When a country refuses to pay their debts it is called repudiation. Generally, countries fear that if they were to stop paying they would lose access to credit and international financial and trade markets, as a result of strong actions by the creditors. Despite the risk, many people in the Global South have called for this action and discussed banding indebted countries together into a "debtors cartel" to repudiate the debt as a group.

When the creditors retaliate, the countries can trade with one another. While this has yet to come to pass, some of the larger indebted countries have considered similar action, often in terms of diverting resources to fight AIDS or other social needs.

Jubilee USA Network's position is that if a country decides to repudiate their debts we will call on the United States and other creditors not to retaliate, but recognize the justice of this action.