Cramdown is already allowed for other forms of consumer debt, such as mortgages on holiday homes.
The spreads on other types of debt, such as corporate bonds, had barely shifted.
In countries where households and firms have a lot of debt, such as China, this is especially true.
Without the programme, he said, he would have been less open to taking on more debt, such as a mortgage.
You can also pay off other types of consumer debt, such as credit card balances and auto loans.
Falling interest rates have helped to create new markets in high-yielding debt, such as junk bonds.
"How is that OK?" he asked, while acknowledging the difference between secured debt, such as a home loan, and unsecured debt on credit cards.
The charity said that since the economic crisis, problems with consumer debt such as credit cards and personal loans have fallen significantly.
"Remortgaging to repay expensive debt such as credit cards and personal loans is sensible as mortgage rates are lower than unsecured borrowing," he says.
The borrowed money is therefore being used for consumer spending or to pay off unsecured debt, such as credit cards and personal loans.
Facilitated by financial innovation, consumers responded to crimped wages by monetizing their assets in forms of debt such as home-equity loans.
