What is Debt?
Debt is that which you owe someone. It is not necessarily money. It can mean any assets you posses. When this is repaid, it is generally necessary to repay the original amount plus an interest on it. Using credit cards is also a form of the same. The card holder generally makes purchases using the card for which the payments are made by a bank. At the end of a fixed period, the card holder will be required to repay the amount spent plus an interest on it thus generating revenue for the banks and credit card companies.
Not being able to repay a debt could have serious consequences, especially in the case of credit cards, although most countries do not send defunct people to prison for simply not paying their dues on time. The card company would be required to prove that the card was purchased with intent of not repaying all the money which amounts to fraud in almost all countries and would be treated as a criminal matter. However if the company or bank is unable to prove that, it becomes a civil case and is not so serious. But repaying all the money on time would help in establishing a good credit history that in turn could be helpful in the future to get other loans at reduced rates of interests.
Also having a debt could prove as a hindrance for moving from one country to another. Most countries require you to provide documents proving that you have at least a set minimum amount of money in your accounts or enough resources to repay your debts. Thanks to electronic developments in the recent years, it has become very easy for money collectors to keep track of these people no matter where they are. So it is almost impossible for debtors to simply skip their payments and run away. Also if the creditors in your new country happen to get hold of your old credit history, it could prove to be very bad for you. However in some countries, your credit history from other countries will not be taken into consideration although you would still owe your old creditors the money.
If you are unable to repay a debt due to various unforeseen events, it would be a good idea to employ a money settlement agency. Such agencies try to negotiate with the creditors and try to reduce your debt. You will then be required to pay monthly settlements that depend on the amount of resources you have at your disposal and can get out of the debts easily within a few months.
Many people try to get out of this by filing for bankruptcy. However this is a bad idea as bankruptcy is available as public information for anybody to see. Also this information will have to be included in all your important documentation that will taint your credit history for the rest of your life. Instead the person should try to come up with a solution to repay the money as quickly as possible so that when they apply for loans in the future, they can get the money or resources they need for minimum interest.