Skuldbördan

Skuldbördan is a Swedish term that denotes the burden of debt on borrowers or the economy. The word combines skuld (debt) and bördan (the burden). In economic discourse it is used to describe how large a debt load is relative to income, output, or fiscal capacity. The concept applies to households, firms, and public sector debt and is central to discussions of financial stability and sustainability.

Measurements vary by context. For households, the key indicator is the debt service burden—annual interest payments plus amortization as a share of disposable income. For governments, indicators include debt-to-GDP and the debt service burden as a share of revenue or expenditures. The burden depends on interest rates, growth, inflation, and the debt’s maturity structure.

Impacts of a high skuldbördan include reduced consumption, slower investment, and greater vulnerability to shocks. A high debt service burden may crowd out other priorities and complicate policy during downturns. The distribution of the burden matters, since lower-income households often face higher relative costs.

In Sweden, skuldbördan has featured prominently in discussions of rising household borrowing linked to the housing market, as well as in debates on public debt and macroeconomic stability. Policymakers use macroprudential tools to curb credit growth and manage household debt, such as limits on loan-to-value ratios and amortization requirements, alongside fiscal rules aimed at debt sustainability.

The term is widely used in Swedish economic journalism and policy analysis and is also encountered in international discussions of debt sustainability and macrofinancial risk.