Let's just say that practically, strategically defaulting makes financial sense in certain circumstances. The fact is smart businesses do it all the time in order to protect investors and shareholders. It's all about what's in the best financial interest of the business.
THAT SAID...the decision to strategically default is much more complicated for the individual and their family. Our daily research shows that there is a moral and ethical TUG OF WAR about whether it's right to just NOT PAY a debt, even if you have the money. Questions about values abound, seemingly and inextricably linked to perceptions of When Is It OK to Break A Deal. In general, once we sign the dotted line, we are (psychologically) chained to that deal. No key until the deal is over.
Well, it ends up being a very personal choice, so let's look at some personal expressions about strategic defaults. This post is the first Act of a continuing play that we will present to you as time goes on...
This writer powerfully links his and other active duty soldiers experience with purchasing a property and watching as all of the equity is wiped out. It's a good read on the moral and ethical questions some soldiers may have regarding whether to strategically default. Read the post : Strategic default: a soldier’s perspective - www.interfluidity.com.