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Debt is a monetary burden that most individuals attempt to handle responsibly, however some will go to excessive—and infrequently ridiculous—lengths to keep away from paying what they owe. Whether or not it’s bank card balances, pupil loans, and even mortgages, folks have tried weird schemes to flee their monetary obligations. Whereas a few of these methods are laughably absurd, others have landed folks in authorized hassle, making their debt state of affairs even worse. Listed here are ten of the stupidest methods folks have tried to get out of paying off their debt.
1. Claiming They’re No Longer Alive
One of the crucial determined—and dumbest—makes an attempt to keep away from debt is faking one’s personal loss of life. Some folks have gone so far as forging loss of life certificates, staging pretend obituaries, and even convincing family and friends to lie on their behalf. The issue? Lenders and authorities companies aren’t simply fooled. Banks and collectors typically confirm loss of life claims, and faking your loss of life is a federal crime in lots of nations. As an alternative of wiping out debt, this rip-off often ends with fraud prices and even jail time.
2. Mailing a Literal Envelope Filled with Pennies
Some folks assume they will “technically” pay their debt in a approach that frustrates collectors a lot that they’ll simply quit. One notorious trick is mailing an envelope crammed with pennies or a whole truckload of free change to a lender. Whereas it’s true that authorized tender legal guidelines imply corporations should settle for official forex, banks and lenders aren’t required to course of funds in an unreasonable format. Many establishments merely return the cost and proceed charging late charges.
3. Arguing That Debt is “Unlawful” Primarily based on Conspiracy Theories
A bunch of so-called “sovereign residents” imagine that debt is illegitimate and that they don’t seem to be obligated to repay loans or bank cards. Their argument is that the U.S. authorities and banks function below a secret monetary system that doesn’t apply to them. They ship weird authorized paperwork crammed with nonsensical authorized jargon, claiming that their money owed should be erased. Unsurprisingly, courts don’t acknowledge made-up monetary loopholes, and these folks often find yourself in deeper authorized hassle.
4. Sending a Stop-and-Desist Letter to the Financial institution
Some debt dodgers assume that sending a cease-and-desist letter to their financial institution will by some means erase their monetary obligations. Whilst you can ship a letter to cease aggressive debt assortment calls, it doesn’t remove the debt itself. Lenders don’t simply neglect about unpaid loans as a result of somebody despatched them a strongly worded letter. As an alternative, they typically escalate the case, take authorized motion, or ship the debt to collections—resulting in even worse monetary penalties.
5. Altering Their Identify to Escape Debt Collectors
A surprisingly massive variety of folks have tried legally altering their title, assuming that their debt will disappear with their outdated identification. Nevertheless, debt isn’t tied to only a title—it’s linked to Social Safety numbers, addresses, and monetary historical past. Banks and credit score companies nonetheless monitor debt below earlier names, so this trick accomplishes completely nothing—besides the effort of submitting authorized name-change paperwork for no motive.
6. Marrying Somebody and Transferring the Debt to Them
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Some folks assume they will escape debt by getting married and by some means dumping their monetary burdens onto their partner. Whereas marriage does merge sure monetary tasks, money owed incurred earlier than marriage sometimes stay the unique individual’s duty. Some debt dodgers have even tried divorcing proper after transferring property and loans to their partner, hoping to stroll away debt-free. Courts aren’t fooled by this trick, and most lenders nonetheless maintain the unique borrower accountable.
7. Shifting to a Distant Nation to “Disappear”
Some debtors imagine that transferring overseas means their debt will magically vanish. Whereas it’s true that some lenders received’t pursue small money owed internationally, massive unpaid loans, unpaid taxes, and government-related money owed (like pupil loans) don’t go away simply since you go away the nation. In some circumstances, lenders can nonetheless work with worldwide assortment companies, freeze accounts, or forestall a debtor from returning dwelling with out monetary penalties. Working away not often works—except you intend to fully lower ties with fashionable banking methods perpetually.
8. Suing the Financial institution for “Emotional Misery” (Continued)
In a weird try and erase debt, some folks have truly sued their lenders, claiming that having to pay their payments prompted them emotional misery. Whereas debt can completely be hectic, this argument doesn’t maintain up in court docket. Debt is a authorized obligation, and simply because somebody finds it inconvenient doesn’t imply they’re entitled to a free go. Usually, the lawsuit is dismissed, and the debtor finally ends up owing much more on account of authorized charges.
Even worse, if the lender decides to countersue for unpaid debt and authorized prices, the debtor could also be in an excellent deeper monetary gap. The court docket system isn’t sympathetic to individuals who file frivolous lawsuits in an try and keep away from monetary duty. As an alternative of erasing their debt, they often find yourself including to it.
9. Pretending to Have Amnesia or “Forgetting” In regards to the Debt
Some debt-dodgers assume that taking part in dumb will get them off the hook. They declare they don’t bear in mind taking out the mortgage or opening the bank card, hoping the lender will simply drop it. Sadly for them, banks and collectors hold information of each transaction, and conveniently “forgetting” doesn’t make the debt disappear.
Some scammers have even tried to pretend amnesia or insist that another person fraudulently opened the account of their title. Whereas identification theft is an actual concern, falsely claiming fraud is a severe crime. If the lender investigates and finds out the declare is fake, they could pursue authorized motion for fraud, making the state of affairs far worse than simply having unpaid payments.
What Occurs When These Methods Backfire?
Attempting to sport the system to keep away from paying debt not often works—and infrequently makes issues a lot worse. Individuals who try these ridiculous methods typically discover themselves dealing with:
- Lawsuits – Lenders can take authorized motion, resulting in court docket judgments that make the debt even more durable to flee.
- Wage Garnishment – Courts can order a portion of the debtor’s paycheck to be routinely deducted to repay the debt.
- Ruined Credit score – Unpaid money owed and failed scams can destroy credit score scores, making it troublesome to purchase a house, get a job, and even hire an condominium.
- Financial institution Account Freezes – Some lenders can get court docket approval to freeze accounts, that means debtors can’t entry their very own cash.
- Legal Costs – Fraudulent makes an attempt to keep away from debt, comparable to faking a loss of life or submitting false lawsuits, can result in fines and even jail time.
The Smarter Various: Dealing with Debt Head-On
As an alternative of making an attempt silly methods to get out of debt, folks ought to give attention to actual options that truly work. Choices like negotiating with lenders, establishing cost plans, consolidating debt, or working with a credit score counselor will help folks get again on monitor with out resorting to shady ways. In some circumstances, submitting for chapter could even be a official final resort that wipes out sure money owed legally.
Debt can really feel overwhelming, however avoiding it—or making an attempt ridiculous schemes—will solely make issues worse. The neatest transfer is to take duty, make a plan, and deal with the debt head-on earlier than it spirals uncontrolled.
Have you ever ever heard of somebody making an attempt a loopy trick to dodge debt? Share your ideas within the feedback!
Learn Extra:
Would Jesus Use a Credit score Card? The Ethics of Debt in a Fashionable World
7 Sudden Methods Hospitals Can Assist You Slash Your Medical Debt
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Latrice is a devoted skilled with a wealthy background in social work, complemented by an Affiliate Diploma within the discipline. Her journey has been uniquely formed by the rewarding expertise of being a stay-at-home mother to her two youngsters, aged 13 and 5. This position has not solely been a testomony to her dedication to household however has additionally supplied her with invaluable life classes and insights.
As a mom, Latrice has embraced the chance to teach her youngsters on important life expertise, with a particular give attention to monetary literacy, the nuances of life, and the significance of internal peace.
