‘Mormon Wives’ star Miranda McWhorter’s $12,849 credit card mistake. Here’s how to avoid the same trap

Core Insights - The case of Miranda McWhorter illustrates the rapid escalation of financial issues when debt collection lawsuits are ignored, leading to a default judgment of $12,849 against her [1][2] Group 1: Debt Collection Trends - Debt collection lawsuits in the U.S. have surged back to pre-pandemic levels, reaching approximately 4.7 million cases per year [3] - Many consumers fail to respond to debt lawsuits, resulting in default judgments becoming extremely common, which complicates future negotiations [4] - Creditors are increasingly utilizing AI and automation to identify overdue accounts and file lawsuits at scale, making the process faster and cheaper for them [4] Group 2: Consumer Behavior and Impact - The rise in credit card debt is significant, with U.S. credit card balances increasing by roughly 5.75% from the previous year, driven by inflation and rising interest rates [6] - Consumers often experience anxiety and confusion when served with legal papers regarding debt, as evidenced by reactions shared on platforms like Reddit [5]