Most consumer debt is not in the form of a hard money loan (actual dollars) but rather by the money creation mechanisms (money multiplier) of our fractional reserve system. The money created by the loan was effectively "materialized out of thin air" although the debtor does enjoy enrichment from the receipt of the money.

Banks, on the other hand, won't be suffering if reforms are made; they will simply not be able to realize as much interest from the loans they issued.