> So explain it to an outsider. Why did both of you pay exactly, what
> was the "or else"?
I can't speak for shag, but credit cards are almost always unsecured debt, meaning, they can't do anything to you. They can't take your car, house, or even get a court judgment -- the debt is unsecured by any collateral, which is why they charge those outrageous interest rates. If they report the debt lost, your credit rating will take a hit, but that's about the only real penalty.
-- DRR (had to file bankruptcy, so I found out the hard way)