Get Out of the Cycle of Debt and Choose Peace Instead
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How do I handle a defaulted loan?
So I just learned of you a few days ago. My sister listens to you religiously and told me I should call you regarding my situation. Okay. So earlier this year, I went with a debt settlement company to handle much of my debt, which is primarily student loans and credit cards. Um, unfortunately just recently I went into default with one of my student loans and that is through Naviant, which is now Mohella. And what they, uh, offered me was something that's outside of my budget. Um, and my father is a co-signer on the loan as well. And I'm just trying to find out of ways of how I can negotiate something with Naviant to help me make the payments that I can afford. or what other avenues I can take.
Wow. So this is a federally insured student loan, right?
This is a signature student loan.
They all have signatures. They all have signatures. Is it private?
No. It is private.
Oh, okay. All right. Good news. Okay. All right. Well, lucky for you, we have actually a sponsor that refinances defaulted privately held student loans. So they'll buy it from Navient and refinance it and set it up where you can make the payments. You got a pencil?
Yeah, one moment. Yeah, go ahead.
All right. Why refi the letter Y R E F Y dot com. And so I'll go ahead and give you the mechanics because they've been advertising with us for a while. We send people over there, but the mechanics are they buy the loan because it's defaulted at a discount. And then they, so they don't have full face in it. They pay less than that. Cause you know, cause you're not paying it. You're not credit worthy. Right. So that's not a loan. Anybody would want to buy that. The guy's dead, the guy's dead beaten on it. Right. So they're going to buy it at a discount and then that enables them to restructure it and, uh, put an interest rate on it. That's low. And they still end up making good money on it, but you get the deal of the century.
So it's a win-win for everybody, even Navient, and I really don't care about Navient. Never would I try to help them win with anything, but it turns out they get money on a loan that they thought was bad, so they're happy. YRefi buys it at a discount, and then you're paying them a reasonable interest rate, so they're happy, and you get a payment you can afford, so you're happy. So that part's taken care of. Now, the rest of this... basically what these debt settlement companies have done and do and they did to you is they quit paying all any of your payments so all of your credit cards are in default right um most of them yeah no they should all be how long did you pay payments to the debt settlement company i did make payments correct yeah how many
Since May, so I'd say probably close to six or seven payments.
They haven't paid any of your credit cards since you signed up with them until they work a deal with each credit card company, and again, they're in default, so they're working a bargain with them. Correct. If you weren't in default, they put you there. That's why we tell people not to use these companies because it actually does more harm to your credit than even filing Chapter 13 bankruptcy.
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