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Is There Any Hope For Me to Get Out of Debt? – Kenneth


“Dear Steve,

I changed jobs last year and had to take my 401k distibution because I had to pay off a loan that I had taken out on that 401K.They charged me the penalty and took taxes out, but I found out this year that I still owed a little over $3000 in additional taxes. The new job layed me off in December 2008 due to no fault of mine (auto dealership) and I was unable to find another job till May of 2009. Needless to say what little savings I had disappered quickly and I had to borrow money to live on. I filed bankruptcy in 2007 while getting a divorce. Although I now have a job I have a backlog of debt from being out of work, most importantly child support that my kids need!

Is there any hope for me? I have checked into loans to try to get some of my bills paid but the places have ridicoulous interest rates (some over 200 %). I don’t have any assets to put up for collateral and most traditional lenders see me as a bad risk because of the bankruptcy, short time on the job, short time at my residence (had to move to find work), credit score (around 650 FICO), etc. Is there any lender you could recommend for my situation?

Thank you !!!!


Dear Kenneth,

The lender that is most plausible and reasonable for people in your situation is This is a peer-to-peer lending network where small investors pool their money to make loans to individuals in situations just like yours. Check out LendingClub and let me know how your experience is. I think you will find the loan funded in a short period of time. There are few, if any fees associated with the loan. has impressed me, but don’t tell them.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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.

1 Comment

  • I applied at Lending Club .com and they stated thet were unable to list my loan request based on my credit score,debt to income ratio or other items on my credit report. Any other ideas?

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