“‘Mormon Wives’ Star Miranda McWhorter’s $12,849 Credit Card Mistake. Here’s How to Avoid the Same Trap

Miranda McWhorter May Seem to Live a Brilliant Life on the Reality TV Series The Secret Lives of Mormon Wivesbut a recent court ruling shows how quickly everyday financial problems can escalate.

According to Us Weekly, McWhorter has not responded to a lawsuit filed by Discover Bank in September 2024 regarding an unpaid credit card balance. As a result, a Utah court entered a default judgment ordering her to pay $12,849. (1)

Consumer protection experts warn that ignoring debt collection lawsuits often leads to default judgments, which can allow creditors to sue for wage garnishment, bank account levies or real estate liens, depending on state law.

McWhorter’s case is a classic example of a common but costly mistake: hoping that a debt lawsuit will go away on its own.

When a creditor sues over unpaid credit card debt, the clock starts ticking. If the defendant does not respond within the time period set by the court (usually a few weeks), a default judgment may automatically be entered. This appears to have happened in McWhorter’s case.

According to Pew, debt collection lawsuits in the United States have returned to pre-pandemic levels, reaching as many as 4.7 million cases per year.

Research shows that many consumers are unresponsive, making default judgments extremely common. (2) Once the judgment is rendered, negotiation becomes more difficult and more costly.

McWhorter’s case also reflects a growing trend of aggressive debt collection.

The New York Times reports that creditors are increasingly using AI and automation to identify delinquent accounts and file lawsuits at scale, making consumer lawsuits faster and less expensive. (3)

For consumers, this means that lawsuits can arrive more quickly, sometimes with little warning, especially when balances are sold to third-party debt buyers.

One Reddit user said he was “panicking” (4) and didn’t know where to turn after being sued over a five-figure credit card balance – a reaction many consumers feel when they receive legal documents.

Read more: Use these 8 financial rules by which Warren Buffett lived get rich (and stay rich)

McWhorter’s legal troubles come as credit card debt rises nationwide. U.S. credit card balances are up about 5.75% from last year, according to a CNBC report based on Federal Reserve data (5), driven by inflation and rising interest rates.

In the meantime, Mormon wives became a smash hit, with season three, premiering on November 13, drawing audiences that rival some of Kardashian’s biggest seasons and generating widespread buzz on social media.

This contrast between McWhorter’s success and ordinary debt problems shows how common financial stress is and how quickly it can fester when ignored.

McWhorter’s $12,849 judgment isn’t just celebrity gossip, it’s a warning. Credit card debt doesn’t go away and lawsuits can move quickly.

If you’re struggling with high debt or tight budgets, here are several key lessons:

Never ignore a lawsuit. Even if you can’t pay, responding preserves your rights and can prevent an automatic judgment.

Communicate early. Creditors can agree on payment plans or settlements before a case escalates.

Consider consolidation. Moving high-interest balances to a lower-rate debt consolidation loan can reduce monthly payments and prevent accounts from becoming delinquent.

Know when to ask for help. If the debt is unmanageable, a bankruptcy attorney or nonprofit credit counselor can clarify your options.

The most important lesson: open the mail, respond on time and ask for help before the court intervenes.

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We every week (1; Bench (2); New York Times (3); Reddit (4); CNBC (5).

This article provides information only and should not be considered advice. It is provided without warranty of any kind.