Evelyn Cox
The COVID-19 pandemic has had a profound impact on global economies and individual households, exacerbating pre-existing financial vulnerabilities and creating new ones. This article examines the relationship between the COVID-19 crisis and household overindebtedness, with a particular focus on the role of debt and financial literacy. The pandemic has led to increased unemployment, reduced income, and heightened financial insecurity, driving many households into deeper debt. At the same time, financial literacy plays a crucial role in mitigating these adverse effects by enabling individuals to make informed financial decisions. This comprehensive analysis draws on a wide range of literature to explore the multifaceted impacts of the pandemic on household debt levels and the importance of financial literacy in navigating these challenges. The findings highlight the need for targeted policy interventions to support financially vulnerable households and enhance financial education programs.
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