The decision by the Croatian government to cancel the debts of its poorest citizens highlights the price of consumer debt on the whole of society, as Carl Packman explains The experience of being heavily in debt can often feel like the old saying: running in order to stand still. You could be holding down more than one job or working as many hours as is possible, reducing your household costs and even, in extreme cases, going without meals or modest luxuries like holidays or mobile phones. But at the end of the month you find that the lion’s share of your pay has been spent servicing debts. It doesn’t make very good financial sense for large numbers of people to be overburdened with personal debts. Economic growth needs confident consumers, and confident consumers need money in their back pockets; what they don’t need is to be piling debts on top of one … (To read the full article, subscribe below)
Carl Packman is a writer, researcher and blogger. His latest book is Payday Lending: Global Growth of the High-Cost Credit Market, published by Palgrave Macmillan in 2014.
Subscribe to New Start
Full access to all New Start content is just £49 + VAT per year (25% discount for group subscriptions of 5 or more subscribers)