My finances had spiraled out of control with high interest and penalty charges. There wasn't any more room on my credit cards, so I started taking out payday loans.
After his marriage ended, Robert had acquired over $75,000 in debt and had few remaining assets.
He explained that he had been unable to manage his finances and that they had spiraled out of control, with high interest and penalty charges. He had begun taking out payday loans to subsidize his income as he had run out of room on his credit cards and was no longer able to use them.
Robert was a plumber, and worked for the union; he had determined that realistically paying any more than $200 per month towards his debts, after he covered his living costs and maintenance for his children, would be a stretch.
This was not enough for a realistic proposal, so Robert declared bankruptcy and based on his net income, he paid $168 per month for 21 months, after which his debt was discharged and he started over.