Sure, but you'd be encouraged to make sure you had long-standing, slow-paying debts at all times or you'd be missing out on free money. I'd be taking out a few

Sure, but you'd be encouraged to make sure you had long-standing, slow-paying debts at all times or you'd be missing out on free money. I'd be taking out a few 30 year mortgages if this were a thing and probably borrowing against equity in my home to dump back into the market on some lower risk items. If you can service reasonably cheap debt and still live decently you may as well take it because a "debt jubilee" is like a lottery win if you happen to hit one in your lifetime, and I'm assuming you'd have them more frequently than that? My best guess: debt would be dramatically more expensive as lenders would have to factor it into the price, and home affordability for young people would drop even lower than it is today if this were a thing. Debt jubilees would seem to actually entrench the current upper and middle classes.