Emerging Themes in Household Debt and Their Impact on the Economy

Emerging themes 1
Emerging themes
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Emerging themes 2
Emerging themes
Task one.
The article, “Household debt: statistics and impact on the economy,” the author discusses
various issues in regard to household debt and their influence on the economy. Some of the key
factors which the article covers include emerging technologies, emerging work environment, and
changes in society especially lifestyle, among others. According to Katherine (2012, P.24),
Household debts are the money borrowed by people for their personal use. This could be
mortgages, student loans among others. Most of these companies lending money include banks
and other financial institutions.
One of the emerging themes discussed from the article is the use of technology in the
banking sector to enhance security. According to Celeste & Alla (2014, P.11), banks have been
losing a lot due to improper ways of handling loan borrowers and therefore most of them are
establishing proper means to handle the issue, like for example, introducing artificial
intelligence. In this case, machines are designed in a way in which they work the same as human
beings and can notice the person borrowing for the second time because once fingerprints have
been detected in the systems would be hard to erase them (Soengman 2015, p. 6). The article also
highlights emerging changes in society as easy accessibility for loans has made it possible for
many people to change their lifestyles. Additionally, the article also discusses the emerging work
environment which allows a banking institution to lower the workload by enabling its customers
to attain services through online transactions.
These emerging themes have various impacts on individuals, the society, the lending
institutions, and the economy. For example, emerging technologies have enabled lending

Emerging themes 3
institutions to avoid losing a lot of money to people who borrow from them twice using different
identities (Andrea 2010, p. 13). the emerging changes in the society, like for instance, the
demand for better lifestyles have made Household debt to increase, hence boosting the economy
of the country because many people are able to buy goods and services hence increasing business
revenues and profits (William & IIsung 2013, P.21). It has also made lending institutions to lend
more loans, hence assisting them to attain high profits after the payments the use of online
transactions have led to significant changes in the work environment through reducing workforce
as people know do not require to visit the banks every now and then to be given services. Better
work environment has not only benefited employees but also the banking institutions as it has
reduced the rate of employee turnover.
Task two
Emerging technology, emerging changes in the society and emerging work environment
have positive impacts on business operations and a company would be able to achieve its major
goals in a span of 5 years (Cordon 2015, p. 56). These factors will not only affect the institution,
but also its customers, the industry and competitors, the government and other stakeholders. For
example, as time goes on, all of them are likely to make customers attain more loans, unlike in
the past where most of them found it challenging due to lack of collaterals and other
requirements (Purva 2016, p. 78). In the next five years, these themes will make the government
to view banks as important institutions because as many customers continue to borrow loans,
these organizations make higher revenue and therefore contribute to enhancing the economy
(Chian-son 2014, p. 548). Generally, with a span of five years, these themes will change