Interrupter CheckmarkInterrupter IconFacebookGoogle PlusInstagramGroupRamsey SolutionsTwitterYouTubeExpand MenuStoreCloseSearchExpand MenuBackStoreSign in

Ask Dave

The Workings Of The Judgment

Shelly needs to know from Dave what will happen behind the scenes on her American Express judgment.

QUESTION: Shelly wants to know the best way to settle a debt from a judgment. She was just sued for a $21,000 American Express debt but it hasn’t gone to court yet. It’s part of her $70,000 in debt, and she was told she could pay it out over 36 months. What does she do about this?

ANSWER: They have sued you, and it will go to court, and the judge will give you judgment when he bangs the gavel. There is a lawsuit that you will lose, and then the judgment comes.

With the offer, your credit is trashed. You want to pay this off early, and when you’re making money again, pay it down to a certain balance and offer them a settlement on the rest, if you have that much cash. Get that in writing, and then give them the money.

You cannot miss one of those payments or be the slightest bit late. As soon as you miss one, they will attach assets and clean out your bank accounts and make your life miserable. Pay them five days early. As far as the rest of your debt goes, do the same things.

Get on a beans and rice budget and never buy anything again unless you can pay for it.