Attorney Arthur Lebedin was featured on NBC Nightly News, discussing the consequences an individual could face if they default on their debt.
The segment featured a young man who intentionally refuses to make the monthly payments on his student loans. He said that when he gets a bill in the mail, he simply shreds it.
The man interviewed said his goal is never to pay on his student loan debt. He reasoned that this strategy would help him financially. Instead of making his monthly payments, which near $2,400, he could wait until the creditor’s lawsuit deadline passes, which would decrease his debt to income ratio.
Generally, a creditor can sue an individual for defaulting on their loan. However, every state has a set limit on how long a company has to take legal action. In New York, the statute of limitations for a creditor to bring a lawsuit is 6 years.
The man is just one of a group of people protesting against crippling loan debt, which affects almost 45 million Americans. The group hopes to start a national strike against creditors and the private industry.
However, Attorney Lebedin cautioned against their methods. He said that by ignoring their debt, they are opening themselves up to costly consequences. They could ruin their credit, face bank account levies, and incur higher payments because interest continues to accrue on unpaid debt. Additionally, they could have difficulty buying or selling a home.
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