Debt is a major problem for many Americans. Figures have been steadily rising to around $2.4 trillion currently owed by individuals. Only a third of this staggering amount is revolving debt, such as credit card debt, while the remainder is in loans for cars, houses and education.
Student debt has also become a greater burden for Americans trying to increase their career prospects. Ohio carries the greatest amount of student debt, with the average Ohioan graduate owing more than $30,000 by the time he or she finishes college or graduate school. The balance of student loans make up more than half of students' income.
These debts can be complicated by lost or mismanaged payments. Shoddy records or bad-faith practices often extend debts and loans past their normal repayment spans. It is also vital that repayments are reported correctly to credit bureaus so debtors can retain high credit ratings and avoid wage garnishment or bankruptcy.
One of the nation's largest lenders, responsible for around $12 billion in loans, no longer has paperwork to prove that they are entitled to payments on many of their accounts. At one point, the company sued a student for repayment of loans to attend a college that the student never attended.
Separate billing companies and debt-recovery agents complicate the issue further. Resolution of debts, either through repayment or forgiveness, must be reported to all organizations involved to protect former debtors from lawsuits and other legal actions.
Legal representation can help deal with creditors and their agents if debts are in doubt or have been repaid without acknowledgement. Debtors should not live in fear and should be able to move on with their lives.
Source: WKYC, "Billions of dollars in private student loans could be wiped away," Danielle Serino, Sep. 05, 2017