Managing High Debt Levels: Strategies, Causes, and Impacts on Economic Stability

Aleke Jude Uchechukwu

Faculty of Economics and Management Kampala International University Uganda

Email: Jude.aleke@kiu.ac.ug; https://orcid.org/0009-0009-6807-9484

ABSTRACT

In recent years, the exponential growth of debt in many economic sectors, including people, enterprises, and governments, has emerged as a major worldwide issue, jeopardising economic stability. The high debt levels may be attributed to many factors, including stagnant earnings, increasing living expenditures, aggressive business development goals, and fiscal deficits. The ramifications of this buildup of debt are extensive, including serious financial hardship, reduced competitiveness, and decelerated economic development. This study analyses the causes and consequences of high levels of debt, highlighting the need for implementing efficient debt management techniques. Central strategies include improving financial literacy, advocating for responsible borrowing, adopting cautious financial management practices in firms, and attaining fiscal consolidation and structural changes at the governmental level. Furthermore, the study emphasizes the need for cutting-edge debt management strategies, such as the use of technology, to guarantee sustained economic strength and stability in the long run. This research emphasizes the crucial need to tackle excessive debt to avoid financial crises and maintain economic development in the presence of global economic difficulties.

Keywords: Debt Accumulation, Economic Stability, High Debt Levels, Financial Hardship, Competitiveness.

CITE AS: Aleke Jude Uchechukwu (2024). Managing High Debt Levels: Strategies, Causes, and Impacts on Economic Stability. NEWPORT INTERNATIONAL JOURNAL OF LAW, COMMUNICATION AND LANGUAGES,4(2): 7-12. https://doi.org/10.59298/NIJLCL/2024/4.2.712248