Please Help me w/ Debt & Credit score

[BeachGrl27]

Years ago I took out student loans and didn't realize some were being sent to my parent's home. Eventually they went into default. I paid off a large portion in the spring of this year (2014). I thought I was paying off all my student loan debt but it turns out I have a few thousand more in student loan debt with a different collections agency.

I thought my only credit score issue was 1 student loan debt in defsult. I paid it about 7 months ago. When I applied for a $70,000 mortgage for a 2 bedroom town home the bank told me I had a number of credit issues:
1) I have a different student loan account in default
2) I have two utility bills in collections from about 3 years ago - I have to investigate this but I believe I forgot to close my account with the utility companies when I moved back home to live with my parents.
3) there was another debt, also in collections, but the lady at the bank only gave me the collection agencey's name and didn't know what it was for.

I have 2 questions please:
1) I have the money to pay the debts, how do I contact people and negotiate (other than student loans) for them to accept pennies on the dollar to pay my debts in full?
2) is there a way to get a detailed credit report so I can make sure everything is paid and to make sure I don't have more debts than what the bank found?

thank you in advance to anyone who can help me straighten things out.

[doingitallwrong]

You are entitled to free credit report from each of the three bureaus annually -- go to www.annualcreditreport.com and follow the steps. A lot of people like to get one every four months, to keep tabs on things throughout the year, but in your case it's probably better to get all three now, so that you know what's showing up. (They're not always identical.) (Additionally, there are now sites that provide credit reports from just one of the bureaus; there's a matrix on those here:
http://en.wikipedia.org/wiki/Compari...eport_websites)

The credit reports will also list the name, address, and phone number of the company reporting the item, so you can contact them. The collection listing should show the original creditor's name, but if it doesn't, check your reports for a matching amount from an original creditor - typically both will show up on your credit report. If there's no match, the collection agency is required to provide you with the name and address of the original creditor upon request.

This article goes into a good bit of detail about how to settle a collection debt by yourself:

http://www.creditinfocenter.com/debt/settle-debts.shtml

Personally, though this site only recommends it for small amounts, I would probably always try for a Pay-For-Delete agreement:

http://www.creditinfocenter.com/debt/pay-for-delete.shtml

There's also lots of good information on dealing with credit reports, collections, etc. at creditboards.com

Do not pay for your credit report, and do not pay for "credit repair". It takes some time, but you can do this on your own for free (well, you'll have postage fees, because everything should be in writing and sent certified with return receipt) and you'll know that you're getting the best deal you can. (Not all credit repair companies are your advocate; they'll take the first offer and tell you it's a great deal.)

[Weird Tolkienish Figure]

You are entitled to free credit report from each of the three bureaus annually -- go to www.annualcreditreport.com and follow the steps. A lot of people like to get one every four months, to keep tabs on things throughout the year, but in your case it's probably better to get all three now, so that you know what's showing up. (They're not always identical.) (Additionally, there are now sites that provide credit reports from just one of the bureaus; there's a matrix on those here:
http://en.wikipedia.org/wiki/Compari...eport_websites)

The credit reports will also list the name, address, and phone number of the company reporting the item, so you can contact them. The collection listing should show the original creditor's name, but if it doesn't, check your reports for a matching amount from an original creditor - typically both will show up on your credit report. If there's no match, the collection agency is required to provide you with the name and address of the original creditor upon request.

This article goes into a good bit of detail about how to settle a collection debt by yourself:

http://www.creditinfocenter.com/debt/settle-debts.shtml

Personally, though this site only recommends it for small amounts, I would probably always try for a Pay-For-Delete agreement:

http://www.creditinfocenter.com/debt/pay-for-delete.shtml

There's also lots of good information on dealing with credit reports, collections, etc. at creditboards.com

Do not pay for your credit report, and do not pay for "credit repair". It takes some time, but you can do this on your own for free (well, you'll have postage fees, because everything should be in writing and sent certified with return receipt) and you'll know that you're getting the best deal you can. (Not all credit repair companies are your advocate; they'll take the first offer and tell you it's a great deal.)

In addmition to annualcreditreport, you can get an account at CreditKarma and check your credit everyday to see your "estimated" score (not actual).

Are you SL's private or federal? If they are federal, forget about them settling in any way, shape or form. However you have nice options like IBR and PAYE where you will only pay a percentage of your income each month.

Private SL are truly nasty horrid things, however. Your options are to either pay, work with them to lower what you owe, or try to game the system if you can't.

[doingitallwrong]

I meant to mention that any debt that is written off will most likely be taxable to you. You may or may not get a 1099-C from the debt holder (depends on how much was written off; they must send one for $600 or more, but can send one for less) but you are supposed to report the debt regardless. (If you don't report it and they do, you could be facing penalties and interest in addition to the tax due.) The tax is still going to be less than the total amount, of course, so it's still worth trying to settle, but getting that 1099-C can be a nasty surprise if you aren't expecting it!

[bjl584]

I'm wondering how your mail got sent to your parents' house and your parents failed to inform you.

I'd start by pulling your credit report and see what's going on there.

[dczech09]

Check your credit reports to get information on who exactly you owe, and how to contact them. If your debts are in collections, contacting the original creditor/lender will not help as your debt could have exchanged several hands by now. Your original creditor likely sold your debt and they probably have no idea where it is now or who owns it. Getting your credit report will help you zero in on who has it and who needs to be paid to settle it.

IF you do settle for pennies on the dollar, please note that you will have to pay income taxes on any forgiven amount. You will still save money in the grand scheme, but it is worth knowing. As far as your credit impact goes, the credit damage has already been done. So do not expect that paying off the debt will help your credit.

As far is income-based repayment and pay as your earn (as brought up by Weird Tolkienish), those programs are only available for certain federal student loans and certain restrictions may apply. Even so, they are terrible programs that will lower your payment but extend your payment term for an extremely large time. You will end up paying dearly in the end if you go that route, so please only do so as an absolute last resort (and even then I would not want to do it).

You need to get a handle on your credit situation and know where your debts are. If you find anything on your credit report that you do not recognize (like you did not borrow it), then you need to report it to the bureau.

[Wisedog]

I'm wondering how your mail got sent to your parents' house and your parents failed to inform you.

I'd start by pulling your credit report and see what's going on there.

I agree with this. Do you have a bad relationship with your parents??