Why don't more people run up their credit cards and skip the country?

Question

If I total up the amount available on my unsecured line of credit and the limits on my credit cards, it comes to over $100,000. This amount of money would last a long, long time in somewhere like Honduras or the south Pacific. What is stopping me from withdrawing to the limit on all of these at once and then fleeing the country? Why don't we read about this happening more often?

Answer 1

It's harder than you think.

Once card companies start seeing your debt to credit line ratios climb, they will slash your credit lines quickly. Also, cash credit lines are always much smaller, so in reality, such a scheme would require you to buy goods that can be converted to cash, which dilutes your gains and makes it more likely that you're going to get detected and busted.

Think of the other problems. Where do you store your ill-gotten gains? How do you get the money out of the country? How will your actions affect your family and friends?

Also, most people are basically good people -- the prospect of defrauding $100k, leaving family and friends behind and living some anonymous life in a third world country isn't an appealing one. If you are criminally inclined, building up a great credit history is not very practical -- most criminals are by nature reactive and want quick results.

Answer 2

Because most people aren't willing to sacrifice their ability to live in the US for 100k.

Remember that you can't pull this off multiple times easily. So as a one and done kind of deal, 100k isn't a great trade for the right to live in tthe US or whatever country you have roots in, particularly once you factor in:

• If you have 100k in credit on cards, you are likely well-employed with some savings
• you can't easily convert that credit to cash. Sure, you can try to buy gift cards and whatnot, but they may not be accepted at Casa de Honduras Hotel for Refugees, and it's not like you can pay with the cc cards- once you stop paying and go on the lam, they'll cut you off.

Answer 3

Quality of life, success and happiness are three factors that are self define by each individual. Most of the time all three factors go hand by hand with your ability to generate wealth and save. Actually, a recent study showed that there were more happy families with savings than with expensive products (car, jewelry and others).

These 3 factors, will be very difficult to maintain after someone commit such action. First, because you will fear every interaction with the origin of the money. Second, because every individual has a notion of wrong doing. Third, for the reasons that Jaydles express.

Also, most cards, will call you and stop the cards ability to give money, if they see an abusive pattern.

Ether, skipping your country has some adverse psychological impact in the family and individual that most of the time 100K is not enough to motivate such change.

Thanks for reading. Geo

Answer 4

Even if you could get it with no major hassle, $100,000 is just not that much money.

In a cheap third world country, as an expat you're looking at spending about $800-$2000/month, plus unexpected expenses. Locals live on less, but very few of us would be happy with the lifestyle of a Honduran or Thai farmer. Your 100k will last 4-10 years. This is hardly a great deal considering you're cutting off ties back home and almost becoming a fugitive. With USD going down the drain (e.g. in Thailand it went down 25% down in 3 years), this period would probably be even shorter.

Of course, you could work in the new country, but if you do then you don't need 100k to start with. They could improve your security, but from that standpoint being able to go back and work in your home country is worth more.