Lesson 6 of 7

Shocks: food and fuel prices, remittances and disasters

A borrower can stop paying even when the loan was affordable on the day it was made, because something can change afterwards: prices jump, a source of income dries up, or a disaster destroys what the household owns. This lesson describes the three kinds of shock, what international data show about each, and how a lender can prepare before one arrives.

Published 12 October 2026