Feeling stuck after dealing with PDS debt and 5 Lakes…

Back in March 2024, I reviewed my debts, including credit cards and personal loans, which totaled $54k. Even though I was making regular payments, I realized I was in over my head.

I signed up with PDS Debt, hoping they’d help. I agreed to a $700/month plan, but since then, there’s been no real progress. Every time I reached out, they just said they were negotiating. I sent them all the paperwork they needed, but still, nothing happened.

Then in November, one of my creditors sued me. PDS only helped with the initial court correspondence and refused to assist with the discovery phase, which had 23 questions I had to answer on my own.

My credit score dropped from the high 700s to 540. I expected a temporary hit but thought they’d at least help. Instead, they’ve made things worse. I canceled this morning, and they’ll return my $6k. Now I have to hire a lawyer, which will cost $3k, and might even have to file for Chapter 13 bankruptcy.

This was a huge mistake.

I’m a lawyer (not your lawyer). You’re lucky if you get that $6k back. Debt settlement reps often mislead people just to earn commissions. Look for a consumer lawyer through NACA (National Association of Consumer Advocates). Since your credit is already damaged, Chapter 7 bankruptcy might be worth considering. Some creditors never negotiate with companies like PDS, so they likely saw this coming. Keep following up on that $6k refund.

@Jules
Haha, can I hire you? This is my first time dealing with something like this, and I’ve clearly messed up. Thanks for the advice!

You didn’t mention your income, but I’d suggest at least having a free consultation with a bankruptcy lawyer before paying for help with the lawsuit.

Abi said:
You didn’t mention your income, but I’d suggest at least having a free consultation with a bankruptcy lawyer before paying for help with the lawsuit.

Thanks! The lawyer I found does handle bankruptcy too, so that’s a relief.

You made the debt, so you should pay it. Instant gratification and FOMO probably got you here. Time to make sacrifices and live within your means.

Lin said:
You made the debt, so you should pay it. Instant gratification and FOMO probably got you here. Time to make sacrifices and live within your means.

While people make bad financial choices, companies like PDS take advantage and make things worse. I’ve been in collections before, and I’ve seen this happen often. They promise to help but end up leaving people worse off. This isn’t just about paying the debt; it’s about companies misleading people and not delivering what they promise.

@Ashton
Thanks, I completely take responsibility for my choices and being naive (is that even a word I can use here?).

Lin said:
You made the debt, so you should pay it. Instant gratification and FOMO probably got you here. Time to make sacrifices and live within your means.

Fair point, but I was misled. It wasn’t about instant gratification. I was already paying off my debts monthly. PDS convinced me they could help reduce the overall amount, so I went for it. I own up to my mistakes, though. Thanks for your response.

Lin said:
You made the debt, so you should pay it. Instant gratification and FOMO probably got you here. Time to make sacrifices and live within your means.

You’re right, but saying this now isn’t helpful. It’s like telling someone to stop speeding after they’ve already crashed.

@Davin
True, it’s not helpful and feels like piling on. But I get it—this is common for forums like this.

@Davin
Fair point. I’m just hoping others read this and avoid the same mistakes. It’s like touching a hot stove—some learn by watching, others have to get burned. The ones who get burned usually cry about it later, just like people with student loan debts. Many used their loans for vacations or unnecessary expenses and now expect forgiveness. Life isn’t fair, and others shouldn’t have to pay for your mistakes.