Relief from austerity: the case for a targeted write-off of the UKs household debt stock

This paper explores the drastic, but arguably justified, solution of writing down high-cost debt. The only true way to get people out of the debt trap is to respond to the cause of the problem; the arguably irresponsible lending that has occurred. The situation is clearly out of control, it will take 26 years to pay off the average unsecured debt making minimum payments – so this is a generational issue. The paper analyses the issue through the role that central banks have played in the situation, and the use of direct monetary financing measures. The proposals put forward include to make zero cost credit availability for households the same way it is for banks, refund fees, charges and penalties, eliminate old debts and remove the debt collecting guidelines. This will debt the long-standing debt dependence and create a fairer credit system.