One has to maintain those debts in the interim, unless you’re suggesting banks are offering 7 year no payment loans or equally long deferrals. Being able to weather inflation in the rest of one’s life is the problem. I’d love 1000% inflation on the money I use to pay my mortgage, but 1000% inflation at the till would be devastating. For people even mildly leveraged high inflation is painful because everything but their debt gets more expensive. Low inflation helps ease large debt obligations, but even moderate inflation will see tens of thousands of people squeezed too hard causing defaults which creates more homeless people and deaths from treatable conditions. All this said, one can try to time the market by making foreseeable purchases before inflation takes root. It seems that this time has passed for most things, but those who bought houses and cars in 2019 likely saw significant free equity. Without incoming increasing at the pace of inflation people are being slowly forced into poverty by the machinations of the capital class and their stooges.

People don't take payday loans so they can let the relative value of that loan drop.