Re: the intangibility of debt. When I was 20 or so, I took out a $5,000 personal loan and a credit card with a $5,000 limit. The loan was to pay for the removal of my wisdom teeth and the credit card was because I thought it was just a thing adults are supposed to have.
I ended up moving overseas for two years instead of making any attempt to pay them off, and in that absence they just… lost track of me.
A few years later, I applied to get a copy of my credit report and there was no record of either of the defaults.
The only info they had on me was an address I used to live at, and one of the many jobs I’d (officially) worked at. There was almost no detail whatsoever. I’m not off-grid or anything; I’m on the electoral roll and I pay taxes so it’s not hard to find me.
So, yeah. I don’t think the whole red letter, scary-scary, “protect your credit rating at all costs” thing is real.
I think I probably got lucky – but only a bit. It was two unrelated financial institutions, so I think it must be pretty common. I figure the people who attend to low-level debt are just random people who aren’t great at their jobs and don’t care about them (nor should they), so of course it doesn’t get tracked well.
I don’t know if I can go as far as actually recommending people just stop paying their consumer debts off, but I can definitely recommend that people not feel like they are under a perpetual dark cloud. Because the bank sure as hell as isn’t thinking about it.