My question is theoretical, I don't understand why people say that big piles of debt are dangerous. If one has a lot of unsecured debt and ends up defaulting on it then one does not even have to declare bankruptcy and part with one's assets. What are the bad consequences of defaulting on unsecured debt? I understand that there would be a certain difficulty getting new debt down the road, but what if one decides to never deal with the credit system again?
Some think that dealing with collectors is unpleasant, but that is probably the least unpleasant thing in this whole scenario. Nothing prevents one from just not responding to collectors' calls at all.
Update: Some have mentioned about or hinted irresponsibility with handling of money, but my question was not about it, I think too many personal emotions have been introduced into some responses. But even with that, consider a situation when lockdowns cause massive unemployment and it's not people's fault that they default on their debt when they are just forced out of their jobs and unemployment rate rises to all time highs (think about the Great Depression).