I do have considerable savings but I also have a mortgage, so I'd come out of it positive. I'd carry on as before, as the years go by and I save up and pay into my mortgage I'm going to be in that position one day anyway. Most people have minimal savings and their debt will outstrip that. Only people who own their homes outright like retired people will come out of it poorly I suspect, and children who have trusts in their name (or even basic savings accounts) but are too young to incur debt. Well, surprise kids!

I think most people will go on a spending splurge and subsequently incur more debt. Banks would be all too eager to lend, now having reduced liabilities and more assets in the way of people's savings. The economy would expand that year and there would most likely be an increase in the inflation rate for a while too. We'd be left with a recession once the splurge was over.