Q. I've borrowed against my monthly income with a payday loan company. At first I thought I would be able to manage the payment every 14th day. But I have no money left to pay other bills and meet these payday loans. I've tried borrowing money from my financial institution but due to my credit score the loan was declined. I had planned on using the money to pay off the payday loans because they are really killing me. I don't know how to handle this. Any suggestions?

A. Yes. We know how easy it is to become trapped in an endless cycle of payday debt. You borrow what seems to be a small amount of money with every intention of paying it back the next time you get paid. But when your paycheck arrives there just isn't enough to do that. You take out a second loan to pay off the first loan and your debt gets bigger because of the substantial fees the payday loan store charges. Do that a few times and you're suddenly looking at a balance that's so big there's no hope of paying it off.

We recommend a smart, reputable credit counselor that belongs to the National Foundation for Credit Counseling. You can find one near you by going to the NFCC's Web site. It has been in business a long time and has a good track record of helping people. You can locate a counselor near you or go through the process online. They can negotiate a with your creditors to write-off part of your debt, waive fees, establish a reasonable repayment plan and get you back on your financial feet.

This is not an instant solution, but it is a good and important first step that you have to take on the road to back financial stability. The fees will be very modest. Many NFCC members charge nothing to review your finances and less than $100 to establish a debt repayment plan.