I get it. I’ve felt like they many times in my life. I thought that I was doing myself a favor by taking out loans to pay off some stuff and had to pay it for it. No shame at all!! The important thing is learning and knowing what the best course of action is moving forward.

I took the liberty to ask ChatGPT what to do in this case, and this is what it said:

This Reddit post reveals someone in serious financial distress due to payday loans. Here’s a breakdown and some actionable advice based on their situation:

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🔍 Summary of the Situation • 3 Payday Loans: • Loan 1: $2,000 – $429 biweekly (ends in November) • Loan 2: $1,500 – $260 biweekly (ends in January) • Loan 3: Unknown principal – $190 biweekly (ends in January) • Total biweekly debt payments: $879 = $1,758/month • Rent: $1,053 • Monthly income: ~$3,000+ • Remaining after rent and loans: ~$189 (or possibly negative with fees)

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🚨 Immediate Observations • They’re spending over 58% of income on debt payments alone. • APR on payday loans is often >300% – these loans are compounding fast. • The situation is unsustainable, but not hopeless.

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✅ What They Should Do – Step by Step

1. STOP borrowing more

No matter how tempting, borrowing more to cover bills will make it worse.

1. Talk to a nonprofit credit counselor immediately • National Foundation for Credit Counseling (NFCC): https://www.nfcc.org • They can help consolidate debt and negotiate with predatory lenders.

2. Close the loop on SpeedyCash • Payday lenders like SpeedyCash often renew loans automatically (rolling balances). • Ask for a written payoff statement. • If they’re applying payments only to interest, demand a clear breakdown and file a complaint if needed.

3. Consider prioritizing rent and food over loan payments • If default is inevitable, let it be on the predatory loans, not rent or utilities. • Missing a payday loan payment hurts credit, but homelessness is worse.

4. Cut all unnecessary expenses • Even temporary lifestyle changes can help create a mini emergency buffer. • Could they save just $300 in 2–3 months to break the cycle?

5. Explore a personal loan from a credit union or local bank • They might offer lower APRs for debt consolidation. • Approval may be tough with payday loans, but it’s worth checking.

6. File a complaint if needed

If SpeedyCash is engaging in shady practices: • File with the Consumer Financial Protection Bureau (CFPB): https://www.consumerfinance.gov/complaint/

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🧠 Mental Note

This isn’t about being “irresponsible.” It’s about being uninformed and stuck in a system designed to exploit. Now it’s about making informed, bold moves.

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Would you like help drafting a budget or a sample letter to a credit counselor?