Published: 12:31 AM, 29 October 2026
People Taking Loans to Survive Indicates Perilous Times Ahead
When people borrow money to invest in businesses, purchase homes, or expand productive activities, borrowing can contribute to economic growth. However, when ordinary people are forced to take loans to buy food, pay rent, cover medical expenses, and meet other basic needs, it signals a worrying economic reality. In Bangladesh, the growing pressure on household budgets, persistent inflation, rising living costs, and uncertain employment prospects are making it increasingly difficult for many families to make ends meet. The tendency to borrow simply to survive indicates that difficult times may lie ahead.
For low- and middle-income households, daily expenses have become a major source of anxiety. Prices of rice, vegetables, cooking oil, fish, meat, transportation, and other essentials consume a substantial portion of monthly income. Meanwhile, wages for many workers have not increased sufficiently to keep pace with the rising cost of living. As a result, families are cutting back on nonessential purchases, reducing food expenses, postponing medical treatment, or borrowing money to bridge the gap between income and expenditure.
The situation is particularly difficult for workers in the informal sector, including day laborers, street vendors, small shopkeepers, and transport workers. Their earnings are often irregular, and they may lack savings or access to affordable formal credit. When income suddenly declines or an unexpected expense arises, borrowing becomes an immediate necessity rather than a financial choice. Some turn to relatives and friends, while others depend on microfinance institutions, informal lenders, or digital lending arrangements that may carry substantial costs.
Borrowing for daily consumption can create a dangerous cycle. A family takes a loan to cover this month's expenses, only to discover that next month's income is insufficient to cover both regular costs and loan repayments. To repay the existing debt, it may borrow again. Over time, interest payments and repayment obligations consume an increasing share of household income, leaving even less money for food, education, health care, and other necessities.
The consequences extend beyond individual families. When households spend most of their income on essential goods and debt repayment, demand for other products and services weakens. Small businesses may experience declining sales, while families may withdraw children from educational activities or postpone investments in their future. Rising household indebtedness can therefore undermine both social welfare and economic growth.
The government must address the underlying causes rather than relying solely on short-term relief. Controlling inflation, creating stable employment, supporting small businesses, strengthening social safety nets, and ensuring fair wages are essential steps. Financial institutions and microcredit providers should also promote responsible lending and transparent repayment terms.
