Do you know how much the national debt is for your country?

How do people accumulate so much in credit card debt?

• I only have 1 credit card and it has a $2000 limit only. I hear online about people saying they racked up $30,000 or $70,000 in credit card debt and can't pay the creditors. My first question is how in the world did a credit company let this happen? And don't most of these people have credit card limits? I know for credit cards, you suppose to pay within 30 days or so and if you don't pay, interest is piled on. But wouldn't after say 6 months where a person can't pay off their credit card bills, then the credit card company would shut down their account? I hear people talk about maxing out their credit cards but what in the world are they buying where they rack up credit card debt that is $70,000? I mean, you can't buy a car with that since i don't think you can buy a car with a credit card right? And don't most people have limits? I would think most credit card limits are max $5,000 a month unless they have a very decent job. Can someone explain how people rack up so much in credit card debt? Do they get 10 credit cards with $1500/month max and then max it every single month for 5-6 months? I understand when people rack up debt in medical bills, student loans, taxes and those things but i just don't get how can people rack up so much in credit card bills. I mean after a person owes $20,000 to the credit card company and can't pay it back, why would they continue using it? I understand if you use it to buy food and support yourself and your family but do people rack up credit card bills b/c of food? I don't think so right? And if a person cannot pay it back, i assume they can file bankruptcy right in the united states? And i hear people talk about fleeing the country because of credit card debt. Do they do so successfully? And usually what countries do they flee to? I'm sure canada isn't one of them right since you can only say 6 months max? What countries do people flee to? Do they ever get caught? So if they stay there after a certain amount of time, wouldn't they be there illegally? And since they have to support themselves and make money, wouldn't the us government know that they are making income and thus could garnish their wages even if they live in the other country? Or do these people just try to make money off the table and just live and hide? I mean, are there people that have huge debt , leave the us and then become successful later on in the country they flee to and then become rich? Because if they do become wealthy, wouldn't they be caught eventually for fleeing the country? If they then decide to pay back their debt after they made money, would everything be fine or would they face huge penalties for fleeing the country? Or do they just have to stay below the radar and can't live in a nice place because of it? I'm very curious about this because i read so much about credit card debt and people leaving the country. I just can't believe a person could have credit card debt this high because i assume the CC company would freeze their cards after they don't pay after a few months if the balance is high.

• Answer:

  You ask a lot of questions and I am here to assist you. Thanks! Question 1: "How do people accumulate so much in credit card debt?" MY ANSWER: There are various reasons such as: charging too much, having multiple credit card accounts, charging all your living expenses. It happens especially with the people who are included in these categories (but it can happen to anyone): going through a divorce, on government assistance (disability, welfare, social security), the unemployed people, and sick people (those who have recently suffered major illness that prevents them from working).. Imagine if you have no money and you have all these bills: utilities, phone, cable, internet, insurance, car payment, house payment. It's very convenient to just charge it and be done with it. However, what happens is, they get so much debt on their credit cards that they can barely pay it back. Remember the minimum payment barely pays anything, plus they charge you interest on top of it If they ever are late or go over their credit limit there are additional fees to that, too! Question 2: "My first question is how in the world did a credit company let this happen? And don't most of these people have credit card limits?" MY ANSWER: The credit card companies check people's credit, also they ask for income source. Consumers may have good credit to start out with, but then get multiple credit cards. Just imagine if you have 8 credit cards with $5000 limits on each of them. If you max them out that's $40 000 just there before any of the interest and/or late fees/over the limit fees. Sometimes, if you have excellent credit and large income credit companies will give you a high credit limit. Just imagine if you're a doctor or lawyer making 3 figure salary. So they're comfortable giving them a $50 000 limit. As I mentioned before, what if they lose their job and become ill (such as cancer)? How do you think they're going to pay $50 000 dollars back? Questions 3--6: (From paragraph 2) MY ANSWER: After a few months of non payment (30 to 120 days), depending on the creditor, they will close the account and demand payment be made on the delinquent (past due) balances. You're right the account will accumulate interest. Please refer to question 1 for what consumers buy with credit cards. Also, I've heard car lots allowing you to buy with a credit card. However, I'm not sure I would want to charge a $70 000 on my credit card. I'm sure the credit card company would have to know in advance. Generally, if your account is in good standing you can charge up to the maximum limit, and the credit card company will let you. They know that they will collect the interest and late fees on the account! Questions 7--19: (From paragraph 4) MY ANSWER: Bankruptcy? They have to prove their case. If they get a lawyer it can cost them additional money, and the court has to prove that they have no other choice than bankruptcy. It stays on the consumer's credit report for 10 years, too. Fleeing the country would only be a temporary solution. They may go back to their native country, but what happens when someone wants a credit reference or what if some reason they come back to USA? They'll still have to face the music some day. Also, if the credit card company could call them in their country or sue them in USA to get their money. However, recover could be difficult if the consumer never returns. I'm not familiar with them garnishing wages in other countries, also the USA would require an international agreement to do that. I'm doubting they have that. As long as they are legally staying in another country they wouldn't have problems. If they pay it later at some point they may face interest, late fees, and if they were sued, attorney fees, and court filing fees.