Comments on: I Filed Bankruptcy and Now Need to Get My Student Loans and Credit Score Rehabilitated. – David http://getoutofdebt.org/16422/i-filed-bankruptcy-and-now-need-to-get-my-student-loans-and-credit-score-rehabilitated-david Free debt help and debt advice on how to get out of debt, getting out of debt consolidation scams, and inside information on the debt relief and debt help industry. Fri, 25 May 2012 02:12:00 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Steve Rhode http://getoutofdebt.org/16422/i-filed-bankruptcy-and-now-need-to-get-my-student-loans-and-credit-score-rehabilitated-david#comment-17828 Steve Rhode Sat, 26 Dec 2009 20:08:29 +0000 http://getoutofdebt.org/?p=16422#comment-17828 David, The savings account is going to pay very little but the rate of return isn't the value of it, it's the security net it gives you in case of a sudden need for cash without having to run to credit. Once we get everything stabilized then focusing on either the smaller balance loan or the highest interest rate loan, which ever gives you the most emotional drive to keep paying them off is the way to go. Glad I was able to help. Steve David,

The savings account is going to pay very little but the rate of return isn’t the value of it, it’s the security net it gives you in case of a sudden need for cash without having to run to credit.

Once we get everything stabilized then focusing on either the smaller balance loan or the highest interest rate loan, which ever gives you the most emotional drive to keep paying them off is the way to go.

Glad I was able to help.

Steve

]]> By: David http://getoutofdebt.org/16422/i-filed-bankruptcy-and-now-need-to-get-my-student-loans-and-credit-score-rehabilitated-david#comment-17827 David Sat, 26 Dec 2009 19:49:21 +0000 http://getoutofdebt.org/?p=16422#comment-17827 Very nice, that's exactly what I was thinking I would do. To be specific, the loan in deferment has a very low interest rate (1.8%, how did I manage that?), while the defaulted loan has a 5% interest rate. So, as I see it, I can put that money into a savings account with a 3-4% interest rate while it's in deferment and I'm still coming out on top by a small margin. So, once I have reestablished the payment history on the defaulted loan, removed the default from my credit history, built up a bit of savings, and established a secured card or two to rebuild my credit... it wouldn't be a problem to pay off the rest of the defaulted loan completely if I can afford it? It seems to me that since it is the higher interested rate that wouldn't be a bad idea, so long as I don't hurt myself doing it. Very nice, that’s exactly what I was thinking I would do. To be specific, the loan in deferment has a very low interest rate (1.8%, how did I manage that?), while the defaulted loan has a 5% interest rate. So, as I see it, I can put that money into a savings account with a 3-4% interest rate while it’s in deferment and I’m still coming out on top by a small margin.

So, once I have reestablished the payment history on the defaulted loan, removed the default from my credit history, built up a bit of savings, and established a secured card or two to rebuild my credit… it wouldn’t be a problem to pay off the rest of the defaulted loan completely if I can afford it? It seems to me that since it is the higher interested rate that wouldn’t be a bad idea, so long as I don’t hurt myself doing it.

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