Borrowing enables consumption smoothing over time and is therefore a central part of a well-functioning financial system. Swedish household indebtedness is high compared to many other countries and has increased faster than both GDP and disposable income in recent years. This is in part due to a prolonged period of historically low interest rates and rising housing prices. Household debt consists primarily of mortgage loans. However, loans without property as collateral constitute a not negligible part of hosuehold debt.