Why do households repay their debt during COVID 19 crisis? well-being and financial implications.

The project examines the impact of the pandemic and government interventions on household debt repayments and on household financial resilience, measured as months during which households can pay for subsistence consumption and debt with liquid assets in case of income loss. Lockdowns by reducing household spending and employment stimulus packages (i.e. furloughing) have affected debt repayments. Monetary expansion and debt repayment moratoriums have reduced household debt burdens. In addition, household specific characteristics, such as ethnicity, age, gender, assets, health, employment could interact with the above. The project uses a plethora of data to analyse household debt repayments and financial resilience also in light that supportive government interventions are going to be faced out while also lockdowns vary.