Finance

What’s Next for Switzerland Under Sergio Ermotti’s Stewardship?

Published

3 years ago

March 29, 2023

Harry Williams

Switzerland has long been known for its banking prowess, but with the appointment of Sergio Ermotti as Chairman of UBS Group AG, there’s a new excitement in the air. As one of Switzerland’s most influential leaders, it’s clear that Ermotti will be instrumental in shaping the country’s future. But what exactly can we expect under his stewardship? In this blog post, we’ll take a closer look at what lies ahead for Switzerland and how Ermotti plans to lead the charge towards success. So sit back and get ready to discover just what could be next on the horizon for this dynamic nation!

The Economic Outlook

Since taking office as Swiss Federal President in January 2017, Sergio Ermotti has signaled that he is not afraid to make big changes. In his first month in office, Ermotti announced a plan to reduce Swiss bureaucracy and reform the economy; since then, he has accelerated reforms of labor regulations, tax laws, and the banking system.

Ermotti’s ambitious agenda has been met with mixed reactions from the Swiss people. Some are excited by the potential for increased economic growth, while others fear that large-scale reforms will damage Switzerland’s reputation. However, regardless of public opinion, Ermotti is determined to push forward with his reforms.

One of Ermotti’s most significant initiatives is his plan to reduce Switzerland’s reliance on foreign investment. To do this, Ermotti plans to reduce red tape and make it easier for businesses to get started. He also wants to create more jobs through investments in infrastructure and innovation.

Despite some bumps in the road, Switzerland’s economy continues to grow moderately despite global uncertainty. The Swiss franc remains strong against other currencies and the stock market is still among the most stable in Europe. As long as Sergio Ermotti remains in charge, Switzerland looks poised for continued economic growth and stability.

The Political Situation

Switzerland is currently under the leadership of Sergio Ermotti, who has been in office since 2007. Since then, he has worked to improve Switzerland’s economy and create a stable government. Ermotti is known for his calm demeanor and strong work ethic.

Ermotti is facing several challenges as he enters his sixth year in office. The first is the euro crisis. Switzerland has been a major player in the euro zone, and its banks have taken large losses on investments there. This has caused significant pressure on the Swiss franc, which is one of the euro zone’s two currencies.

The second challenge for Ermotti is immigration. Switzerland has seen an increase in asylum seekers, many of whom are coming from Syria. This has created tension between Swiss residents and immigrants, and it has led to protests on both sides of the issue.

Ermotti also faces criticism over his handling of the financial crisis. Many people believe that he could have done more to prevent it from happening, and they accuse him of being too close to the banking industry.

Immigration

Switzerland is under the stewardship of Sergio Ermotti, who was appointed Prime Minister in 2014. Mr. Ermotti has stated that he wants to see Switzerland become an open and inclusive society, while also retaining its strong economic foundation.

One of Mr. Ermotti’s main goals is to continue to attract foreign investment and foster a healthy business climate. To this end, he has made it a priority to reduce taxes and regulations, while also developing new technology infrastructure. He has also pledged to create more jobs, lower unemployment rates, and improve social welfare systems.

Mr. Ermotti’s goals are ambitious but achievable; under his watch, Switzerland has continued to prosper economically despite tough global conditions. While there are many uncertainties ahead, including Brexit and the U.S.-China trade war, Switzerland is positioned well for continued growth under Mr. Ermotti’s leadership

The Role of the Media

Switzerland’s Prime Minister, Sergio Ermotti, has announced his resignation after eight years in office. Ermotti, who was first elected to parliament in 1990 and became Prime Minister in 2006, will remain in his post until a new leader is elected by the Swiss people on December 10th.

Ermotti has been a controversial figure both within Switzerland and internationally. He has been criticised for being slow to address the country’s issues, and for his close ties to international financial institutions such as the IMF and World Bank. However, he is also credited with stabilising Switzerland’s economy following the global financial crisis of 2008-09, and for creating jobs through initiatives such as privatising state-owned companies.

The Swiss Federation will now have to search for a new Prime Minister, who will have to contend with a number of key challenges. The country faces an ageing population and low birth rates, which are projected to result in a labour shortage of up to 100 thousand positions by 2025. Ermotti also faced criticism over his handling of tax evasion allegations made against several high profile individuals – including FIFA president Sepp Blatter – which led to significant public protests earlier this year.

The Future of Swiss Banking

Sergio Ermotti, CEO of Swiss banking giant UBS, has announced his intention to step down from his role at the end of this year. He will be replaced by Peter Kurer, who currently serves as deputy CEO and head of global capital markets. The decision comes as a shock to many in the financial industry, as Ermotti has been widely considered one of Switzerland’s most successful banking leaders.

What might lie ahead for Swiss banking under Kurer’s leadership? In recent years, the country’s banks have been struggling to keep up with the increasing competition from abroad. This has led to increased scrutiny from regulators and shareholders alike, and UBS is no exception. In 2016, the bank was fined $780 million by US authorities for its role in the LIBOR rate-rigging scandal.

Swiss banks are also facing increased pressure to increase their share of private client assets (PCA) – a measure of financial strength that reflects how well a bank is performing relative to its peers – from both domestic and international investors. Banks that fail to meet these expectations can see their stock prices take a hit, which is something that UBS is already feeling the effects of.

Looking beyond UBS specifically, it’s worth keeping in mind that Switzerland isn’t alone when it comes to dealing with regulatory pressures and changing economic conditions. In fact, it’s one of a number of countries around the world that are facing increasingly competitive environments on all fronts: from

Conclusion

Switzerland has had a very exciting year under the stewardship of Sergio Ermotti. The country has seen a number of positive developments, including strengthening ties with important trading partners and emerging economies, as well as growing economic stability. Looking to 2020, there are several key areas in which Switzerland will continue to focus its efforts, such as boosting innovation and competitiveness, furthering social cohesion and improving public services. On a global scale, Switzerland will also aim to build on its strong bilateral relationships while continuing to support multilateral initiatives that contribute to peace and security. All in all, it is clear that Ermotti’s tenure has been immensely successful thus far – what’s next for Switzerland?

Author

Harry Williams

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Business

SAP ECC vs S/4HANA: A Practical Step-by-Step Guide for 2026

Published

2 days ago

January 9, 2026

navit13679

As we approach 2026, significant changes are on the horizon for businesses utilizing SAP systems. With SAP’s planned discontinuation of mainstream support for SAP ECC (Enterprise Central Component) coming in 2027, companies are feeling a heightened pressure to transition to SAP S/4HANA.

This shift is not merely a technical upgrade; it represents a strategic move toward future-proofing operations in an increasingly digital landscape.

However, many organizations continue to rely on customized ECC systems built over years, if not decades, complicating the decision to migrate. This blog will explain the differences between SAP ECC and S/4HANA, the importance of migrating well ahead of the 2027 deadline, and provide a straightforward guide to help you prepare for this pivotal transition.

SAP ECC

Understanding SAP ECC

SAP ECC has long served as a foundational component for enterprise operations across the globe. With robust modules for various functions—including finance, logistics, supply chain management, human resources, and manufacturing—ECC has established itself as a reliable solution.

Despite its strengths, ECC’s architecture now qualifies as legacy technology, especially when pitted against modern ERP solutions. It primarily operates on traditional relational databases, often featuring a complex web of custom code that can make upgrades both costly and cumbersome.

Key Features of SAP ECC

Database Independence: Operates on multiple databases like Oracle and SQL Server.
Complex Data Structures: Utilizes aggregated tables leading to intricate data handling.
User Interface: Based on a traditional SAP GUI that feels dated compared to modern standards.
Batch Job Dependency: Heavily relies on batch jobs for data processing.
Customized Environments: Many organizations have tailored ECC extensively to meet their requirements.

What is SAP S/4HANA?

SAP S/4HANA is a next-generation ERP solution designed to leverage SAP’s HANA in-memory database. This system distinguishes itself by processing data directly in memory, which allows for extremely high performance and real-time analytics.

S/4HANA isn’t merely a contemporary upgrade; it represents a fundamental rethinking of what an ERP system should be. Built to accommodate the demands of digital businesses, it embraces automation, AI-driven processes, and cloud technologies.

Key Features of SAP S/4HANA

Exclusive HANA Dependency: Runs solely on the SAP HANA database.
Simplified Data Models: Consolidates many data structures into a single source, reducing errors.
Modern User Experience: Utilizes SAP Fiori for an intuitive, mobile-responsive user interface.
Real-Time Processing: Eliminates the need for batch jobs, improving efficiency.
Cloud-Focused Flexibility: Available as a cloud, on-premises, or hybrid solution.

Comparing SAP ECC and S/4HANA

Understanding the differences between SAP ECC and S/4HANA is critical for making an informed migration decision:

Database Requirements: ECC can operate on various databases, whereas S/4HANA is exclusive to the HANA database.
Performance Metrics: S/4HANA’s in-memory functioning enables near-instantaneous data processing, while ECC often takes significantly longer, especially for complex reports.
Data Management: ECC operates with separate tables for transactions, indices, and aggregates, while S/4HANA merges these into a streamlined data model.
User Interface: The traditional SAP GUI in ECC is functional but outdated, whereas S/4HANA’s Fiori apps offer a modern, user-centric experience.
Functional Enhancements: S/4HANA introduces features like predictive accounting, the Universal Journal, and embedded analytics, which are unavailable in ECC.
Innovation Focus: Future SAP innovations will solely target S/4HANA, leaving ECC behind.

Why Migrating Before 2027 Is Essential

SAP has extended certain support timelines; however, the mainstream support for ECC will end in 2027. Companies can opt for costly extended support until 2030, but waiting until then bears considerable risks:

Increased Migration Costs: As deadlines loom, finding qualified S/4HANA experts may become more challenging and expensive.
Operational Risks: Operating critical business processes on outdated software presents unnecessary risks.
Competitive Disadvantage: Companies on S/4HANA enjoy benefits like faster reporting, improved data-driven decision-making, and seamless automation—gains that delayed migration could cost you.
Growing Technical Debt: Prolonged delays can complicate the transition, making it both costly and complex.

Advantages of Migrating to S/4HANA in 2026

Adopting S/4HANA offers numerous benefits, whether you choose a cloud-based or on-premise system:

Real-Time Decision Making: With built-in analytics, you can access live data without batch delays.
Enhanced Processes and Speed: The simplified data model leads to reduced latency and quicker reporting capabilities.
Modern User Experience: Fiori provides a seamless workflow, minimizing training requirements while boosting user satisfaction.
Integrated Intelligence: S/4HANA incorporates machine learning for repetitive tasks and AI-driven recommendations for strategic insights.
Cloud Compatibility: As cloud strategies evolve, S/4HANA aligns well with contemporary IT infrastructures.
Reduced Long-Term Costs: Organizations typically report lower expenses related to hardware, maintenance, and process inefficiencies after migrating.

Anticipating Migration Challenges

Preparation is vital; migration involves hurdles that can be managed with foresight:

Data Cleanup: Many organizations need to streamline years of outdated data before the transition.
Custom Code Compatibility: Altered customizations may need evaluation for compatibility with S/4HANA.
Workflow Redesign: Aligning existing workflows with new S/4HANA best practices will be necessary.
Integration Management: Ensuring that all integrations remain functional post-migration is critical.
Organizational Change Management: Preparing users through training and support is vital to a smooth transition.

Awareness of these common challenges allows businesses to plan effectively, avoiding delays and budget overruns.

A Step-by-Step Migration Roadmap for 2026

Here’s a practical guide to facilitate your migration to S/4HANA:

Step 1: Conduct a System Readiness Check

Utilize SAP tools to assess:

Custom code and add-ons
Data quality and integration points
Compatibility issues

This evaluation will offer clarity regarding the migration effort required.

Step 2: Select Your Migration Approach

Businesses have three primary options:

Brownfield (System Conversion): Maintain existing ECC processes while converting to S/4HANA. This approach is typically faster and less expensive, suitable for organizations with well-established processes.
Greenfield (New Implementation): Start afresh by redesigning processes. This approach works best for outdated or heavily customized ECC systems.
Selective Transformation: Blend both previous methods, migrating only specific processes or data, offering flexibility for unique organizational structures.

Step 3: Establish a Data Strategy

Determine:

What data to migrate
What data to archive
What to clean or eliminate

Proper data preparation is crucial for a successful transition.

Step 4: Review and Optimize Custom Code

Employ SAP tools to find:

Unused custom code
Code needing adaptation
Code that can be replaced with modern solutions

This modernization reduces effort and minimizes technical debt.

Step 5: Redesign Business Processes

Reevaluate finance, procurement, manufacturing, sales, and supply chain processes in light of new S/4HANA best practices, seeking automation opportunities.

Step 6: Prepare Infrastructure

Select your infrastructure option: on-premises, private cloud, or public cloud. Cloud deployments often come with faster implementation and lower ownership costs.

Step 7: Execute Technical Migration

This phase includes:

Database transition to HANA
System conversion
Functional testing and performance checks

Step 8: Train Users

Training is essential, as users will need to acclimate to both Fiori and new processes.

Step 9: Go Live & Hypercare

Conduct rehearsals for the cutover, address issues promptly, and provide user support throughout the transition.

Step 10: Continuous Optimization

Post-launch, focus on:

Enhancing automation
Refining reporting processes
Creating new dashboards
Expanding cloud integration efforts

S/4HANA is built for long-term growth and adaptability, so continuous improvement is key.

Conclusions: The Path Forward in 2026

For organizations still using ECC by 2026, the evidence is clear: transitioning to S/4HANA is not merely an option; it’s a strategic necessity. ECC will soon lose mainstream support, and innovation is concentrated solely on S/4HANA. By migrating sooner, businesses can mitigate risks, control costs, and leverage the full benefits of an advanced, intelligent ERP platform designed for the future.

As the 2026 deadline approaches, it is essential for organizations to begin planning their migration strategy today, ensuring they are poised for long-term success.

Author

navit13679

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Business

1099-MISC vs 1099-NEC: A Guide for Business Tax Reporting

Published

2 days ago

January 9, 2026

booksmerge

3.Navigating the world of tax forms can be daunting, and you’re not alone if tax paperwork has kept you awake at night. Knowing the difference between Form 1099-MISC and Form 1099-NEC can save you a lot of hassle, potential penalties, and money. This article demystifies the two forms, highlighting when to use each and providing actionable guidance—all based on the latest IRS regulations.

Why the Distinction Matters

In 2020, the IRS reintroduced Form 1099-NEC to specifically report nonemployee compensation, separating it from the other miscellaneous payments recorded on 1099-MISC.

This change means that only a few categories of payments remain on the 1099-MISC form. Filing the incorrect form can lead to misreporting income, which may trigger IRS penalties and compliance issues, as well as create confusion for your payees.

What is 1099-NEC, and When Should You Use It?

Form 1099-NEC (Nonemployee Compensation) is specifically designed for reporting payments made to nonemployees for services. Under this form, payments of $600 or more made during the tax year are reported.

Use 1099-NEC in the Following Scenarios:

Payment for Services: If you’ve paid someone who isn’t your employee (no W-2), you would typically use this form.
Independent Contractors: This includes freelancers and other business service providers who have performed work for you.
Threshold Amount: You should use this form only if the total payments made to the recipient reach $600 or more during the year.

Common Use Cases for 1099-NEC Include:

Contractor fees
Freelance work
Consulting services
Legal or professional service payments

Filing Deadline

Make sure to file Form 1099-NEC by January 31 for both paper and electronic submissions.

What is 1099-MISC, and When Should You Use It?

Form 1099-MISC (Miscellaneous Information) is used for reporting payments that do not fall under nonemployee compensation.

Use 1099-MISC When You Make Payments Such As:

Rent Payments: Payments to landlords for your office space or property.
Prizes and Awards: Payments for non-service-related winnings.
Medical Payments: Any healthcare-related expenses that fit certain criteria.
Payments to Attorneys: Gross proceeds for legal settlements, although fees for legal services should be reported using 1099-NEC.

Other Payments Include:

Broker payments in lieu of dividends
Royalties and specific agricultural incomes

Filing Deadlines

The deadline for filing 1099-MISC is February 28 if you are filing via paper, and March 31 for electronic submissions.

Real-World Examples

Freelance Work:
- You hire a graphic designer and pay them $2,500 throughout the year → use 1099-NEC, box 1.
Rent:
- You pay a landlord $7,200 for office space over the year → use 1099-MISC, box 1.
Legal Advice:
- You pay a lawyer $5,000 for consultation but not settlement → report with 1099-NEC.
Prizes:
- You award a prize worth $1,000 → this needs a 1099-MISC.

These distinctions are vital as they inform both the IRS and the recipient about the nature of the payment.

What Changed and Why It Matters

Before the tax year 2020, nonemployee compensation was reported on 1099-MISC (specifically box 7), which often led to confusion and mismatched deadlines.

By reintroducing Form 1099-NEC, the IRS aimed to simplify the reporting process and align it with wage forms like the W-2. The January 31 deadline now provides a uniform timeline, reducing confusion and promoting timely submissions.

Continuing to use 1099-MISC for contractor payments can lead to significant compliance problems and tax errors, so it’s essential to know what’s changed.

Actions Businesses Should Take

1. Collect W-9 Forms:

At the time of payment or contract setup, ensure that you collect a filled-out IRS Form W-9. This form provides you with the necessary taxpayer identification number (TIN) and legal name of the service recipient.

2. Track Payments Throughout the Year:

Keep a record of different types of payments made, distinguishing between services, rent, and non-service-related payments.

3. Use the Correct Form:

File 1099-NEC for service payments equal to or greater than $600 made to nonemployees, or use 1099-MISC for other relevant payments.

4. Meet Filing Deadlines:

Remember the deadlines: January 31 for 1099-NEC and February 28 (paper) or March 31 (electronic) for 1099-MISC.

5. Furnish Copies and Retain Records:

Provide each recipient with their copy and keep your records for several years, just in case of an audit.

Common Confusions and How to Avoid Them

Payment Method Confusion

Sometimes, payments made through third-party processors (e.g., PayPal or credit cards) can complicate the reporting process. Verify if you need a 1099-NEC or if you need Form 1099-K, which is typically handled by the processor.

Distinguishing Payments

It’s important to recognize payments related to rent or royalties—they belong on 1099-MISC, not on 1099-NEC.

Legal Payments

If you are paying for legal services, report it using 1099-NEC. However, gross proceeds for settlements should be reported using 1099-MISC on box 10.

How BooksMerge Can Help

At BooksMerge, we specialize in simplifying the complexities of tax forms for businesses. We categorize payments accurately, prepare and file your 1099-MISC or 1099-NEC forms in a timely manner, and keep your records organized and ready for any audits. Whether you’re handling payroll, contractor payments, rent, or attorney fees, we ensure that you stay compliant with IRS rules with minimal stress.

Frequently Asked Questions (FAQs)

1. I paid a contractor $500—do I need to file a 1099-NEC?

No, the threshold for nonemployee compensation is $600. Payments below that amount do not require Form 1099-NEC.

2. I also paid rent to a property owner—should I use 1099-NEC?

No, rent payments are reported on 1099-MISC. The 1099-NEC form should only be used for nonemployee service payments.

3. What about payments to attorneys for legal settlements?

Legal settlement proceeds are reported on 1099-MISC (box 10), while payments for legal services should go on 1099-NEC (box 1).

4. Do I need to collect a W-9 form from contractors?

Yes, getting a completed Form W-9 is essential to ensure you have the right TIN before issuing a 1099-NEC.

5.What happens if I file late or make a mistake?

Filing errors can lead to IRS notifications or penalties. It’s always best to file accurately and on time or issue corrections promptly.

Conclusion

Understanding the difference between 1099-MISC and 1099-NEC is essential for businesses that deal with contractors, rent, or miscellaneous income. Use 1099-NEC for nonemployee compensation, while 1099-MISC is reserved for other types of payments like rent, royalties, and awards. Adhere to filing deadlines and maintain meticulous records to ensure compliance.

If you prefer to avoid the headache of tax paperwork, BooksMerge is here to support you. We can help you efficiently navigate the process of issuing, filing, and managing all your 1099s to keep you IRS-compliant and stress-free.

Author

booksmerge

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Business

Strategies to Improve Your Credit Score in 2026: A Complete Guide

Published

2 days ago

January 9, 2026

loanquantum

Improving your credit score in 2026 is no longer just a financial goal—it has become a necessity for anyone planning to borrow money, apply for a home loan, take a personal loan, or secure a business loan. Lenders rely heavily on your credit score to decide your eligibility, your interest rate, and even the total loan amount they are willing to offer.

A strong score increases your chances of getting loans at affordable interest rates and a manageable loan EMI, while a weak score makes borrowing more stressful and expensive.

If you’re planning to apply for credit anytime soon, here are the most effective and practical ways to boost your credit score quickly in 2026.

Start by Checking Your Credit Report Carefully

Many people never look at their credit report, but this is the first step towards improvement. Errors such as incorrect loan details, duplicate accounts, or wrongly reported late payments can bring your score down significantly.

In 2026, credit bureaus offer easy online access to your report, so reviewing it regularly is simple and important. If you discover errors, file a dispute right away to have them fixed.

Pay All Your Loan EMIs and Credit Card Bills on Time

Timely repayment is the biggest contributor to a strong credit score. Whether it’s a personal loan EMI, home loan EMI, business loan EMI, or credit card bill—every payment matters.

Even a single missed EMI can reduce your score and affect future loan approvals. To make sure you never forget due dates, set up recurring payments or reminders. Consistent repayment builds trust with lenders and boosts your score faster than anything else.

Lower Your Credit Card Utilization

The amount of your credit limit that you use is referred to as credit utilization. Using more than 30% of your limit signals financial stress, which can reduce your score.

Try to keep your usage low, especially if you expect to apply for a loan soon. Higher utilization also increases the chances of a bigger loan EMI burden later. By keeping your spending controlled, you show lenders that you can manage credit responsibly.

Avoid Too Many Loan Applications at Once

The lender reviews your credit record each time you apply for a loan or credit card. This is known as a hard inquiry and can temporarily lower your score.

If you submit multiple loan applications in a short period, lenders may assume you are credit-hungry. Instead of applying everywhere, compare interest rates first using online loan calculators. Once you know which lender suits your EMI budget, apply to only one or two options.

Clear Outstanding Dues and Overdue EMIs Immediately

If you have pending EMIs or overdue credit card payments, make them a priority. Unpaid dues drag down your score month after month. Clearing them shows a fast positive impact on your credit profile.

If you are struggling to pay a loan EMI, consider restructuring, reducing interest rates, or opting for a balance transfer to ease your repayment load.

Maintain Older Credit Accounts

Older accounts help build a strong credit history. Many borrowers close their first credit card or their oldest loan account after repayment, but this can shorten your credit history, which negatively impacts your score.

Maintaining long-standing credit relationships shows lenders stability and maturity, which can help improve your score in 2026.

Add a Mix of Different Credit Types

A healthy mix of loan types—credit cards, personal loans, car loans, or home loans—helps improve your credit profile. Borrowers who can responsibly handle various forms of borrowing are preferred by lenders. But take loans only when necessary and always calculate your EMI beforehand to avoid over-borrowing.

A loan EMI calculator helps you understand your monthly obligations clearly, keeping your debt under control and helping your score improve safely.

Use Loan EMI Calculators Before Borrowing

Before applying for any loan, calculate the EMI carefully. Choosing a high EMI can lead to future defaults, late payments, or financial stress. Using a loan EMI calculator, you may comprehend:

How much monthly EMI fits your budget

Whether the interest rate is manageable

How long you should set the loan tenure
Planning ahead prevents delays in repayment, which directly improves your credit score.

Keep Your Debt-to-Income Ratio Low

A high debt burden compared to your income makes lenders doubt your repayment ability. If your loan EMIs take up most of your monthly income, it shows you are financially stretched, which can reduce your credit score.

Try to finish off smaller loans first or increase your income sources. A healthy debt-to-income ratio helps you qualify for better loan offers and interest rates.

Be Consistent, Even if Progress Seems Slow

Credit score improvement doesn’t happen overnight, but consistent habits bring noticeable results within a few months. Timely EMI payments, low utilization, avoiding unnecessary loans, and maintaining your financial discipline will steadily increase your score through 2026. Lenders value long-term reliability more than quick fixes.

Final Thoughts

Improving your credit score in 2026 isn’t just about accessing loans—it’s about creating long-term financial stability and opening doors to better opportunities. A strong score gives you negotiation power, lower interest rates, and higher loan eligibility, whether you’re planning a personal loan, home loan, business loan, or even a small emergency credit line.

Lenders look at your credit score as a reflection of your financial discipline, and the habits you build today can shape your borrowing journey for years.

While there’s no instant formula for raising your score overnight, consistent and responsible financial behavior delivers quick and visible results.

Simple actions like paying your loan EMIs on time, reducing credit card usage, avoiding unnecessary loan applications, and monitoring your credit report regularly play a major role in strengthening your profile. These habits not only help you meet lender expectations but also protect you from falling into high-interest debt traps.