Unsecured Debt

[dgtlmstry]

I was listening to a late night radio talk show and someone proposed a what if....what if everyone in the country stopped paying their unsecured debts? (That means credit cards and regular unsecured bank loans etc) What could the credit cards companies & banks really do? His argument was that it is nothing more than indentured servitude.

So what I would like to know is who would jump on board? No real need to post a message reply I would just like a pure vote count. (But of course if you would like to chime in, feel free)

[Paladin]

well, the courts would (both civl and criminal) would be very busy. A better question would be would everyone be willing to refuse to file tax returns!!!

[kaiser1one]

They obviously couldn't put everyone in jail.
So they'd have to give up eventually.

[kimjongil]

They obviously couldn't put everyone in jail.
So they'd have to give up eventually.


Unless fraud is involved, you can't be put in jail for debt.

[Oli]

If everyone refused to pay their unsecured debt, there would be a collapse of several large corporations, the end of the credit economy, massive job loss and our economy would rapidly grind to a halt. Consumer spending is what drives the economy, and unsecured credit is what drives consumer spending.

If you want to do it...
Have a shitload of cash available, own your home outright, live completely off the grid and pass the Bar. You'll need a lawyer, and without the ability to draw on credit, you'll probably have to defend yourself. No bank, lending institution, credit card company, gas company or department store will ever extend you credit again. Ever.
(short of those 2 guys with no necks in the backroom of the local bar).

Kim is right, you won't go to jail, but your wages can be garnished to satisfy your outstanding debts.

People should learn to live within their means, upgrade their education (go get that MBA), read the fine print, stop trying to keep up with the neighbors and understand that the marketers job is to get you to buy their product, whether you need it or not.

[thx1138]

"People should learn to live within their means," does not apply to the US government which rolls out trillion$ in debt without batting an eyelash. It's understandable citizens brainwashed by TV ads would want to emulate its government's handling of debt. I almost feel sorry for all those foreigners holding US dollar deposits. The world's largest debt repudiation is coming as surely as tomorrow's sunrise.

[thx1138]

addendum to my post above: http://online.wsj.com/article/SB120881517227532621.html & http://www.portfolio.com/news-markets/national-news/portfolio/2008/04/14/Pentagons-Accounting-Mess

[dgtlmstry]

Thanks for those links thx1138, and everyone for posting and keeping it civil (or have I spoken to soon? lol) I am surprised about the poll though. I thought there would be more folks inclined to do it, split somehow between the starting it crowd and only if someone else I know crowd. Oh well, such is life.

[jmecross2]

Live within your means and pay your bills.