Indebtedness, Over-Indebtedness and Wellbeing

The indebtedness and possible over-indebtedness of households have attracted attention in academic research and in society at large. In this chapter, we summarize current research on indebtedness and over-indebtedness with especial emphasis on efforts and attempts to derive a more precise and applicable definition of the concept of over-indebtedness. With a more nuanced definition of the concept that can be operationalized in practice, one can more accurately estimate the societal costs of over-indebtedness. Particularly important, it makes it possible also to conduct more in-depth studies about the implications of indebtedness and over-indebtedness for the physical and psychological wellbeing of young adults. Relying on the distinction between active and passive over-indebtedness, we argue that the causality between indebtedness, over-indebtedness, and health is not necessarily unilateral.