A little embarrassing for me to post but its a topic I could definitely could use help for. Around the end of college, 2016, I pulled out a loan for a very low interest rate and refinanced some of my private loans with higher interest. I wasnt able to find a decent job after college for the first year so I just was able to get by with side gigs. I ended up defaulting on the loan and the loan seemed to have been sold off to Sarma, a debt collections agency. The total is roughly 20,000 but they sent me letters to settle for half. I defaulted back in 2018. Today, I purchased a car, with a cosigner because now I have a stable job with fairly decent income but that, now, third party loan came back to haunt me. I prioritized other student loans and paid those off first, as I did not default on them at the time. This is the only loan I have left under my account. It was embarrassing to have that loan come up. Im trying to fix my credit and the only reasonable option I can think of is settling. Ive researched and ive thought about getting some consulting advice but I wasnt too sure. Is the settlement price something that is not negotiable? Is there a way to remove the damage on my credit report? Is the debt often something a third can prove? I feel like I have a moral obligation to at least try to settle but any advice would be helpful. I understand that the total sum is my responsibility but any help would be appreciated. Some things I did find out:
- On the phone, request a physical copy of the agreed upon amount and on time payment.
- Send a physical cashiers check instead of account information.
- Have confirmation of the approved payment, in case Sarma sells off the remaining debt so that other third parties can come for me.
Any help would be greatly appreciated.