Do you have a moral obligation to repay your debts?

b4freedom · #1 (**permalink**) 06-17-2008, 08:48 PM

Let’s assume you have $75,000 in credit card debt. And one day you realize that you just can’t repay it. So you don’t. You struggle to pay some. But most of the time you don’t.
Do you have a moral obligation to repay your debts?

What if the debt is from cars, parties, electronics, and tons of junk?
What if all the debt was from hospital bills due to illness?
What if the CC companies call you and offer you 50% off to settle? Would it be morally wrong to accept the offer? Have you shirked some moral obligations? What if you had the cash to settle but just didn't want to?

Does the West have a moral obligation to cancel third world debt?

What makes repaying debts moral?

sweeps · #2 (**permalink**) 06-17-2008, 09:12 PM

Yes, you have a moral obligation to pay your debts. Otherwise you are stealing.

You also have a moral obligation to help the needy if you can afford to do so. However, I won't go so far and say we are morally obligated to cancel 3rd world debt -- that is a complicated issue.

Daylily · #3 (**permalink**) 06-17-2008, 09:14 PM

1. If someone has catastrophic medical needs that result in huge bills then I completely understand that such person would potentially need to declare bankruptcy. This is not a failing of the person, but a failing of the U.S. health insurance and social welfare system.

2. For credit card debt, I can understand settling for a reduced payment IF the balance has ballooned because of compound interest and repeated late fees. The person should at least pay back the amount of goods and services that were charged plus a reasonable interest rate.

3. The West does not have a moral obligation to cancel third world debt. If by 'the West' you are referring largely to the U.S., we need to work on our own national debt situation first.

4. What makes repaying debts moral? Not doing otherwise, is the same as STEALING.

tripods68 · #4 (**permalink**) 06-17-2008, 10:21 PM

Interesting.

In a society where the people is governed the rules of law, it is the obligation of every citizen whenever debt is incurred be paid back. Repayment of debt benefit society as a whole. In ancient times, the man who owed a debt he could not pay was held as a "slave" by his creditors until he worked off his debt or it was paid for him by his friends.

A rich country like the United States has obligations to somewhat discount third world debt if The people (Congress) consent. For example, when dictatorship like Ferdinand Marcos of the Philippines ruled for over three decades borrowed Billions from abroad that included the United States. Marcos used those money to suppressed democracy and human rights against his people. When he lost powers (i.e. Assassinated) 1986, the Philippines owed 28 Billions to foreign creditors and Marco's personal wealth was estimated to be 10 Billion. In this particular case, it would be wrong for the United States to forgive its debt entirely. But they did it anyway. The United States was partly at fault. But the US had other vested interest in the Philippines at that time, like maintaining US present throughout ASIA through its US bases (Subic and Clark AFB) especially during the Vietnam War.

What about China's ability to accumulate Trillions of US Treasurers. Do we hold them responsibility for suppressing democracy and violating Human Rights? We threaten them with Sanctions each time without real teeth behind it.

But a country impoverished like the Ethiopia for example where thousand of people dies each year because of starvation. The United States has an obligations to provide Foreign Aid Relief to help its dying people and even wipe its debt obligations if its necessary.

DebbieL · #5 (**permalink**) 06-18-2008, 10:33 AM

Yes - you have an obligation to pay off debt that you racked up on credit cards. You got the goods, and you have to pay for them. End of story.

Caoineag · #6 (**permalink**) 06-18-2008, 01:08 PM

I consider it both lying and stealing to not repay. People are loaned money with the understanding that they will repay because that is what they promised. I don't however consider the insane fees tacked on after the fact to be part of that deal. Settling is fine if that is all a person can do because it shows that person is at least trying to keep his/her word.

LivingAlmostLarge · #7 (**permalink**) 06-18-2008, 01:19 PM

Yes you do. I don't get why so many people who are debt free or anti-debt, have been able to "compromise" their morals and settle with credit card companies or doctors for their bills.

They charged it, they should pay for it. BUT so many of these anti-debt crusaders say they were given CC they couldn't afford. So it's not their fault. They were "bitten" by snakes. It's not their fault, but the CC problem.

Which I don't get because honestly who doesn't know that if you charge something you have to pay for it? I mean these people say they don't understand CC, but then they charge for 5 or 10 years? How long does it take to understand it?

DebbieL · #8 (**permalink**) 06-19-2008, 10:45 AM

I totally agree Livingalmostlarge. I've never understood the mindset. Nobody has a gun to your head making you buy things on credit. I use credit cards, but I pay them off each month - they are a great tool when used properly. If I don't have the self-discipline to know how much I can handle, how is that anyone else's fault? My credit cards haven't cost me one penny (and I get cash back every year).

LuxLiving · #9 (**permalink**) 06-19-2008, 01:16 PM

Here's a good explanation from a Scriptural view:
On Debt and Borrowing What Do The Scriptures Teach

Gruntina · #10 (**permalink**) 06-19-2008, 03:41 PM

After my divorce, I had no job and 65K in credit card debts. I thought I would never be out of this nightmare no matter how hard I worked to pay it off.

I rolled up my sleeves and worked 2-3 jobs earning the most money I can while living cheaply as I can. Fortunately I was single and lived as a roommate with someone with a disability in exchanged for free rent as long as I keep watch throughout the night and assist the person most weekend with shopping, cleaning, driving them around.
It was hard but after 5-6 years, I finally did it! I am now debt free except for the mortgage and partial auto loan but absolutely no credit card or personal loans.

Because of my experience, I hold on to my money and clutch my purse strap at all times. I also have my life back again to the point where I can sleep at night again and enjoy hanging out with my husband.

maat55 · #11 (**permalink**) 06-19-2008, 05:52 PM

I think people who aquire large sums of debt do so because they were negligent in their financial management. I first believe you should not buy anything you can't afford. Second, you should carry insurance to advoid medical bills.

Many people claim they cannot afford to manage money this way but I disagree. I think they just have a lack of knowledge and priority. I used to sit around and drink beer and smoke ciggerettes saying that I couldn't afford insurance.

Those who have truly attempted to secure their finances and have a disaster happen causing BK doesn't bother me, but my guess is that a majority of the BK's are due to personal negligence.

If you prioritize to be debtfree, have an EF and carry insurance before you give yourself any luxuries, you are not likely to have to file BK, IMO.

Daylily · #12 (**permalink**) 06-19-2008, 08:34 PM

Quote:

Originally Posted by Gruntina

After my divorce, I had no job and 65K in credit card debts. I thought I would never be out of this nightmare no matter how hard I worked to pay it off.

I rolled up my sleeves and worked 2-3 jobs earning the most money I can while living cheaply as I can. Fortunately I was single and lived as a roommate with someone with a disability in exchanged for free rent as long as I keep watch throughout the night and assist the person most weekend with shopping, cleaning, driving them around.
It was hard but after 5-6 years, I finally did it! I am now debt free except for the mortgage and partial auto loan but absolutely no credit card or personal loans.

Because of my experience, I hold on to my money and clutch my purse strap at all times. I also have my life back again to the point where I can sleep at night again and enjoy hanging out with my husband.

What a great financial comeback story. Thanks for sharing with us and congratulations.

Bruce Wayne · #13 (**permalink**) 06-20-2008, 09:31 AM

Yes, I think you should always try and repay your debts. Put yourself in their shoes and you'd no doubt want to be repaid.

cptacek · #14 (**permalink**) 06-20-2008, 02:50 PM

Yes, you borrowed the money, you should pay it back.

There could be extenuating circumstances. Catastrophic medical is probably one exception I see, maybe. Being stupid (living beyond your means, as one example) is not.

The U.S. does not have a moral obligation to forgive other countries' debts. However, if that tactic is used as an incentive that gives us something of value, then I'm ok with it.

rob62521 · #15 (**permalink**) 06-23-2008, 08:18 AM

I would say if one decided to run up those credit card bills, then that person should pay what they owe. If they don't, everyone else has to by higher prices, fees, interest, etc.

antiver · #16 (**permalink**) 06-24-2008, 05:10 PM

I wouldn't call it a moral obligation, so much as you dug yourself a big hole and Darwinism is about to kick your butt if you don't do something about it.

DebbieL · #17 (**permalink**) 06-25-2008, 02:14 PM

How is it not a moral obligation? When you sign your name and take possession of the goods (or make use of the service), you are PROMISING to pay for the item/service. What if it were the other way around and you prepaid for something - does the supplier have a moral obligation to supply you with what you have prepaid for once they already have your money? Of course they do. You have a moral obligation to pay for what you buy, otherwise how is it any different than going into a store and shoplifting?

ActYourWage · #18 (**permalink**) 06-25-2008, 02:22 PM

Yes, one needs to repay debt.

rob62521 · #19 (**permalink**) 06-25-2008, 03:18 PM

Quote:

Originally Posted by DebbieL

How is it not a moral obligation? When you sign your name and take possession of the goods (or make use of the service), you are PROMISING to pay for the item/service. What if it were the other way around and you prepaid for something - does the supplier have a moral obligation to supply you with what you have prepaid for once they already have your money? Of course they do. You have a moral obligation to pay for what you buy, otherwise how is it any different than going into a store and shoplifting?

I know on some of the credit card slips I've signed, it says "I promise to pay such and such credit card company the total". Not paying it back would mean you don't live up to that promise which is part of one's morals or lack thereof.