What would happen if you maxxed out your credit cards and line of credit then moved to some village in the phillipines?

Comments

• ZkhqrD5o@lemmy.world ⁨12⁩ ⁨hours⁩ ago

  With a net worth below 1 billion, it’s called a crime.

  With a net worth above 1 billion, it’s called a bailout.

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• Doom@lemmy.world ⁨12⁩ ⁨hours⁩ ago

  -Unpaid debt gets sent to collections.
  -Collectors would try to contact you.
  -Your debt would be sold multiple times among multiple agencies, all of which would make efforts to try and contact you to collect the debt.
  -After about 7+ years the debt is written off by the agencies and drops off credit reports.
  -Once the debt dissappears your credit score would go up.
  -You don’t need to leave America, you can ignore debtors/change your number/avoid being served (obviously laws are state dependent). An attempt to reclaim what you purchased could be made depending on how much you owe/what you bought but usually it’s not worth the hassel.
  -If you leave the US and want to see if debtors are still looking for you pulling your credit reports will reflect it.

  None of this applies to student debt.

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  • Crozekiel@lemmy.zip ⁨11⁩ ⁨hours⁩ ago

    After about 7+ years the debt is written off by the agencies and drops off credit reports.

    *Is supposed to be written off, falls off your credit report, and they cannot take any legal action to reclaim the debt. This does not stop the bill collecting calls and e-mails and text messages, because the 7 year timer is from the last time you gave them money, so they will sneakily try anything they can to get you to pay them literally anything in order to re-open those doors, including lying to you about settlement discounts and the like. Debt collectors are a special breed of evil.

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• seathru@quokk.au ⁨1⁩ ⁨day⁩ ago

  I kinda did that in the early 00’s. Left the US and told creditors to kick rocks. They basically just wrote it all off. I came back 10ish years later and it was like it never happened. I went to get a loan for a motorcycle when I got back and they told me that since I didn’t have any credit history (wtf?) that it would be a slightly higher interest rate. Now some 15 years after that, I’m a model citizen, credit wise. I’ll save the next time for retirement.

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  • TheReanuKeeves@lemmy.world ⁨1⁩ ⁨day⁩ ago

    Wait what? Did you find out why you had no credit history rather than none? Did you expect some legal issues when you moved back to the US?

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    • seathru@quokk.au ⁨1⁩ ⁨day⁩ ago

      No, I’m not sure how it happened. I found some default judgements against me searching threw court records; but it wasn’t on my credit at that point. I did expect to be hit by a surprise garnishment or seized tax return. But they never came.

      I’m guessing I fell through the cracks during some data migration. I doubt you could pull that off today.

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    • prole@lemmy.blahaj.zone ⁨20⁩ ⁨hours⁩ ago

      I think it resets after 7 years, but I could be wrong and don’t know the specifics of how that works

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    • Ioughttamow@fedia.io ⁨1⁩ ⁨day⁩ ago

      FCRA and the like. Most things will end up being unreportable after about 7 years, but there are exceptions and gotchas

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• speculate7383@lemmy.today ⁨1⁩ ⁨day⁩ ago

  Yeah, this has been a known thing in the credit world for years-- they call it bust out fraud. These days they have computer statistical models watching for stuff like this, and will likely shut you down before you get to your limit.

  transunion.com/…/how-to-prevent-bust-out-fraud

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  • fyzzlefry@retrolemmy.com ⁨3⁩ ⁨hours⁩ ago

    So you slow build to it, got it

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  • CrabAndBroom@lemmy.ml ⁨13⁩ ⁨hours⁩ ago

    As someone with citizenship in another country I have to admit I have daydreamed about this lol. Which probably means I’m in their model somewhere.

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  • Crozekiel@lemmy.zip ⁨10⁩ ⁨hours⁩ ago

    Yea, imagine every transaction goes through except the plane ticket…

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• einkorn@feddit.org ⁨1⁩ ⁨day⁩ ago

  That depends. Does your country of origin have an extradition agreement with the Philippines?

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  • TheReanuKeeves@lemmy.world ⁨1⁩ ⁨day⁩ ago

    So theoretically someone could actually take out a ton of loans and move to a country that doesn’t have an extradition agreement?

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    • Dookieman12@piefed.social ⁨1⁩ ⁨day⁩ ago

      Theoretically, yes. But then you would be a US citizen in a foreign country. Eventually, that country will make you either leave or become a citizen.

      Also, even though extradition wouldn’t be possible, deportation might still be on the table if you piss off the wrong people the right way.

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    • trxxruraxvr@lemmy.world ⁨1⁩ ⁨day⁩ ago

      You might also want to consider the chance of the countries having an extradition agreement in the future

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    • hansolo@lemmy.today ⁨22⁩ ⁨hours⁩ ago

      What everyone is missing here is that you need a visa, and eventually your passport will expire and you’ll need a new one. Regardless of the extradition angle, the local government will care about your immigration status.

      What you’ll probably want to also need to do is marry a local for residency. They’ll want you to spend that money on them, so…

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• RodgeGrabTheCat@sh.itjust.works ⁨20⁩ ⁨hours⁩ ago

  Far more common is declaring bankruptcy. It’s totally legal, no need to leave the country.

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  • Sly2@lemmy.world ⁨19⁩ ⁨hours⁩ ago

    Image

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• Malyca@lemmy.zip ⁨1⁩ ⁨day⁩ ago

  You could get blacklisted for Visa, MasterCard and Amex, others too I’m sure. So you’d have to use cash from then on. Not sure about other penalties.

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  • CultLeader4Hire@lemmy.world ⁨1⁩ ⁨day⁩ ago

    You can still use a bank card, debit cards exit, it’s not like only paper money exists outside of credit cards.

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    • Sunspear@piefed.social ⁨22⁩ ⁨hours⁩ ago

      Visa and Mastercard

      It doesn’t matter if debit or credit, cards are overwhelmingly issued by one of these two

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• disregardable@lemmy.zip ⁨1⁩ ⁨day⁩ ago

  people generally don’t like moving abroad because they get lonely and frustrated. but yeah you can skip debt by moving abroad.

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• BeatTakeshi@lemmy.world ⁨11⁩ ⁨hours⁩ ago

  Same question, asking for a friend

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• anon_8675309@lemmy.world ⁨6⁩ ⁨hours⁩ ago

  He who goes out owing the most wins. Lived like a king and didn’t pay for a damned thing.

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• FreshParsnip@lemmy.ca ⁨17⁩ ⁨hours⁩ ago

  I don’t know but I think you’d enjoy the finale of 3rd Rock From The Sun. The aliens find out they’re leaving earth forever. They’re sad but make the most of it by maxing out their credit cards and having a party.

  Although, the writers weren’t sure if they were coming back for another season or not. Presumably, they would have had to deal with consequences next season if they returned

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• mike_wooskey@lemmy.thewooskeys.com ⁨1⁩ ⁨day⁩ ago

  What’s the credit limit on your credit card? I think $50K is really high. If you had 5 cards each with a$50K limit, and none of them had any balance, “maxing out your credit cards” means you’d have spent $250K.

  Then you’d have $250K worth of stuff (or experiences ) but no additional spending money. Would it really be worth leaving your family, friends, home, culture, and still have to find a way to continue earning money to live on, for that amount?

  It wouldn’t be worth it to me. Maybe that’s why you don’t hear about it happening much.

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  • Rhynoplaz@lemmy.world ⁨1⁩ ⁨day⁩ ago

    Would it really be worth leaving your family, friends, home, culture,

    I myself had no plans of doing any of this, but when you put it like that, it’s got me thinking.

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  • TheReanuKeeves@lemmy.world ⁨1⁩ ⁨day⁩ ago

    We’ll use your example to make it easier. You max out your cards and loans on crypto, not stuff. Then you convert it back when you get to whatever low cost country and you’d be able to start a small business with it.

    The move of course wouldn’t be too enticing to most people but there are definitely people who don’t have those ties to stay, it’s not that rare for people leave their home countries.

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  • CrabAndBroom@lemmy.ml ⁨13⁩ ⁨hours⁩ ago

    If you wanted to long-game it, maybe you could emigrate to another country, work for a few years and get established/build up a credit score, then max out your credit and just go home?

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    • mike_wooskey@lemmy.thewooskeys.com ⁨9⁩ ⁨hours⁩ ago

      Creative!

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  • howrar@lemmy.ca ⁨1⁩ ⁨day⁩ ago

    wtf 50k? I’ve never had a card go over 2k, and the highest I’ve ever been offered was 5k. I can’t imagine the level of wealth you’d need to spend that much in a month.

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    • Rhynoplaz@lemmy.world ⁨1⁩ ⁨day⁩ ago

      I have a $50k card, and I’m broke as fuck.

      I’ve had the card for 10 years and always pay on time.

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    • Peppycito@sh.itjust.works ⁨1⁩ ⁨day⁩ ago

      I have a credit card with $25k limit on it. I kept accepting increases because I thought it was funny how they kept giving it to me. Thrn I heard having a lot of credit lowered your credit score or some bullshit so stopped. I still get offers to raise it. I’m not rich, just paid off my house.

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• Rhynoplaz@lemmy.world ⁨1⁩ ⁨day⁩ ago

  They’ll call you. A lot.

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  • banause@feddit.org ⁨20⁩ ⁨hours⁩ ago

    They can call me whatever they want.

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  • Dookieman12@piefed.social ⁨1⁩ ⁨day⁩ ago

    They’ll call the number you gave them. Numbers can be easily changed

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    • Rhynoplaz@lemmy.world ⁨21⁩ ⁨hours⁩ ago

      They know that. They will call every number thats ever been associated with everyone you’ve ever known.

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• hperrin@lemmy.ca ⁨1⁩ ⁨day⁩ ago

  Probably not much other than never being able to return. It happens more often than you think.

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