It can also lead to a breakdown of morality. If your boss asks you to do something you find to be immoral how ready are you to say no if you have a 30 year mortgage on your home? Multiply that by 50 million current mortgages in the United States and here we are.
Very good point. When Islam says that lending is only done as an act of charity (0% interest), it means that we should not have a society that is built on debt. Easy debt means that now you have very large swathes of society enslaved in loans. This is not how to run a proper society.
