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My Mother Died, I’m Behind on Rent and My Car. I’m Scared. – Michelle

“Dear Steve,

My mother passed away in October – no life insurance – I took out 2 pay day loans and 3 payday installment loans to cover expenses and then my bank finally gave me a loan for her funeral expenses. But now I am caught in the vicious payday loan cycle and can not take care of daily living expenses for me and my daughter.

How do I get out of the payday loan and payday loan instlament loan cycle? The interest is from380-780 percent. I am about to lose my car and am behind on rent for me and my daughter. I am scared


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The Answer

Dear Michelle,

I’m so sorry to hear about the loss of your mother last year. Mine passed away last year as well.

My Mother Died, Im Behind on Rent and My Car. Im Scared.   MichelleThere are two choices, some payday lenders offer a no interest repayment plan but you’d have to call corporate headquarters to inquire.

If you don’t get anywhere with that then the most logical solution would be a quick chapter 7 bankruptcy. You’d most likely be able to eliminate your debt in 90 days or less and more importantly it would allow you to get back on-track with the rent and car payment which are higher priority debts.

You can click here to find a local bankruptcy attorney and talk to them for free about your specific situation. Get the facts and then you can make an informed and educated decision if bankruptcy is right for you.

The amount of your debt is not the deciding factor here for seeking legal protection and a fresh start. The bigger consideration is if the debt remains unaddressed how will it impact your life. In your case it looks like it could lead to you being homeless and without a car.

You can recover from bankruptcy, rather easily in fact. Read Everything You Always Wanted and Needed to Know About Bankruptcy.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

My Mother Died, Im Behind on Rent and My Car. Im Scared.   Michelle
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My Mother Died, I'm Behind on Rent and My Car. I'm Scared. - Michelle by

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.