Recent reports have suggested an increase in financially-related suicides in India. For example, a Mumbai couple last month killed themselves by poison after their son and daughter had hanged themselves. The family had at least 73 credit cards, and the children had a bank loan to start a new business.
Unpleasant stories, but with a very real human point. One of the worst aspects of being in financial trouble is the inability to see a way out. Those who are proud may see bankruptcy as humiliation. But equally, they may see it as impossible to earn their way out of a crisis. In the coming year, we would do well to adapt our global culture to allow a responsible, socially-acceptable path to rehabilitation for those caught in impossible situations.
I suggest that when a person or business defaults, a bank threatening action should be legally required to offer a referral of the defaulter to an independent agency which can represent them and offer them alternative courses of action. This would remove the aggressive one-sidedness of the default process, and perhaps lead to fewer emotional casualties.
