Where Does the Money go? Credit and Debt today

The extent of personal debt in the UK and its impacts are key policy issues. However, there is a lack of an in-depth understanding of the interaction between debt and income – and specifically poverty – over time. A dynamic approach is needed to unpack these complex inter-relationships, examining the interplay between debt and poverty over time.

Although policy acknowledges the association between low income and debt, the link between debt and poverty has not been explored in depth or from a dynamic perspective. This project will provide new insights into how debt is defined and experienced over time by households on low incomes, thereby informing policy aimed at reducing the numbers of over-indebted people and supporting those who experience over-indebtedness and financial crisis. The study will also inform financial inclusion policy through contributing to understanding of the strategies that are adopted by households in financial difficulties.

This project started in March 2008 and completed in March 2010. The project was sponsored by the Joseph Rowntree Foundation.

Sponsor
Joseph Rowntree Foundation

Project team
Chris Dearden, Noel Smith, Grahame Whitfield, Lynne Cox, Jackie Goode, Viet-Hai Phung and Nicola Selby.

Relevant Publications
Dearden, C., Goode, J., Whitfield, G. and Cox. L. (2010) Credit and debt in low-income families. York: Joseph Rowntree Foundation.

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