Which Form 843 Garnishment 2011-2024

David is an Indianapolis. Hi David, welcome to the Dave Ramsey show. Hi Dave, thanks for taking my call. Sure man, what's up? Me and my wife have a student loan issue. We had ten separate student loans with Sallie Mae. They were calling for a couple of months. We finally started setting up a payment plan, but we didn't notice that they had sold off two loans to a different student loan company, which is more of a debt collector style. They garnished her wages just recently, and we're trying to figure out what the best route would be. The loan balance was originally $12,000. They currently quoted us at $25,000, $15,000 in principle, $5,000 in interest, and $5,000 in fees and costs. They said they'd settle for $18,000. I was wondering what the best route would be. If you're thinking of taking the $18,000 to get it off the garnishment, that'll give you better cash flow in your situation. Can you scrape the $18,000 together? We cannot. We have been following the baby steps. We've got a $1,000 emergency fund. Now, so you don't really have the option of taking the $18,000 and inquiring about a HELOC against our house just to get it off the garnishment. I wouldn't do that. I believe it's best to ungarnish, but for right now, how much other debt have you got? We have $75,000 in other debt. $22,000 on cars or on a wedding loan, and $50,000 on another student loan that we're currently on a payment plan for. Okay, and your household income is $115,000. Oh, that's good news. So you're plowing through this pretty quickly. You'll be debt-free in two years. Yes, sir. We were doing really well, and we just got scared by the garnishment. Yeah, I think...