In theory it's correct. However, this is going to work only until a person collects negative entries on their credit report. Once they accumulate and your FICO score drops, it's incredibly difficult to add new debt to it as lenders become rightfully suspicious and deny loans/credit cards/bank accounts, etc.
Granted, bankruptcy is an option, it will then take 10 years for the bankruptcy to clear of your record, but in the meantime, the individual can rebuild their credit by small steps. How often can one play the bankruptcy card? Depends on how long one lives, given the fact that it takes 10 years to clear completely.
The American system works on a debt to income ratio and even though Jesse may disagree with this, the FICO scores are not taken lightly in the USA. (This doesn't change the fact that the way the FICO is calculated is utter BS) In order to build credit, one has to owe money and proof their worthiness by repaying debt on time. It's a backwards system where people get rewarded for "being in the hole".
Now that, I 100% agree with. We can tell anyone to take a hike, and as far as i know, there's no credit score for a country, or the proverbial collection agency that reminds the USA that we owe an ungodly amount of money to other countries...
M.
