Hypothetical question about debts

[tobebebebe]

If someone with a average credit rating took out say, 4 credit cards with a total limit of £12k and then spent it all, could they then approach the lenders and say they couldn't afford to pay, default and set up payment arrangements?

Obviously the credit file would be wrecked, but would there be any other repercussions?

Yes in theory, the repercussions could be bailiffs', loss of personal items due to CCJ's etc, courts, wrecked credit file as you mention and a lot of stress.

But in theory yes.

If you had payment plans/ arrangements in place with all lenders, why would there be bailiffs or loss of personal items?

If you had arranged payment plans and kept to them the debt process should stop and so no CCJs or bailiffs just a poor credit history.

If you miss a payment on a payment plan though the debt process may start up again so you would be at risk of the above.

Have you sought proper debt advice? There may be a more appropriate debt option for you

Thanks @MiniMum97 I don't have this debt, my question was hypothetical :)

You can't get into criminal trouble for debts unless it's classed as fraud. Even then, jail is rare.

If someone deliberately took out lots of cards with the plan to default on the debt, then that's not going to end well.

An acquaintance of mine has twice built up unsecured debts (loans, credit cards, catalogues) of over £30k each time, defaulted on the repayments, put up with a bit of mither and threats, before finally coming to informal agreements with all her various creditors to only pay back around 30% of the outstanding balance without ever having ccj's issued against her.