Massive Credit Card Debt and Overspending

Q: I have a friend who is $118,560 in credit card debt and won't quit spending or take responsibility. In fact she gives out everyone elses info to be reached. Can she be helded accountable or could these companies press charges, maybe even impose a jail sentence?

A: Your friend has a serious problem, as you know. It could be a spending addiction, but it could also be another type of addiction that is resulting in irresponsible financial behavior. The best expert on this topic is Doug Thorburn and you will find more information about his work at http://www.preventragedy.com/ He has several books and articles I'd recommend you check out.

As for the legal ramifications of the debt, unless your friend has a lot of financial resources, it sounds like she is heading toward being unable to pay the debt. The result will be collections, lawsuits and perhaps even bankruptcy. Although we don't have debtor's prison in America, certain types of fraud (bounced checks, for example) can result in prosecution and possibly jail time, so I would recommend she talk with a consumer law attorney with a debt collection/bankruptcy experience as soon as possible to try to get some assistance in resolving the debt.

Unfortunately, you won't be able to solve her problem for her, but perhaps what you learn will be helpful as she recognizes the mess she is in and decides she is ready to get help.