My Debt is Killing Me and I’m Afraid My Payday Loan Will Make Us Hoomeless


Dear Steve,

Have a bad credit score due to school loan and I’m married with 1 kid but my husband is dusable so I’m the only one bringing income.

I have 2 questions for you:

Question #1: I borrowed $2k from Check n Go which due to money problems and paying a lot for private insurance I was no longer able to pay it. I tried to come to a payment plan that was actually doable for me but they weren’t going for it. The collections agency called me again today and said I have until 2pm to agree to some type of payment plan or they will sue me and garnish my wages. Can they do that? I’m scared because we are about to become homeless and I don’t even make enough to rent a 1 bedroom for us, because we live in California. So Can they do that?

Question #2: I have a bad credit score, 480 to be exact, so it’s literally impossible for me to find a place due to most places want someone with 650 credit or higher. I have under $20k in debt which includes my student loan. What’s your advice on the best way to fix my credit? Bankruptcy? Consolidation? And what is consolidation for that matter? Please help I, I feel like this credit score is slowly killing me.



Dear Stefani,

Sorry to hear about the immediate crisis.

Any lender can always sue you when you default on the contractual agreement and fail to me the mutually agreed on payments.

But the reality is sometimes you can’t because life creates complications.

Given your income status the logical course of action would be to explore bankruptcy first to wash away the debt you can’t manage and get a chance to live within your income. If bankruptcy is the best option for you, your debt could be eliminated in as little as 90 days.

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Here are some important posts you should read:

Those That File Bankruptcy Do Better Than Those That Don’t
Easily Rebuild Your Credit After Bankruptcy
How to Rent a Lovely Home or Apartment After Bankruptcy

There are a couple California of attorneys on my referral list for student loan issues and they both handle bankruptcy as well, click here. Who knows, maybe there is some help available with the student loan debt as well if they are private student loans. If they are federal loans it might be a bit tougher but there are options available.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

Steve Rhode

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