Payday Loans

I Took Out Payday Loans to Help Pay for College

Written by Steve Rhode

Question:

Dear Steve,

Single mom with 3 kids. My husband died in 2008 so truly single. No financial assistance from his family or mine. My family doesn’t have it and his doesn’t share it. Lol. Anyway trying to help my oldest with college expenses I took out payday loans. Are there any legitimate companies that help get rid of these? I work full time so half my check is going to pay these back.

Any legitimate companies that settle payday loan debt?

Alison

Answer:

Dear Alison,

I’ve seen more payday loan offers recently that are pitching payday loans as a way to pay for college. Some of the ads for these payday loans say “Fast approval | payday loans online | Student loans for college without cosigner“.

I was wondering if people were going to get trapped in these loans and your question solved the mystery for me. Apparently so.

I would be amazed if you could even afford a consolidation loan or to settle the payday loans given your paycheck to life ratio.

Probably the most likely scenario and least expensive way to shed this debt is to file a Chapter 7 bankruptcy. It would legally close the door on the payday loans in less than 90 days and get you back where you can live on the full paychecks again. You might want to read How to Find a Great Bankruptcy Attorney.

Most importantly, don’t take out payday loans to pay for college. Don’t do it.

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About the author

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.

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