Sued Over Small Amount

Audra has been sued by a credit card company, but the amount is so small, Dave thinks a few months of gazelle intensity will clean it up.

QUESTION: Audra has been sued for a credit card for $2,900. They make $60,000 a year. The attorney said if they do monthly payments, it automatically goes to a judgment. Is that true? Dave says it depends, but offers a very simple and surprisingly quick solution.

ANSWER: Going to a judgment is up the attorney. He’s just saying that he’s willing to do an agreed order where you pay payments on the judgment. As long as you pay those payments, you won’t have to worry. But if you miss a payment, they’ll garnish your wages almost instantly. Have your husband pick up an extra job for a few months to get this taken care of. You’ve been sued over only $3,000. It’s not like it’s $50,000. Let them do the judgment and a payment plan, then get on a budget, get some extra work and knock it out.