Payday Loans

How Do I Get My Payday Loan to Stop Draining My SSDI?

Written by Steve Rhode

Question:

Dear Steve,

I am currently on SSDI (Social Security Disability Income) and have been in a payday loan for over 5 years where each month I have to re-loan to catch up. My bank account is negative $600 almost half my SSDI check each month. And also owe $600 the same month. that is most of my SSDI check and can only barely pay rent.

How can I get this to stop?

Cynthia

Answer:

Dear Cynthia,

We need to stop this insane loop. Probably the least expensive way would be for you to contact HELPS, a nonprofit law firm that represents seniors and disabled people.

What they would help you with is making sure you are in a position to safely default on the payday loan and then assist you with dealing with the lender if they decide to sue you. HELPS can assist you to determine if your income and assets are judgment proof and can avoid levy or garnishment.

If they do elect to sue you after default, you will probably lose but then will not be able to collect or intimidate you.

Other solutions like bankruptcy exist but I don’t have enough information to even begin to suggest it as an optimal solution if this is your only debt.

Then we have the bigger issue, the underlying issues that landed you in this spot. We can deal with the immediate pain of this situation but that does not address the underlying financial distress that led you to the loan, to begin with.

If you have not done so already I would recommend that you visit Benefits.gov to see what additional income supplement programs may be available to you to help make ends meet. These are benefits you are legally entitled to and every received in a benefit is a dollar you don’t need to spend.

You will find the people at HELPS are very kind and competent.

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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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