Use of credit and arrears on debt among low-income families in the United Kingdom

Authors: Bridges S.¹; Disney R.²

Source: Fiscal Studies, Volume 25, Number 1, March 2004 , pp. 1-25(25)

Publisher: Institute for Fiscal Studies

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Abstract:

Household accumulation of debt and arrears on debt, especially among low-income families, is an extremely topical issue in the UK media and in policy circles. This paper utilises data from the UK’s Survey of Low Income Families in order to examine use of credit, and default and arrears, among low-income families with children. It shows how credit use and accumulation of arrears differ between single parents and couples with children, and also between homeowners and renters. It also briefly examines the persistence of arrears on specific forms of credit using the panel element of the data-set, now named the Families and Children Survey.

Keywords: consumer economics; personal finance; debt; empirical analysis

Document Type: Research article

Affiliations: 1: Experian Centre for Economic Modelling, School of Economics, University of Nottingham. 2: Experian Centre for Economic Modelling, School of Economics, University of Nottingham; Institute for Fiscal Studies.

Publication date: 2004-03-01