You won't go to jail. It's not a crime to breach a contract, it is a tort.
You will hurt your credit, but IMO it is sometimes the best choice.
If you are spending all your money servicing debt, then anytime something bad happens, you have to go out and get more debt. It's a never ending cycling. (Just like the US economy is doing). The difference between the US and you is that you have a finite amount of debt you can accrue and the problems caused by walking away are small.
If you get where you feel you cannot pay, here's what I would do.
0) Change your cell phone number
1) Make a list of debts you need to service by amount
2) Try to figure out which ones you can pay
3) Try to save as much as you can...sell stuff, don't spend your tax refund, etc. This shall be your emergency fund.
4) Once you get $1 or 2k in the emergency fund, then try to save up on those debts you couldn't pay. They are probably now in collections.
5) Once you believe you have enough, call the smallest one and try to negotiate a payoff. Make sure they send you a letter that it's a payoff. Make sure you pay it via money order.
6) Repeat step 5.
5a) Walk away from those debts completely and save as much cash you can. Try to pay what you can in cash.
I am somewhat adopting number 5. While paying in credit has uses, even at zero interest it causes worry. Paying in cash has no worry. I am also trying to use companies that allow layaway. Layaway is a great mix of cash and credit. You are paying over time on a consistant basis towards a goal. However, if something happens, you can delay the payment or lower it.
