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

“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”

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.

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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.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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




About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

25 Comments

  • Debt management compinies cannot help you change payments on you HELOCs or any secured loans you will still have to pay those as contracted. They do not help with student loans either. So you pay them a fee whether profit or non profit to take your monies from you to pay ther creditors and although they do not report to the credit bureaus it may or may not adversely affect your credit rating and score as the creditors will close all of your cards and will also not accept your porposed payment unless they think it is enough. In the mean time you are without credit cards and you are barely able to make it for 3-5 years. You should negotiate with your creditors directly and ask for an internal hardship program especially if unemployed on disability, health failing or child support. The whole idea of a debt management program and how they survive is to get you on a program so that the creditors still use their services. Call your creditors yourself and negotiate your own program. Is it worth you losing everything to have someone else pay your bills for you like you are a child and close all credit cards with nothing else to fall back on in an emergency?

  • Debt management compinies cannot help you change payments on you HELOCs or any secured loans you will still have to pay those as contracted. They do not help with student loans either. So you pay them a fee whether profit or non profit to take your monies from you to pay ther creditors and although they do not report to the credit bureaus it may or may not adversely affect your credit rating and score as the creditors will close all of your cards and will also not accept your porposed payment unless they think it is enough. In the mean time you are without credit cards and you are barely able to make it for 3-5 years. You should negotiate with your creditors directly and ask for an internal hardship program especially if unemployed on disability, health failing or child support. The whole idea of a debt management program and how they survive is to get you on a program so that the creditors still use their services. Call your creditors yourself and negotiate your own program. Is it worth you losing everything to have someone else pay your bills for you like you are a child and close all credit cards with nothing else to fall back on in an emergency?

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