The Apathy Behind Eliminating Consumer Debt

From a customer perspective and as a CITRMS, I think I know why many people are in serious debt in America. First of all the consequences for not paying off debt is not severe enough to motivate the average person to eliminate debt. You can owe a credit company thousands of dollars, but you are not going to jail for it. But failing pay your speeding ticket will often land you in jail. Failing to pay your credit card debt or health bill will initially produce nasty letters demanding payment or the very worst, nasty bill collectors who harass you on the telephone. However, when people receive a letter from an attorney that promises legal action if their debt is not paid within 30 days, many people scoff at even that. They believe that since they can not pay the debt in full, the courts won’t allow them to pay. Most people think that courts force only wealth defendants to pay court settlements. They believe that they can sweet talk the judges into believing that they are 100% incapable of paying the debt.

Why do people think this has very little consequences? Don't they realize their credit rating will be destroyed and part of their wages will eventually be garnished? All the information is available on state court websites. Lawsuits don't just apply to wealthy Americans. They also involve companies who sue individuals who fail to pay their debts that they owe to these companies. They also involve middle-class individuals filing lawsuits against other middle class individuals. Unfortunately, the media is really not interested in these stories because it is not compelling news and will plummet their ratings. This is explained in my earlier blog which is titled Middle-Class House Fires vs. Lawsuits: Media Perception vs. Reality.