Consequences of not ever paying back CC debt

First off I'd like to say that I am not planning to default on my credit card debt and have been and am paying it off and have learned my lesson.

But, if I did decide to just not pay them back, what are the repercussions? Say on a debt of 7k.

Would it be just a load of calls from the credit agencies, or would a spell in jail be involved?

Again I'm just really curious as to what happens. I am killing myself to make payments and become debt free so this is just a question.

Cheers.

It would be lots of threatening letters followed by a court appearance which may or may not result in you going to jail BUT I believe they are trying/have succeeded in outlawing jail. Strangely, you may be better off going into arrears in order to get them to stop charging you interest and give you a chance to pay it back without interest penalties. If you ignore approaches and effectively make no effort to pay it back then your risk of jail is higher. If you have inome or property they may or may not try to get a judgement baszed on that information.

Would it not then make more sense for say people in their 40s, etc. who have high credit card debt, who have no assets, and who have decided they never want to borrow again for a house/car to just default?

There is a case for it really isn't there, given the sinful rates of variable interest (and rising) on credit cards and given what the financial institutions have effectively caused to happen to this country.

I'm in my late 20s, and my debt is 8k while I have car worth 3500 so I'm just as well off paying back mine, but for someone older, like the example above, if I were them I would walk away I have to say.

Two perspectives

1.
"There is a case for it really isn't there, given the sinful rates of variable interest (and rising) on credit cards and given what the financial institutions have effectively caused to happen to this country."

Justification of reasons for not repaying debt willingly and happily incurred.

2.

Borrowed money. Must/should repay. Honour. Ethics. Moral. Right and wrong.
Ruined credit rating. Judgment published. Court appearanceas. Attachment of earnings. Common knowledge that X does not pay debts. Would you lend to this person? Scruples.


If ethics does'nt do it, consider the prospects of needing to raise finance urgently to pay for medical care, nursing home care, essential house repairs? Who would lend to someone who defaults?


mf

There is no jail for a civil matter like non-payment of debt! Unless the debt is owed to the government maybe, e.g. large tax arrears. In the UK you can go to jail for non-payment of council tax.

But no jail for credit card debt unless you incurred it fraudulently, say, in someone else's name etc, which I presume isn't the case. But then the jail would be for fraud, not for the debt itself.

marfsmal said:

I'm in my late 20s, and my debt is 8k while I have car worth 3500 so I'm just as well off paying back mine, but for someone older, like the example above, if I were them I would walk away I have to say.

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Well these kind of debts eventually get factored out to a debt collection company, who are usually much more motivated to see that the debt is collected, since that is their business. This may eventually lead to a judgement against you, which the debt collector will seek to enforce. Meaning that the County Registrar or Sheriff will be instructed to take the property of the debtor and sell it at auction. [broken link removed]. Note that the Sheriff can keeping coming back until he gets it all!

Jim.

Very interesting Jim. So even for debt of 7k a debt collection agency can take a judgement against you and seize your assets? Wow.

I have to say it's disgraceful that they can publish your name for a court appearance. Same with those getting caught without tax discs, etc. Seriously with the levels of white collar crime as they are and most of these people virtually anonymous this really is a-wall.

Name and shame! why not?

"So even for debt of 7k a debt collection agency can take a judgement against you and seize your assets? Wow. I have to say it's disgraceful that they can publish your name for a court appearance."

The money is due. Which bit of that is not obvious? Why do you think there should be a moral police man deciding that the debt /judgment should not be published because you believe there are others more deserving?

Wanders off shaking head in disbelief.....................

mf

marfsmal said:

and have learned my lesson.



I am killing myself to make payments and become debt free so this is just a question.
.

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This is not directed as you in particular but one does wonder what way people are brought up. If you borrow money you should pay it back. If you make a mistake in borrowing money you should pay it back. If you were silly and borrowed money you should pay it back. Quite simple really.

Learn your lesson, pay it back and move on and don't make a mistake in borrowing the next time.

Dont comment too often, but feel a need here. With the rises in petrol (large % of which is tax, in turn paying back banking bail out), income tax (personal monthly income reduced by over 130 euro per month over the last 12 months (incidentally this is the interest portion of my own personal credit card debt), I really think that if the OP wants to walk away from his CC debt (which he states IS NOT his / her intention), and in turn negotiates either no interest or lower monthly repayments, then power to OP.
Its not about the way you are brought up Bronte, YOU do not know every member on this site and have a nerve to question someones upbringing. Here is a scenario you have a sick child who, due to another unbelievable expense in this poorly run country, costs 60 eur to go to the doctors, do you a) make sure you pay back your CC debt or b) take the child to the doctor and with prescription use that money to ensure your child gets better - in your opinion, does the way you were brought up determine this ? Some people are too obsessed with money!!

"Its not about the way you are brought up Bronte, YOU do not know every member on this site and have a nerve to question someones upbringing. "

Emotional attack and evasion of the issue.

Read these two sentences:

A. What's the worst that can happen to me of I opt not to repay my credit card debt?

versus

B. I am in financial difficulties and need some help managing my credit card debt.

Very different scenarios.

mf

listen walk away from it, health is welath, i know for a fact that cc debts at this level are not pursued by banks once they send a few threatening letters etc. they have bigger fish to fry

legend said:

listen walk away from it, health is welath, i know for a fact that cc debts at this level are not pursued by banks once they send a few threatening letters etc. they have bigger fish to fry

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Dreadful, dreadful advice, worthy only of bar stool barfly!

mf

Bronte said:

This is not directed as you in particular but one does wonder what way people are brought up. If you borrow money you should pay it back. If you make a mistake in borrowing money you should pay it back. If you were silly and borrowed money you should pay it back. Quite simple really.

Learn your lesson, pay it back and move on and don't make a mistake in borrowing the next time.

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Why quote me then? I already told you I am posing a hypothetical question. I have and always will pay back my debts. Don't patronise or bore us with the lectures.

Seriously before anyone else gets on a moral high stool here this was a hypothetical question which I thought I clearly stated in my opening post.

I would appreciate replies back from posters like Jim2007 and Greta who have addressed the question and didn't take any moral high ground.

(p.s for further evidence look at my post history - I have asked for advice in the past for paying back debt. Let's say it one more time - this is HYPOTHETICAL.)

I see some of the posters here have made the fatal mistake of choosing not to only answer the "specific" question answered but have made the unforgiveable sin of straying into assocated relevancies.

I think the Posting Guidelines should be amended so that all posters who reply to any post are prohibited from straying beyond the "specific" remit of the question posed. And OP should be able to only read/choose posts that they like. Every one else should be deleted. So that we have a well rounded view of the world according only to those people who offer the answers that posters want to hear.


"Don't patronise or bore us with the lectures. "

Did'nt Bronte say:

"This is not directed at you in particular but one does wonder what way people are brought up."

mf

Didn't she also say

'If you were silly and borrowed money you should pay it back. Quite simple really.

Learn your lesson, pay it back and move on and don't make a mistake in borrowing the next time'

Even if it was a general remark, it wasn't useful whatsoever.

Again see Jim2007's post for an example of a very helpful post. Maybe he's a bit less insecure in himself and doesn't need to lecture like others do.

Just a thought (not directed at anyone in particular )

marfsmal said:

, but for someone older, like the example above, if I were them I would walk away I have to say.

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Is this too hypothetical?

Sorry if it appeared I was lecturing, can't help it being the eldest, it's the nature of the beast. My remarks are based on the many people who come on AAM with 'hypothetical' questions such as yours.

Scarednow - you belive that the OP wishes to walk away from his debts, and that's a good thing. Why is that a good thing?

I am female.

Yes. If I were 40+ ( those unlucky enough to have been in their late 20s and thirties during the boom) and had substantial CC debts (accumulated during the bubble) and was spending most of my income on the repayments of even only the minimum amount, I would not waste the next few years of my life paying it back. I would save and invest it.

This is in the context of the bailout of the banks and the economic bubble.

If the circumstances were different I would not be necessarily advising this age-group (and above scenario) to walk from the debt.

I have my thirties to invest, lessons learned about borrowing which like I said in my first post, won't be happening again.

Sadly empathy is always in short supply in the human beast.