I'm Being Sued For Not Paying My Credit Cards!

[Music] let's go out to george in gainesville florida what's up brother george hey how you guys doing thank you for taking my call you got it man what's up hey so i just found out that i'm being sued from a debt collector and i just have no idea how to approach any of this there's already a hearing date for next month on the 11th um i'm just pretty scared i'm not gonna lie i know it's not gonna be the end of the world but i just don't know what to do that's pr well i'll let george walk you through the letters it's probably not a true hearing date but why why aren't you paying off your debts well so this that was about it was it's a best buy credit card from about two and a half years ago probably um why didn't you pay it off say it again why didn't you pay it off um just straight up i just couldn't afford it i i'm 24 now i pretty much had to grow up on my own at the age of 18. so everything's been at my own expense almost kind of paycheck to paycheck since then okay um and i was making the minimum payments every month and then cobra kind of hit my hours were affected a lot i made eight thousand dollars last year all of last year um and i was still able to make it paying my rent and utility bills but i just that was it i couldn't really pay any of my credit card stuff and what other debt do you have just so i have the credit card debt i have a student loan debt and uh car debt okay hey we're going to get into your question okay but but like can we just pretend you and me and george are sitting on a table having some nachos just talking so i can be direct with you yeah yeah why are you making 8 000 in one calendar year during one of the hottest job markets in the history of this country yeah i just um i didn't have a car until this uh past february and um i just to be honest with you i just couldn't find music transportation so i stuck i was looking at publix for about five years i don't think george i don't think i believe that because i've had seasons in my life where i have to ride my bike to work i was married with a kid but my truck broke like you figure it out when you find yourself up against the wall yeah like what what's that what's the hold up man you're worth more than eight thousand dollars you're worth five times pretty much now i'm actually starting uh january this past january i just started working full time for my church um so that this is the first time and so what do you make now i make um 17.50 an hour okay well are you done making excuses because we can't help you until you're ready to clear this up man yeah i mean yeah yeah okay the civil suit like you mentioned is not the end of the world but we do have to get it in writing so i need you to actually well let's tell what happened here so a company bought bad debt for pennies on the dollar from best buy okay they sold you owed them how much how much was the original debt i don't know what they're original but the amount they have on all the papers is 2700 okay so you probably owed 1500 bucks they sold it for 500 and then they've tacked on a whole bunch of fees and interest and they say send you a letter and say give us 2700 that's what they're doing okay so they've bought this debt for way less than 2700 bucks and now their goal is to see how much they can extract from you okay yeah so george starting today number one debt is off the table do you have any more credit cards that are open no okay we're not going to touch debt ever again yeah agree with that clearly it's not your friend it's burnt you too many times in the past so going forward we need to actually communicate and take our head out of the sand and go all right this sucks i don't like where i'm at but i'm going to communicate openly and honestly with this debt collector and say i need this in writing i need you to confirm the debt confirm the amounts the age of the debt and if they can't produce that then they they have to throw it out legally but they probably will say here it is best buy here's the purchases you made here so much debt here's the fees and then we go okay this sucks and now i have to go figure out a way to pay for this or do you have five hundred dollars no it's 2700 you have 1500 bucks cash what kind of car do you drive i have a 2014 kia forte okay okay what's the loan on that um it was about 9.99 out the door yeah 9900 and i paid 4 000 um down payment so you have 6k on the loan uh a little bit under 5 probably now okay so we're going to list all these that smallest to largest you got to deal with this one in collections first because the law is involved this is an ankle biter but beyond that if they're willing to settle let's say 1500 bucks that's great and they may go all right we're gonna drop the hearing date this guy's actually willing to pay us some money yeah and that's if you call them and say i'll give you five 1 dollars today that's what i've got or i've got 980 that's probably gonna be too too much of a cut for them but i got 980 bucks i got cash i'll do it right now you guys send me a contract in writing that says this will guarantee this and i will get you paid under no circumstances do you give them access to your checking account they'll say i'll do it but you got to give me your checking account number no way if they call them and ask them if they will settle this thing my friend anthony o'neil used to work collections and he said it's best to call at the very end of the month but you may have a hearing date before that so um but call them and just say i'll give you this much i'll give you 25 i'll give you 50 i got cash and i'm gonna make this thing happen okay and then go ahead george no i mean that's this is the strategy here there's no shortcut george we just have to pay off our debts that we went into and learn from the mistakes so what do you do for the church george i work for facilities so just maintaining the church in a general sense what are your hours i work for i'm a full time so i work 40 hours a week now what are your hours eight to five oh uh seven to three monday through friday seven to three how old are you 24 24. you've had a rough go of it huh childhood was hard yeah okay listen to me super carefully you're at a crossroads right now and i spent my career working with young people okay i've i'm looking directly at you you're at a crossroads right now and you have an opportunity to change everything your family tree changed the lives of grandkids you've never met yet you have an opportunity to work like a maniac for the next 36 months when you get off your job at three you go directly to another job and you get done with that job you're gonna deliver pizzas or drive uber until 12 o'clock at night you're gonna get up next morning do it again and you're gonna get yourself something you've never had which is financial margin and then you're gonna start doing things you've never done before like sleep the whole night and be able to pay your rent and not worry about it be able to take somebody out on a date and just pay for it not worry about it does it sound good yeah it's a different life but i also tell you this if you just park it you get done at three o'clock and you go home and play video games you're gonna find yourself right back where we were that's my promise to you i've just met too many guys in your situation you've got a magic moment here dude but it's going to take you grinding and working grinding and working writing working so here's the deal george and i are gonna are gonna shoot you out of this thing with jet fuel okay i'm gonna give you a year of uh ramsay plus i'm gonna send you a copy of total money makeover and i'm gonna send you the every dollar app for a year i've just taken away every excuse you have and i want you to watch these videos and if you've got some buddies that would watch them with you that'd be even better is that fair yeah thank you thank you very much could you go through it with some people at the church and say hey who wants to do financial peace university with me because you can't do this stuff alone you got to have people in your corner

Channel: The Ramsey Show Highlights

Views: 70,452

Keywords: the dave ramsey show, budget money debt cash, real estate, insurance, how to make money, dave ramsey, save, credit card, compound interest, buying house, buy, snowball, I'm Being Sued For Not Paying My Credit Cards!

Id: kU4oqDmsp88

Length: 8min 44sec (524 seconds)

Published: Mon Sep 12 2022