Tangled Up in Debt: Household Debt Rollover and Expenditures in Rural India

In many contexts of the global South, households cope with financial pressure by borrowing from one source to repay another, a practice referred to as debt rollover (or "juggling debt"). In this article, I provide a quantitative and longitudinal analysis of household debt rollover in rural Tamil Nadu, India. Using unique panel data collected between 2010 and 2020-2021, I measure the incidence, intensity and inequalities of debt rollover, and I examine its association with household expenditures. I show that the prevalence and magnitude of debt rollover more than doubled over the decade, disproportionately affecting lower caste groups. Women are significantly more likely to take on debt to meet existing obligations. Debt rollover is also associated with lower expenditures on food and health, highlighting how these financial pressures shape household welfare. By quantifying these dynamics, I show how debt obligations reorient expenditures away from essential needs. More broadly, this article contributes to debates on financialization by showing how everyday debt practices are embedded in social inequalities and contribute to the reproduction of inequalities over time.