If we all stopped paying our debts, nothing would happen to us.
Its when some of us stop paying and others don't that we get into trouble... :p
Discussion
If we all stopped paying our debts, everything would grind to a halt and people would start dying off en mass.
Electricity would be the first to go. Then trash collection and food delivery. Then schools and hospitals would close and plumbing would cease to work...
Not all people have debts. I don't have for example. That means debt is not necessary. So... Maybe people should avoid having debts. Btw i suspect you agree with that. So what will happen in this case? I mean when a significant amount of people avoid having debt.
This is not a thing because the government has debts in our name. Everyone is in debt, even people who just arrived here or were born.
Ok. Then what if a significant portion of individuals don't have loans?
And by the way government debt is a different matter.
I haven't had so much as a credit card in fifteen years. Not that I ever had a problem with the card, i just don't like the possibility.
No debts that others can call in means we have more resilience than the average citizen in a Stage One or Stage Two collapse.