How big is the problem?
Over-indebtedness is difficult to measure. There is no
nationally representative survey that measures people’s debts
against their ability to pay, and it is difficult to identify how
much money is needed to maintain a reasonable standard of living,
because it will vary between individuals depending on a number of
factors.
However, there are indicators of levels of
debt, and of the numbers of consumers writing debt off:
For data and research on the scale of the problem as it changes,
the following links may be of use:
Bank of England sources
Lending to
individuals
The Bank of England provides a monthly release
of growth rates, amounts outstanding and changes in total lending
to individuals. This is broken down into both lending secured
on dwellings and consumer credit.
Credit conditions survey
The credit conditions survey asks bank and
non-bank lenders about the past three months and the coming three
months. It covers secured and unsecured lending to households and
small businesses; and lending to non-financial corporations, and to
non-bank financial firms.
Trends in lending
The trends in lending survey provides data on
aspects of lending to the UK corporate and household sectors.
Bank of England data set (LPQVTYC)
This data set provides an aggregate of total
lending in the economy. It shows quarterly 12 month growth
rate of total sterling net lending to individuals and housing
associations (in percent seasonally adjusted). Data is
available from 1963 to present day.
Other sources
Insolvency Service
The Insolvency Service provides statistics on
insolvencies and court based debt solutions.
Social research providing data on individual household’s
financial situation
Wealth
and Assets Survey
The Wealth and Assets Survey provides
information on the economic well-being of households and
individuals in Great Britain. In particular the survey asks people
about their assets and liabilities in order to estimate household
and personal wealth.
Families and Children Study
Formerly known as the Survey of Low Income Families (SOLIF), the
Families and Children Study (FACS) is a representative study of all
families in Britain. It is a ‘true panel’ study, whereby 1999
respondents have been re-interviewed in subsequent annual waves
from 2000 to 2004. It is designed to collect information
about health, education, work, income, childcare and the wellbeing
of children. In addition the FACS asks how households are getting
on financially and therefore provides a picture of families’ debt
situation.
British
Home Panel Survey
The British home panel survey provides further
understanding of social and economic change at the individual and
household level in Britain to identify, model and forecast such
changes, their causes and consequences in relation to a range of
socio-economic variables.
Organisations with expertise in this area
The following organisations and centres of
expertise have further information on consumer
over-indebtedness.
Money Advice Trust
infohub
The Personal Finance
Research Centre at Bristol University
The Nottingham
University Centre for Finance and Credit Markets