No you cannot be stopped at the airport because you have consumer debt or student loans, nor can you be arrested. You can travel freely even when you owe money. It can make it hard for creditors to catch up with you if you move to another country or plan an extended stay. That is not to say your credit situation will disappear while you’re abroad. You will still have to settle your debts, if you intend on returning home and it is not strictly impossible for creditors to catch up with you if you’ve left the country. Different countries are more helpful to creditors than others, so that would be a consideration if your intent is to leave your debt behind.
What are the Two Types of Debt?
There are two types of debt: Secured and Unsecured. An example of secured debt is a mortgage. It is secured because you have collateral. The home is your collateral so if you don’t pay the debt, your home can go into foreclosure and the bank will be able to recoup their money. If the amount you owe is greater than what your home was sold for, you will be ordered by a court to pay the balance owing. A car loan is also considered secured debt.
Credit card debt is an example of unsecured debt. It is not backed up by collateral since the money was leant to you based on your credit score, or put another way, how “credit worthy” you are. Other examples of unsecured debt are student loans, medical bills and personal loans. Failure to pay these loans results in the creditor reporting you to the credit bureau. Once this happens you may be contacted by a debt collector or be court ordered to pay the debt. If you have insufficient funds to do so, your wages may be garnished until the debt is paid.