Personal Debt in Europe: The EU Financial Market and Consumer Insolvency

Personal debt is an important factor in many economic models, but its sustainability is an ongoing question with social and economic implications. Federico Ferretti and Daniela Vandone examine the dark side of personal debt in Europe, using cross-country consumer-level data to present empirical studies and discuss insolvency legislation and harmonisation initiatives.

Format: Paperback / softback
Length: 256 pages
Publication date: 26 May 2022
Publisher: Cambridge University Press

Personal debt continues to hold significant importance in numerous economic models, as it incentivizes individuals to utilize debt for financing consumption. The sustainability of this model for individuals and the countries they reside in remains a complex and multifaceted issue, with far-reaching social and economic ramifications. Not only do the burdened individuals and their countries face significant challenges, but the European Union (EU) as a whole also grapples with these implications. In their book, Personal Debt in Europe, Federico Ferretti and Daniela Vandone delve into the darker aspects of personal debt, specifically over-indebtedness, from social and economic perspectives and legal dimensions. Through the use of cross-country consumer-level data, they present the latest empirical studies on the problem, analyze these findings to gain a deeper understanding of its nature and causes, and engage in discussions about the merits of proposed insolvency legislation and harmonization initiatives within the EU.

The authors begin by providing an overview of personal debt in Europe, highlighting its prevalence and the various factors contributing to its growth. They note that the COVID-19 pandemic has further exacerbated the issue, with many individuals and households struggling to make ends meet due to job losses, reduced income, and increased expenses. The book then delves into the legal aspects of personal debt, exploring the various regulations and laws in place to protect consumers and creditors. The authors discuss the role of bankruptcy laws, debt relief programs, and consumer protection agencies in mitigating the negative consequences of over-indebtedness.

Furthermore, the book examines the social and economic implications of personal debt. The authors argue that over-indebtedness can lead to a range of negative outcomes, including financial instability, reduced economic growth, and social inequality. They explore the impact of personal debt on individuals' mental health, family relationships, and overall well-being, highlighting the need for policies and initiatives to address this issue. The authors also discuss the role of education and financial literacy in preventing over-indebtedness and promoting responsible financial behavior.

In conclusion, Personal Debt in Europe offers a comprehensive and insightful examination of the complex issue of personal debt in Europe. By employing cross-country consumer-level data and a multidisciplinary approach, the authors provide valuable insights into the nature, causes, and legal dimensions of over-indebtedness. The book highlights the urgent need for policies and initiatives to address this issue, promoting financial stability, economic growth, and social well-being for individuals and the EU as a whole.

Weight: 351g
ISBN-13: 9781108445474