He writes,

Obviously, some individuals borrow too much, and get caught in a spiral of high interest rate payments, bankruptcy, and insufficient assets as they age. Nevertheless, on the whole the growth of credit instruments available to consumers has been a positive development that helps finance investments in education and other human capital, and produces a more optimal consumption profile over the lifecycle.

It is fashionable to bemoan the decline of saving and the growth of consumer credit. The Nobel Laureate offers a more nuanced perspective. Read the whole thing.