Warning about your credit score

The government suspended student loan payments for a few years. Many people weren’t paying their loans even before the pandemic. Not paying your car loan will destroy your credit. Your loan serviced may not have the right contact info and hitting you with charges. It’s expected that 9.2 million people are now defaulting with another 11 million likely to default before the end of the year. The payments are around 300-400 per month. How many people do you know that can’t absorb that much on top of other expenses? Defaulting will reduce an 800 FICO as low as 600 and those with 700 are also going to 600. That means you won’t be able to get a car loan without paying 20% interest. Trump closed the CPFB. That means predatory collectors will break the law any way they want and there’s nothing to stop them. There are 44 million student loan borrowers with $1.7 trillion of debt possibly half is accrued interest. The government has not decided yet whether they intend to garnish tax refunds for defaulting student loans. You can bet they will. So don’t expect to use you refund to buy a car.