1 hr 5 min
Managing, Collecting, and Forgiving Consumer Debt: Lessons for Policymakers and Business Leaders Family Finances - Events from the Aspen Institute Financial Security Program
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- Business
Before COVID-19, consumer debt in America was at an all-time high of over $14 trillion– exceeding 2008 debt levels in real terms– according to the New York Federal Reserve. During and after COVID-19, the unprecedented levels of unemployment will leave millions more in delinquency or default on their debt – and, potentially, bankrupt.
The good news is that some cities and states are acting to alleviate the burdens of government fines and fees, and limit collections actions during a time people need their stimulus payments to meet day-to-day needs. But what will happen when these alleviation actions end? What about consumer protections for the vast amounts of non-governmental debt? Will forgiving debt really build wealth equitably and support economic recovery?
Before COVID-19, consumer debt in America was at an all-time high of over $14 trillion– exceeding 2008 debt levels in real terms– according to the New York Federal Reserve. During and after COVID-19, the unprecedented levels of unemployment will leave millions more in delinquency or default on their debt – and, potentially, bankrupt.
The good news is that some cities and states are acting to alleviate the burdens of government fines and fees, and limit collections actions during a time people need their stimulus payments to meet day-to-day needs. But what will happen when these alleviation actions end? What about consumer protections for the vast amounts of non-governmental debt? Will forgiving debt really build wealth equitably and support economic recovery?
1 hr 5 min