Seems a bit general. Sweden is very much in debt because of the housing market. 15 years ago there were little regulation. You could get a 100 year mortgage with a variable rate and no money down. At the same time the government sold large amounts of public housing at below public market rate. Interest rates went from ~4% to ~1.5%. With no wealth or property taxes, but with tax deductions for renovations and interest rate payments. Most apartment buildings are co-ops, where the co-op have loans as well. Gradually there have been more regulation, but most still have variable rate mortgages which they are personally liable for and with no real a way to declare bankruptcy. Now interest rates will probably reach 4% again so hang on I guess.