I Just Started Working With Take Charge America But Chase is Suing Me. – Mae

Steve Rhode — Tue, 03 Nov 2009 16:43:14 +0000

“Dear Steve,

Just received a summons from Chase to sue me for a debt that I owed. I notified them on last week about a hardship program that I just recently joined. I am unemployed. TakeCharge America has combined all my debts and will be making one payment from the unemployment benefits that I received. I will answer this court summons but what else can I do? I only have unemployment for income.

I thought I was being proactive by trying to pay them thru this company. If this doesn’t work, should I just file for bankruptcy? I’m at a lost.

Mae”

The Answer:

Dear Mae,

I took a look at the Take Charge America website and can see they look like a traditional credit counseling group. So I am assuming they placed you in debt management program.

What strikes me first is that you are enrolling in a debt management plan on only unemployment benefits. Do you have any other income that you think will be steady past the unemployment benefits? I’m concerned that launching into a long-term debt repayment strategy based on short-term only income is simply setting yourself up for failure with the DMP.

I suspect the debt situation had been brewing for a while. Chase doesn’t suddenly sue people just because they enrolled in a credit counseling program. You probably also have other debts you’ve accumulated as well and Chase is just the most pressing one at the moment since they are suing you.

What we need to focus on now is to readjust your priorities and not get freaked out about the debt situation. I know, easier to say than do. The priority right now is to make sure you can meet your necessary monthly obligations on what little income you have coming in. Next, if you have any money leftover after that you’ll need to save at least $50 a month in a savings account to start to build an emergency fund. Then, and only then, you need to look at how much money you have leftover to use for debt repayment.

In any debt repayment strategy we also need to consider the likelihood that it will achieve the goal of actually reducing the debt and accomplishing the goal of eliminating this pain for you.

So how much debt do you have in total?

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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I Just Started Working With Take Charge America But Chase is Suing Me. – Mae

The Answer:

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