruptcy or work through tough tax problems every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing debt. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.