In relating to this issue, Kamil (2007) claimed that debt has many negative implications on society and
nation and therefore should not be encouraged. Debt is in one of the principal causes of poverty; it has hampered
the economic development of indebted countries and has prevented them from investing in essential services such as
healthcare and education. For example, Ecuador spends 47% of its government income on servicing debt and only
12% on education and just 7% on healthcare. The reality is many poor countries are spending more on debt
repayments than on providing the most basic needs for their own people (J. Glennie, 2007).