Can You Take Out Loans to Pay for Child-Support Arrears?

Taking out a low-interest loan to pay child support can be beneficial, particularly in states that impose high-interest rates on back child support debts, advises Money Crashers. Pay back child support as soon as possible to prevent penalties, which could include jail time.

Failing to pay back child support can result in the loss of a drivers' license or passport, wage garnishment and seizure of tax refunds and other property, advises Money Crashers. In addition to obtaining a loan to pay the debt, consider requesting equitable forgiveness of the debt or suspension of the interest, petitioning for a more manageable payment schedule or negotiating a lump-sum settlement to the custodial parent.