Does Forgiving Debt Automatically Improve Well-Being?

Sep. 30, 2024

Neale Mahoney, Professor in the Department of Economics at Stanford University discusses his research, revealing that debt relief may not automatically lead to improvements in financial and mental well-being.

Portrait of Neal Mahoney

Mahoney was recently in Stockholm to speak at a conference hosted by the Swedish House of Finance titled "Rethinking Household Debt Relief: Should Swedes Be More Forgiving?". In this interview, he discussed:

  • The effectiveness—or lack thereof—of debt forgiveness programs.
  • Addressing common assumptions about the impact of debt relief on financial and mental health.
  • Recommendations for policymakers and financial institutions in designing effective debt relief programs.
  • If debt relief programs to prevent a larger crisis.