Does Forgiving Debt Automatically Improve Well-Being?

Neale Mahoney, Professor in the Department of Economics at Stanford University, recently visited 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 shares insights from his research, revealing that debt relief may not automatically lead to improvements in financial and mental well-being.
0:00 Video starts
0:14 What surprised you the most about the effectiveness-or lack thereof-of debt forgiveness programs?
01:04 Many people assume that forgiving debt will automatically improve financial well-being and mental health. Is this true?
01:33 Any examples?
02:14 Are there types of debt relief or economic policies that could have a more direct positive impact on struggling housholds?
02:49 How can policymakers and financial institutions design more effective debt relief programs, particularly as countries like Sweden face increasing personal and household debt?
03:35 Can debt relief programs help prevent a larger crisis?
04:13 If not debt forgiveness, what other policies can be put in place to relieve the impact of rising debt?