Eventually, it catches up with you, and either austerity ensues or you go bankrupt. Happened to me a couple of times as a kid (via my parents, not my spending of course).

What does it mean for an individual to go bankrupt? [genuinely curious]

It means you're fucked. Your name is dirt after that. You'll never get credit again.

Never being seven years.

I guess it depends on where you live.

In my community, nobody of consequence, let alone credit providers, would forget within 7yrs.

Further, there are other consequences eg. you'd be barred from holding public office.

Your community sucks in this regard. Bankruptcy is not like that in the US.

It doesn't have to mean being in debt, although I think for a lot it does. It can just be living paycheck to paycheck through most of their life and using credit to buy things they can't afford. The worst part beyond the stress it puts on a family is reality is forced on them around retirement, when it is really too late to change anything.

> do you just die with a huge debt

People do die with large amounts of debt, this is not unheard of.