Not very simple at all,
The people only have a finite amount of money coming in, so if by devaluation cost of the basic essentials goes up then the heirachy of needs comes into play
1/ Food
2/ Warmth
3/ Shelter
if the person has to pay more for the first two then ability to pay for such a big number three becomes impossible therefore causing more defaults and more reposessions.
To my limited understanding, devaluation helps nobody