Today’s economy is not perfect, and one of the things that people are discussing as a solution is a debt jubilee. A debt jubilee is not a unique idea. It’s the concept that the country’s debt could simply be written off and eliminated. Yes, it would likely hurt creditors, but it would be a significant relief to debtors.
This idea has been around since around 2,300 B.C., where it was first seen in what is now modern-day Iraq. Back then, when a new ruler took over the throne, debt jubilees would be used to eliminate past debts among the people.
Americans have been warming up to the idea of a debt jubilee, because it could help reduce American debt to a manageable level. Some, like Senator Bernie Sanders, have recommended that all of the nation’s student debt be eliminated.
This isn’t a perfect solution for anyone, though, because while one person benefits, another may be harmed by the decision to discharge debt. Yes, a debt jubilee would give short-term relief to debtors, but it may end up bankrupting creditors, pension funds, insurance companies, banks and others. Stocks could plunge, and interest rates could rise.
For now, hoping for a debt jubilee is something that you can do, but you shouldn’t rely on it. If you have debt, you need to take steps to stop creditor harassment and get relief. Bankruptcy, for example, could help you much in the same was as a debt jubilee, and it’s much easier for you to attain. Your attorney can talk to you more if you’re interested in eliminating your debt.