When you default on your debt, it makes it much much harder on everyone else in the system. All other things being equal, your creditors (and their depositors) have to either accept lower interest rates as result of your irresponsibility or the other debtors have to be squeezed (1+1/n) times as hard, where n is the number of remaining debtors.
I am glad this cross-border credit reporting is becoming a thing, if anything.