I am planning on paying off my defaulted student loans in full. Should I pay it all off, or keep some "debt"?

Question

I am planning on paying off my defaulted student loans in full. Should I pay it all off, or keep some "debt"?

Answer 1

you crazy? you pay it all off asap

Answer 2

Heather,

There's a good article at eHow on steps to take to begin tackling your debt.  Take a look at it:

http://www.ehow.com/how_2326032_avoid-es...

How to Stop Escalating Debt

It includes information on companies that can help you with debt consolidation and reduction.  

You can also look here for tips on earning some extra cash online:

http://www.ehow.com/how_2254361_money-in...

How to make money on the internet, scam-free

Lastly, here's an interesting alternative to conventional lending...getting a "social networking" loan from Virgin Money (from the same folks who run Virgin Airlines):

http://www.ehow.com/how_2310995_student-...

Social Loans from Virgin Money

Hope these help.

Answer 3

Pay it off cuz the interest will 'kill' you.

Answer 4

I am not sure why you want to "keep some debt"?  It says that the loans are defaulted so that means your credit probably has suffered.  Are you thinking of making regular payments to show that you have learned your lesson?  I think that you can do and still pay off this debt.  

Do you have other debt with higher interest rates?  If so, pay those off first.  Always pay highest interest first and work your way down.  Work to be debt-free.  If you want to build your credit score, pay off a credit card each month (or at least all but like 20 bucks of it).  That will show improved spending habits and make you a better credit risk.

God's best to you.

Answer 5

Pay it all back. That way it shows you weren't playing around with them.

Answer 6

Yes you should pay it off as it will affect your credit score.  If you are not able to manage on your own you can go for a student loan consolidation program which will help you to reduce your debts and pay it off in full.

Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference.

Answer 7

Pay it all off at once if you can.  The government can seize any and all assets in your name until that debt is paid in full.

Answer 8

Because it's defaulted, pay it all off as soon as possible.

If it was still active and you had a choice between this and paying off a credit card, I'd tell you to pay off the card. The interest will be higher and the interest isn't deductible.

But because of the status of your student loan, clean your name and get it off the books.

Answer 9

pay it all off.

Answer 10

Hi,

I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:

http://d6b0.easyurl.net