Personal Debt

“Neither a borrower nor a lender be,” advised Shakespeare’s Polonius. These words seem hopelessly out of touch in cost of living crisis with soaring inflation and astronomical levels of personal debt. The charity StepChange has warned that money borrowed by UK households to pay for Christmas could take years to repay. Meanwhile, a study by the Resolution Foundation suggests the British public are the worst in the developed world at saving. How did we get here?

For some, our eye-popping indebtedness begins with a failure of personal responsibility, an absence of prudence, and an inability to discern between our ‘wants’ and needs’. For others, the real problem is systemic, where borrowers are victims of a consumerist society that both pressurises and stigmatises the poorest. Pragmatists argue that debt itself is morally neutral and merely part of the furniture of modern life. Free market libertarians see debt as a democratising force, giving people greater personal agency. Whereas many religious and philosophical traditions have long believed that there is something intrinsically immoral about charging interest on lending.

Is debt inevitable? Or a moral failing? If so, whose?

Producer: Dan Tierney.