My dad took out a payroll loan to cover his credit card debt, and now almost 40% of his salary is being deducted every month. Is that even normal? How does he get out of this mess because there's not enough money left to pay basic bills.
Payroll-deducted loans can legally deduct up to 35% of the salary, but some banks push it higher than that and people end up accepting because they're desperate!
Your dad's in a tough spot because when they deduct that much there's basically nothing left to live on, and then he gets stuck in a cycle of taking out more loans to cover the basics.
The best way out would be for him to try negotiating with the bank to refinance it in fewer installments or look for a personal loan with better rates to pay off the payroll-deducted loan, but he'd need someone who really knows about finances to help with that because it's easy to fall into something even worse.
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