Infrequent domestic sovereign debt defaults can be beneficial for governments in certain situations. A model shows that defaulting can be optimal when it helps poorer citizens more than it harms wealthier ones. Repaying debt is good for accessing more loans and helping people smooth out their spending, but it also means higher taxes in the future. Defaulting is chosen when it benefits the less wealthy more than it hurts the rich, especially when public debt is high and owned by a small group. This model supports realistic debt levels and default rates.