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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, scholar loans, and even mortgages, folks have tried weird schemes to flee their monetary obligations. Whereas a few of these tips are laughably absurd, others have landed folks in authorized hassle, making their debt state of affairs even worse. Listed below are ten of the stupidest tips folks have tried to get out of paying off their debt.
1. Claiming They’re No Longer Alive
One of the determined—and dumbest—makes an attempt to keep away from debt is faking one’s own death. Some folks have gone so far as forging dying certificates, staging faux 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 usually confirm dying claims, and faking your dying is a federal crime in lots of international locations. As an alternative of wiping out debt, this rip-off normally ends with fraud costs and even jail time.
2. Mailing a Literal Envelope Stuffed with Pennies
Some folks suppose they’ll “technically” pay their debt in a method that frustrates collectors a lot that they’ll simply hand over. One notorious trick is mailing an envelope full of 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 professional 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” Based mostly on Conspiracy Theories
A bunch of so-called “sovereign citizens” consider that debt is illegitimate and that they aren’t 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 full of nonsensical authorized jargon, claiming that their money owed should be erased. Unsurprisingly, courts don’t acknowledge made-up monetary loopholes, and these folks normally find yourself in deeper authorized hassle.
4. Sending a Stop-and-Desist Letter to the Financial institution
Some debt dodgers suppose that sending a cease-and-desist letter to their financial institution will one way or the other erase their monetary obligations. When you can ship a letter to cease aggressive debt assortment calls, it doesn’t get rid of 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 usually 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 giant 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 related to Social Safety numbers, addresses, and monetary historical past. Banks and credit score companies nonetheless observe debt below earlier names, so this trick accomplishes completely nothing—besides the trouble of submitting authorized name-change paperwork for no purpose.
6. Marrying Somebody and Transferring the Debt to Them
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Some folks suppose they’ll escape debt by getting married and one way or the other dumping their monetary burdens onto their partner. Whereas marriage does merge sure monetary obligations, money owed incurred earlier than marriage usually stay the unique individual’s accountability. Some debt dodgers have even tried divorcing proper after transferring belongings 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 consider that shifting overseas means their debt will magically vanish. Whereas it’s true that some lenders received’t pursue small money owed internationally, giant unpaid loans, unpaid taxes, and government-related money owed (like scholar loans) don’t go away simply since you depart the nation. In some instances, lenders can nonetheless work with worldwide assortment companies, freeze accounts, or stop a debtor from returning dwelling with out monetary penalties. Working away hardly ever works—until you propose to utterly lower ties with trendy 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 brought about them emotional misery. Whereas debt can completely be anxious, this argument doesn’t maintain up in courtroom. Debt is a authorized obligation, and simply because somebody finds it inconvenient doesn’t imply they’re entitled to a free go. Typically, the lawsuit is dismissed, and the debtor finally ends up owing much more as a result of authorized charges.
Even worse, if the lender decides to countersue for unpaid debt and authorized prices, the debtor could also be in a fair deeper monetary gap. The courtroom system isn’t sympathetic to individuals who file frivolous lawsuits in an try and keep away from monetary accountability. As an alternative of erasing their debt, they normally find yourself including to it.
9. Pretending to Have Amnesia or “Forgetting” In regards to the Debt
Some debt-dodgers suppose that enjoying dumb will get them off the hook. They declare they don’t keep in mind taking out the mortgage or opening the bank card, hoping the lender will simply drop it. Sadly for them, banks and collectors preserve data of each transaction, and conveniently “forgetting” doesn’t make the debt disappear.
Some scammers have even tried to faux amnesia or insist that another person fraudulently opened the account of their title. Whereas identification theft is an actual challenge, falsely claiming fraud is a critical 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 Tips Backfire?
Attempting to recreation the system to keep away from paying debt hardly ever works—and infrequently makes issues a lot worse. Individuals who try these ridiculous tips usually discover themselves dealing with:
- Lawsuits – Lenders can take authorized motion, resulting in courtroom judgments that make the debt even tougher to flee.
- Wage Garnishment – Courts can order a portion of the debtor’s paycheck to be robotically deducted to repay the debt.
- Ruined Credit score – Unpaid money owed and failed scams can destroy credit score scores, making it tough to purchase a house, get a job, and even lease an condo.
- Financial institution Account Freezes – Some lenders can get courtroom approval to freeze accounts, which means debtors can’t entry their very own cash.
- Prison Expenses – Fraudulent makes an attempt to keep away from debt, comparable to faking a dying or submitting false lawsuits, can result in fines and even jail time.
The Smarter Different: Dealing with Debt Head-On
As an alternative of attempting silly tips to get out of debt, folks ought to deal with actual options that really work. Choices like negotiating with lenders, establishing cost plans, consolidating debt, or working with a credit score counselor can assist folks get again on observe with out resorting to shady ways. In some instances, submitting for chapter might even be a professional final resort that wipes out sure money owed legally.
Debt can really feel overwhelming, however avoiding it—or attempting ridiculous schemes—will solely make issues worse. The neatest transfer is to take accountability, make a plan, and sort out the debt head-on earlier than it spirals uncontrolled.
Have you ever ever heard of somebody attempting a loopy trick to dodge debt? Share your ideas within the feedback!
Learn Extra:
Would Jesus Use a Credit Card? The Ethics of Debt in a Modern World
7 Unexpected Ways Hospitals Can Help 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 area. 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 function 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 abilities, with a particular deal with monetary literacy, the nuances of life, and the significance of interior peace.