Laura wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
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“Dear Steve,
4 pdl’s can’t pay them keep borrowing from them each month. Tons of medical bills school loan car note food everything is toooooo much. Please help! How can I get out of debt?
Laura”
The Answer:
Dear Laura,
First, stop taking out more payday loans. A payday loan can be a good tool to use in a limited set of circumstances. The optimum time to use one, if you have no other option, is when you have a short gap but need the money right now for something necessary and you can repay the money on your next pay day.
For example, the car needs repairs and you need $300 to pay for it but don’t have credit or cash to pay for it right now. A payday loan can help to bridge that gap but you have to pay it off when you next get paid.
And if you are taking out more and more and rolling them over, you are in big trouble with few options.
With what you shared I would assume that you are unable to repay the payday loans, medical bills and you are in trouble with the car note.
A credit counseling or debt management program is not going to be of much help in your case. Payday lenders don’t play nice with these groups.
You can either stay the course you are on now or consider bankruptcy. Go and speak to a local bankruptcy attorney. If you want a free bankruptcy consultation, click the link.
I’m afraid that outside of you finding a large sum of money to pay off the rolling payday loans, you are toast and bankruptcy is the most realistic escape from your cycle of debt.
And Laura, please stay away from the payday loans in the future unless you can pay it off on the next pay day.
