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House speaker confirms financial woes

Public records show Minnesota House Speaker Kurt Daudt has been sued by debt collectors three times in the past year over thousands of dollars in credit card charges.

ST. PAUL, Minn. - Public records show Minnesota House Speaker Kurt Daudt has been sued by debt collectors three times in the past year over thousands of dollars in credit card charges.

Minnesota Public Radio News also found Daudt was late paying taxes on land he owns in Isanti County. The news organization maintains that the speaker paid those taxes only after learning that MPR was working on a story about his financial woes.

On Tuesday, the state's top Republican leader responded to the report and concerns he'd received preferential treatment to help manage his debt.

"It did take me some time to rectify the situation," Daudt said, adding, "It really makes me fully aware of the struggles that Minnesotans have, and I -- as a legislator -- am not immune to those financial struggles as well."

"I know that I received no special treatment because I paid every dollar fully. I paid the entire debt in full," he said, also adding that failing to pay taxes on his Isanti property was due to an oversight -- not "financial difficulties."

Daudt also issued a statement Tuesday saying he has struggled as a result of the recession, lost his job and faced credit card debt.

"Like many Minnesotans who struggled as a result of the recession, I lost my job and faced credit card debt," Daudt said in the statement. "This issue is now resolved and there is no outstanding debt. When I stand up for middle-class families who are feeling squeezed, it is not a talking point, it is real life."

One of the debt cases was scheduled for a court hearing Monday, a day before the Legislature begins its election year session. MPR reports the two sides worked out a settlement. Daudt's lawyer would not disclose details.

In the other two cases, default judgments were entered against Daudt. A short time later, a firm that that lobbies at the Capitol urged a judge to wipe away the rulings.

Meantime, the Program Director at Lutheran Social Services Financial Counseling said Daudt is hardly alone in being challenged by credit card debt.

"We see 10 thousand people a year in the work that we do," said Darryl Dahlheimer with LSS.

Dahlheimer noted of the one billion active credit cards in America, only about half are paid in full each month. It's likely, he said, others can find themselves in a similar dilemma. He recommends anyone respond quickly to correct the problem.

"Don't wait because it's like watching the cliff's edge. There's help out there that's legitimate and debt management plans at a non-profit place are a great way to have structured payment back and you're done," he said.

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