Its no fun being in debt. Creditors want to chase you, the debts increase as you procrastinate about paying them, and you literally feel indebted and guilty, especially if those creditors are friends or family.
There are studies about the effects of debt on personal well-being. Micro-economists have also gathered evidence that poor people are the most likely to be caught in vicious cycles as the stress of being in debt limits rational decision-making capacity. Hence, many countries have national debt helplines people can call to get objective advice on their financial problems. And more and more foreign aid is being targeted at mental health services for poor people.
Yet when it comes to debates about debt at the national level, little…
Read the full article at: https://www.lowyinstitute.org/the-interpreter/china-and-debt-dilemma