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There are two kinds of credit... secured and unsecured. If someone, like the credit card companies, are willing to give out unsecured credit, then it is they who take on the risk and it is they that should take the hit if a person decides not to pay. The choice of the individual to replay based on the agreed payment plan should determine the individuals credit rating and that can be used to define the level of risk for any future lender. But to say that a borrower MUST repay unsecured credit is absurd... it's unsecured! Meaning there is no security that the loan will be paid back beyond the word of the borrower. Lender beware, if you want a secured loan, get collateral, else don't whine when the borrower goes belly up.