This research from the ippr illustrates that reliance on debt – far from creating opportunity – has created vulnerability during this recession.
In the decade to 2008, average household debt in the UK increased substantially – from 93 to 161 per cent of disposable income. The profile of borrowers widened to include lower income groups, which some suggest has led to greater opportunities for social and economic inclusion. But low-income households are the ones that are most vulnerable to debt problems
The ippr’s research with 58 low income families aimed to understand what the expansion of household debt has meant for the lives of low-income families. In-depth interviews, an income and expenditure diary and regular telephone conversations over four months explored patterns of income, spending and borrowing.
The report is available to download from the ippr website.