Tomorrow's borrowers: personal debt by 2025 and the policy response

Document type
Report
Corporate author(s)
Smith Institute (1997-)
Publisher
Smith Institute
Date of publication
1 November 2013
Subject(s)
Poverty Alleviation Welfare Benefits and Financial Inclusion
Collection
Social welfare
Material type
Reports

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This report suggests that urgent action is needed to stop the UK sleep walking into a major personal debt crisis. It concludes that an economic recovery will not by itself reduce the risk of problem debt. Personal indebtedness is likely to carry on increasing, with greater levels of unmanageable debt among both low and middle income households.

The report shows that on current trends it will take longer to pay off the debts incurred in youth. By 2025 there will be many more single and older people trapped in problem debt. To mitigate the risks to tomorrow’s borrowers the report calls on government to take immediate action, including a national government-backed campaign to make people more aware of the risks of taking on high cost credit and offer better incentives to save.

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