On October 20, 2025, two pressing but seemingly disparate issues—personal debt management and the global value of water—are drawing renewed attention. While one concerns the daily grind of paying off credit cards and payday loans, the other revolves around how societies and economies value, finance, and safeguard water resources. Yet, at their core, both stories share a common thread: the challenge of recognizing and managing value, whether it’s financial or environmental, and the impact this has on people’s lives.
According to new research reported by BBC Morning Live, Britons juggling multiple debts now take, on average, three and a half years to pay off what they owe. Strikingly, four in five of these individuals have never even considered debt consolidation—a financial strategy that can, under the right conditions, simplify repayments and potentially reduce the overall cost of borrowing. Finance expert Laura Pomfret joined the BBC studio to break down how consolidation works, when it can help, and when it can backfire.
Debt consolidation, as explained by Pomfret, involves taking out a new loan to pay off all existing debts, leaving the borrower with a single fixed monthly payment to one lender. For instance, someone with £3,000 on a credit card, £1,500 on a store card, and £1,000 on an overdraft—£5,500 in total—might be paying around £200 a month across these debts. Yet, because of compounding interest, they may never fully clear the balances. By switching to a consolidation loan of £5,500 over five years at 11.9% APR, the borrower could fix their payments at about £122 per month and clear the debt in full within that period. The total interest would be around £1,800, which is often less than what they’d pay if they kept the debts separate, according to the BBC.
But as Pomfret and debt charities like StepChange warn, consolidation is not a magic bullet. It works best for those in a stable financial position, with manageable debts and a commitment to paying them off. Simplifying repayments can reduce the mental strain of juggling multiple due dates and interest rates, and, if payments are made on time, consolidation can help rebuild a damaged credit record. "It can make sense if you have a regular income, are not relying on credit to pay for essentials, and can trust yourself not to build up new debt once your balances are cleared," Pomfret noted on BBC Morning Live.
Yet, there are pitfalls. Some consolidation loans are secured, meaning a home or another asset is at risk if repayments are missed. Even with unsecured loans, a longer repayment term might lower the monthly bill but increase the total interest paid over time. There’s also a behavioral risk: clearing credit cards with a new loan, then using those cards again, can lead to two layers of debt instead of one. Fees, such as set-up charges or early repayment penalties, can also eat into any savings. And, perhaps most critically, consolidation does not address the underlying causes of debt, such as overspending or unstable income. Without a realistic budget or support, borrowers can find themselves back in trouble within months.
For those facing more acute financial difficulty, Pomfret advises turning to charities such as StepChange, National Debtline, or Citizens Advice. These organizations can arrange Debt Management Plans or help people access the government’s Breathing Space scheme, which pauses interest and enforcement for 60 days, giving breathing room to those struggling to meet repayments.
The story of payday loans in the UK serves as a cautionary tale. In the early 2010s, companies like Wonga and QuickQuid offered easy access to short-term cash at eye-watering interest rates—Wonga’s typical APR exceeded 4,000%. After widespread complaints, the Financial Conduct Authority stepped in, capping the total cost of borrowing at 100% and limiting default fees to £15. Yet, high-cost short-term credit hasn’t disappeared; it’s simply rebranded as "flexible credit" or "short-term personal loans." A recent Living Wage Foundation survey found that 17% of workers earning below the real living wage took out a payday loan in the past year. Despite regulatory changes, these products still appeal to those with low or unstable incomes and can trap borrowers in cycles of dependency.
Pomfret recommends exploring safer alternatives, such as credit-union loans or local welfare schemes, and always comparing the total cost of borrowing—not just the monthly payment. "Before taking out any loan, always: Compare the total cost, not just the monthly payment. Check whether the loan is secured or unsecured. Look for fees such as set-up costs or early repayment penalties. Be aware that multiple applications in a short period can harm your credit score," she advised on the BBC.
While individual financial health is vital, the value of water—another essential resource—often goes unmeasured or misunderstood on a global scale. As highlighted in a recent World Economic Forum article, water’s full value is vast and multidimensional, yet it’s often overlooked in investment decisions. In 2021, the total use value of freshwater was estimated at $58 trillion, or 60% of global GDP. What’s even more surprising is that indirect values—such as water purification, flood mitigation, and carbon sequestration—are seven times greater than direct uses like drinking or irrigation, but they remain largely absent from economic models.
Chronic underinvestment is evident in cities worldwide, where about 40% of treated water is lost to leaks. Agriculture, which accounts for roughly 70% of global freshwater use, could unlock significant value through improved irrigation and management practices, enhancing both livelihoods and food security. The social implications are stark: women and girls spend a collective 200 million hours each day collecting water, and households in informal settlements can pay up to 10 times more per litre than those with piped connections.
Despite water’s critical importance, only 3.1% of total official development assistance worldwide—about $8.5 billion in 2022—was directed toward water supply and sanitation, and private sector participation remains modest at less than 2%. Recognizing water’s full value is the first step to overcoming these investment barriers, the World Economic Forum notes. When the economic, social, and environmental importance of water is fully understood, financing systems must evolve to reflect this multidimensional worth.
Several tools and frameworks are now emerging to help measure and operationalize water’s value. The Global Common Good Framework treats water as a global commons, emphasizing that upstream actions affect downstream communities and even global climate systems. The Total Economic Valuation (TEV) framework captures the full spectrum of water benefits, including non-use and societal values. For example, a TEV assessment of Beyşehir Lake in Turkey estimated its value at TRY 271 million, or 13% of the local sub-catchment’s GDP, and found that municipal uses delivered over nine times more value per cubic metre than irrigation.
At the 2025 World Economic Forum in Davos, the Water Impact Assessment Tool was launched, quantifying the societal benefits of investing in safe water access and translating abstract values into actionable metrics. This tool supports evidence-based decision-making, strategic impact measurement, and prioritization of high-impact interventions—especially in underserved regions.
Other initiatives, such as the Valuing Water Initiative, the Ceres Valuing Water Finance Initiative, and the WWF Water Risk Filter, further help organizations and governments assess, prioritize, and manage water-related risks and opportunities. These tools aim to foster collaboration, transparency, and accountability in water management.
As the 2026 UN Water Conference approaches, co-hosted by Senegal and the United Arab Emirates, the focus will be on accelerating collective action to achieve Sustainable Development Goal 6: ensuring availability and sustainable management of water and sanitation for all. The message is clear: valuing water is the foundation of water resilience, and investment is key to unlocking that value.
Whether it’s the challenge of managing personal debt or the imperative to finance and protect water systems, the underlying lesson is the same: understanding true value—financial or environmental—is the first step to making better decisions, for individuals and for society at large.