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Should I Get a Loan to Payoff My Parent Plus Loans?

By on April 1, 2016

Question:

Dear Steve,

I am retired from one job after 31 years, with a pension and aprox.$90,000 in parent plus loan debt. I have not consolidated it but wonder if it’s time. I am paying the lowest amount allowed and am job hunting. I viewed the video by the other debt adviser which is why I’m asking you.

Would a debt consolidation loan cost me less interest? I have less than $3000 credit card debt, an $800 monthly student loan sucking the life out of me. Can a consumer credit counselor help lower it? I used one a long time ago. Well any advice is appreciated.

Gail

Answer:

Dear Gail,

Considering your current income this might be a great time for you to take advantage of lowering your Parent Plus payments.

You should get familiar with submitting alternative documentation to support your current income level.

If you are not behind on your credit card debt then it is potentially possible for a credit counselor to lower your payment a bit. It does not hurt to ask and see what they can offer you for your specific cards. However, don’t be surprised if the total payment reduction is not huge.

And if you are struggling financially, the fastest and least expensive way out of debt is almost always to file bankruptcy. Typically people have their debt eliminated in about 90 days and get a fresh start.

That won’t eliminate your Parent Plus loans but this strategy in conjunction with the alternative income documentation should substantially lower your payments.

If you need specific help working through the process, feel free to contact whoever you did before for step-by-step assistance. At times it can be utterly confusing.

I really don’t see any reason at this time to get a debt consolidation loan. Try this program first.

By the way, congratulations on your new life ahead of you.

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READ  My Parents Have a High Income But Struggling Under the Parent PLUS Payments
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About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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