In this study, we explore the relationship between the debt service ratio (DSR) and individual borrowers' ability to … withstand shocks in Malaysia. Using a micro-level dataset that matches borrowers' debt and income, we quantify the financial … financial and economic shocks on debt repayment, cost of living and variable income. The simulation allows us to differentiate …

countries. A global view of their external debt situation reveals some alarming realities. …

significant number of debtors with overdue debts permanently escape from debt collectors. Accordingly, in our sample, overdue … a poverty trap mechanism exacerbating financial exclusion, hence resulting in significant losses for both the individual … and society. We recommend paying more attention to smoothing credit cycles and resolving non-performing debt obligations. …