Payday Loan Debt Stories: Mike And Pam’s Adventure!

payday loan debt storiesMike and Pam are just a regular couple living in Minnesota and enjoying the American dream today, but not long ago they wrote their own chapter in the book of payday loan debt stories, and it was a crazy story!

Sadly their story is not unique and although a bit extreme these extreme stories are becoming the norm simply because people are not informed when it comes to these types of loans and the traps they can set.

It all started with one simple $500.00 two week payday loan that turned into a two and a half year nightmare!

Let’s take a look at their story and see what happened!

[Click here to see how to get out f your own Payday Loan Adventure Story today!]

Mike And Pams Story

car wont startPam woke up one morning in the middle of winter and went out like she always did to start the car and let it warm up before she ran her two kids to school and went to work herself at the local Wal Mart.

When she turned the key to start the car nothing happened!

She called her local repair shop and had the car towed into their shop while making arrangements for getting the kids to school and herself to work.

To keep the story flowing it ended up being a bad starter on the car and a repair bill of just under 500 bucks.

Mike and Pam had no savings and their credit was not in good standings and they needed that car back as soon as possible so they chose to get a 2 week $500.00 payday loan to pay for the repairs and towing.

The $500.00 loan would cost them $150.00 in interest to borrow the money for two weeks, but hey, they needed the car and they could get the money the same day and thus their car problem would be solved.

Editors Note:

This happens about every minute in the United States.

If the story ended with the person or persons involved just paying the loan totaling $650.00 ($500.00 for the loan and $150.00 for the two weeks of interest) off in full 0n the date the loan was due there would be no more story.

It rarely ends this way though, and this was just the beginning of the story for Mike and Pam!

One Loan Then two …….

Dollar signThe car worked perfectly and both Mike an Pam thought they had been lucky to be able to borrow the money they needed so quickly!

Yes, it was costing them $150.00 to borrow that $500.00 for two weeks but they needed the car back right away so they were OK with the terms.

Two days before the loan was due, you guessed it, the car broke down again, this time it was the timing belt, and the quick fix for this was about $1500.00

Mike and Pam could not believe their luck, not only was the first loan due in two days, now they needed another $750.00 to bail the car out again!

Tom did some research and found out he could extend the first loan by just paying the $150.00 interest charge, and that he would be able to take out a second payday loan for $1000.00 and kick in the difference from the saved money on the first loans roll over to bail the car out.

Editors note:

While Tom did get the car back from the second repair, he has now spent $150.00 to borrow $500.00

The outstanding balance of the rolled over loan at the original total of $650.00 (When you roll over a loan you pay the interest and they extend the original loan for two weeks and re-add the interest, thus the total is the same as the original loan) is due in two weeks.

The new loans balance $1000.00 for the loan and $500.00 to borrow it for two weeks) is $1500.00 and it too is due in two weeks.

Add the two together and the total is $2150.00!

Can you see where this is headed?

Out Of Control Debt Cycle

Tom and Pam simply did not make enough money to pay these two loans off in two weeks and thus starts the rollover game, and finally, they default on both of these loans.

Statistic say the average couple rolls over their loans about 4 times before they either pay them off or default on the loans and that is exactly how many times Mike and Pam rolled these two loans over, and then they defaulted on them, but not after paying out several thousand dollars in interest.

This story played out with a happy ending because mike and Pam contacted us to resolve their payday loan debt problem and we made them smile again but before they found out we could help them they went through all the horrors of out of control payday loan debt.

They had defaulted and destroyed their bank account because these loans were set up as automatic withdrawals from their checking account and it ended up being in the negative and finally closed and turned over to collectors.

The payday loan collectors made their lives a living hell with phone calls at home and at work, all the typical problems that go along with standing debts.

They Found Help

debt helpWhen Mike an Pam came to us for help they were n legal trouble, had pawned everything they had of value and borrowed from family and co-workers.

They were out of options, and thankfully a friend pointed them our way.

After we renegotiated the amounts they owed with the loan company, (we saved them about 63% off their outstanding balance) we set them up on an 18-month repayment plan and today they are completely out of payday loan debt!

They wanted us to share their story to let people know they are not alone when going through this kind of a mess, and help is available!


With a little knowledge of how hi interest short term loans work Tom and Pam could have avoided most if not all of this story!

We at Help With Payday Loan Debt help people rewrite these stories every day and we hope if you ever need help with this kind of debt you give us a call!

Now it is your turn!

Any questions,  comments or stories you may have can be left in the comments section below and we will address them promptly!

[Click here to see how to get out f your own Payday Loan Adventure Story today!]

18 thoughts on “Payday Loan Debt Stories: Mike And Pam’s Adventure!”

  1. Wow, what a story. Thanks for sharing! 

    Debt is one of those things that you always assume will never happen to you…until it happens to you. I’m hoping to avoid it at all costs though (no pun intended). 

    What would you say they SHOULD have done in the first place when the car broke rather than taking out the loan? Was there a better alternative? Thanks again for putting together this piece. 

    1. Hi, Danny!

      I would have went to a pawn shop or fend or anything that did not rist acumulating more debt so quickly. Pawn shops charge high interest on extended loans just like payday loans do but the difference is with a pawn shop when you default you loose your item or items, unlike a payday loan which continues to grow your debt substantially!


  2. Great site! Very informative and helpful. I know a lot of people already doing payday loan and their stories are sad to say the least and very frustrating. It seems like once you start with one loan you are in for life.. it’s pretty hard to get out of the debt due to all the fees and hidden fees. That’s a crazy and hopefully more people can read more of these posts and be more informed. Thanks for sharing.

    1. Hi, Andrea!

      Thanks for checking in!

      I agree they do end up burying you in debt but that is why we are here, to even the playing field!

      If you or anyone you know may need help with this kind of debt give us a call and we will get you out of it!


  3. Hi Shawn:

    Payday loans sound like a very big, awful trap to me. First of all, the 30% interest is robbery – pure and simple. And like you say, people don’t often pay it back in time and therefore accumulate additional debt.

    Would you say there’s a large percentage of people who use these services? My guess is that in this day of soaring costs and stagnant wages, more and more people are falling pray to payday loans.

    Thank God there are people like you that help people crawl out of this spiral of debt!

    1. Hi, Christopher!

      Thanks for stopping by and I agree, the interest is short of criminal.

      These loans are extremely popular because anyone with a job can get one, even if they can not afford to pay it back!

      Maybe with the economy shift here is the USA this will slow down these types of loans, we will keep our eyes open!


  4. This story resonated with me, as I remember at one time I was sinking into debt and payday loans were making that sinking happen faster than the debts I owed to credit card companies. 

    They can be a quick fix, but in the long term I don’t believe there is any lasting power in the loan. I know others who have gone this route and completely left the loan and then they have been dinged from the credit bureau for it.

    How do you help to become debt free, because I am very interested in this. 

  5. This story rings so true with me!  It is very scary to think of things breaking down that you need.  One year I needed an alternator and starter for my car, my furnace went out and then a few months later my swamp cooler also went out!  It was definitely a year of woes.  I had a great above average paying job, at the time, but I still considered taking out payday loans to make ends meet.  Thankfully, my parents gave me a loan (with no interest) and I was able to pay them back after a few paychecks and not be late on any of my normal bills.  It is a very scary world we live in that we can go into serious debt just over a few thousand dollars!  Thank you for helping out those of us who may get in over our head at times!


    1. Hi Kara!

      You said a mouthful when you said this is a very scary world we live in, it sure is!

      Glad you found a way out of trouble without falling into one of these traps!

      If we can ever be of service to you or any of your friends or family know we are here and ready to help!

      Thanks for stopping by and keep on living the dream!


  6. My stomach turned just reading this and I am so pleased it had a bit of a happy ending – although nothing will ever removes the scars of the stress this experience must have left on them.

    Debt is bad enough but when you have loan sharks hovering (they should be called loan vultures) it must be 20 times worse.  That deadline must race at you at an incredible speed and there is no way to jump clear of it. It’s a bit like the old Chicago/mafia days (and I have only ever seen movies about them) but now of course it is legal!  And that is where the problem lies.

    Hopefully Pam and Mike will learn and put a bit aside each payday for emergencies and savings.

    I’m still getting goose bumps even after writing this at the thought of the strain on them.

    1. Hi, Lawrence!

      I know, it is intense waking up with worry over how to pay your bills.

      We do try to teach as we help and part of our job is to do what we can to help these people avoid these types of situations in the future.

      Thanks for stopping by and sorry for the   goose bumps 🙂


  7. I’ve always been skeptical when it comes to payday loans and this is for that exact reason! I’ll never try any of these loan sharks because you’ve just proven my theory that you have to be so careful because they know how to play the game better than normal people like you and I and they will always take whatever they can from us. It’s crazy that couples roll over their debt at least 4 times before finally paying it off, but much more than they initially borrow that’s for sure! What a great article my friend and definitely an eye opener. Thanks a lot.

    1. Hi, Brandon!

      I know, it is crazy, right?

      Just know that we are here to help if any of your friends or relatives end up in this type of situation because statistics say one of them or more will.

      Thanks again for stopping by!


  8. Ugh, I swear nothing gets me angrier than hearing about how people are taken advantage of through payday loans!  I used to work in a low-income school district and MANY parents had fallen into this trap!  I’m so glad to see there are alternatives to help them out of their hole!  What a great process and great service to be providing.  I’ll share this with my teacher friends and let them know to give it out to their parents.  Thank you for all your work!

    1. Hey Don, thanks for stopping by and passing the word!

      I bet you’ve seen your share of it at your old job!

      keep us in mind if you should run into anyone in need of help!


  9. The horrible thing about payday loans is they feed on the people who need the most financial help. In the end, they just make the situation worse. This story is a great example because they just needed their car fixed so they could live their life, but it turned into a financial nightmare. My sister had to file for bankruptcy due to payday loans, so they are no joke.

    My question is this: Are there any alternatives? I get that we can all come to you for help once this spirals out of control, but are there any options if you don’t want to go the payday route at all? What could this couple have done to get the car fixed without resorting to payday loans?

    1. Hi, Teresa!

      They say they say the road to hell is paved with good intentions and I quote that because our best intentions sometime end up our worst nightmares, and aways out of the blue it seems!

      Yes, there are many different options for dealing with life’s emergencies, and some can be immediate, while others take a bit of time to build up, like an emergency fund.

      I guess the best advice to give is always weigh your options before signing on the dotted line. If some of these people had gone to a pawn shop and got the money the worst that might have happened is they loose their merchandise, but they too have their traps.

      Check out our Free Resources page for some ideas of what to do in an emergency!


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