Using AI to respond to a lawsuit might sound unconventional, but for one couple dealing with an old debt, it’s been enough to keep things from escalating, at least for now.
That situation came up on “The Ramsey Show” recently, when a caller explained she’s been relying on ChatGPT to help respond to legal paperwork tied to a debt that’s been lingering for years. “We’ve been using chat AI to kind of guide us through and so far it’s worked,” she said. “We’ve been able to prolong it a little bit.”
Lisa, from Ohio, said the issue traces back to a roughly $50,000 loan taken out in 2017 to consolidate debt. Things started to unravel around 2020 after she had a baby and had to leave her job, cutting the household down to one income.
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“We missed a couple of payments and then all of a sudden they just sold it off,” she said. The debt eventually landed with a collection company and, years later, turned into a lawsuit.
Lisa described being served papers around the holidays with only 20 days to respond. “I think they were hoping that with the holidays we wouldn’t be able to find a lawyer and we wouldn’t know what to do,” she said.
Without the money for legal help, Lisa said she turned to ChatGPT to draft responses and figure out next steps. The approach helped them respond on time and request documentation from the collector, even though much of what came back was heavily redacted.
Hosts Rachel Cruze and Jade Warshaw focused less on the legal back-and-forth and more on the couple’s current financial position.
Lisa said their household income is now about $204,000, with roughly $58,000 in other debt and a mortgage of $175,000 on a home she estimated is worth around $450,000.
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Cruze pointed out that old debts are often sold multiple times and handled by collectors who are far less intimidating than they seem. “You’re dealing with someone who’s sitting in a cubicle,” she said, noting the high turnover in the industry. “It’s someone who honestly has probably the worst job on the planet.”
Instead of continuing to stretch things out, the hosts urged Lisa to focus on resolving the debt quickly. Because the account dates back several years, they suggested the collector might accept a reduced payoff.
“If you can get maybe $15,000 and settle this,” Cruze said, adding that collectors in these situations often don’t expect to recover the full balance.
To speed up that process, Cruze suggested a more aggressive move: selling one of their cars.
Lisa said one vehicle could likely sell for about $20,000 while they still owe roughly $15,000. That gap could free up several thousand dollars immediately.
“I’d sell one of these cars and be done with this today,” Warshaw said. She suggested buying a cheaper replacement and using the freed-up cash, along with tighter budgeting, to build a lump sum for settlement.
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The message was that short-term sacrifices now could eliminate a long-term burden.
For readers dealing with long-standing debt or facing legal collections, consulting a professional financial advisor can help create a plan to resolve obligations and avoid similar issues in the future. Services like Finance Advisors can guide budgeting, payoff strategies, and long-term planning.
Warshaw also addressed the emotional toll. Lisa became overwhelmed early in the conversation, and the hosts noted the debt has been hanging over her for years.
“This has been going on long enough,” Warshaw said, encouraging decisive action within the next 30 days.
While AI helped the couple stay responsive, the hosts were clear that delaying the process won’t solve it, and that only taking control and settling will.
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This article A Caller Tells 'The Ramsey Show' That They're Using ChatGPT To Fight A $37K Lawsuit. 'So Far It's Worked' originally appeared on Benzinga.com
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