insight
Evidence type: Insight i
Qualitative research is more exploratory, and uses a range of methods like interviews, focus groups and observation to gain a deeper understanding about specific issues - such as people’s experiences, behaviours and attitudes.
Quantitative research uses statistical or numerical analysis of survey data to answer questions about how much, how many, how often or to what extent particular characteristics are seen in a population. It is often used to look at changes over time and can identify relationships between characteristics like people’s attitudes and behaviours.
As of April 2019, UK households owed £217 billion, representing the highest levels of household debt on record and more than immediately before the financial crisis in 2008. High levels of debt are disproportionately common within poorer households. Among those households who spend more than one-quarter of their income on debt repayments (considered the threshold for ‘overindebtedness’), almost half earn less than £15,000 per year. Around one-third of all consumer debt is due to credit card use, with credit card debt growing by 25 per cent over the past five years. People on lower incomes are borrowing more on their cards in proportion to their income, and for longer periods of time.
This 2019 briefing paper from the Centre for Responsible Credit (along with Jubilee Debt Campaign, New Economics Foundation and Research for Action), presents new analysis of the impact of credit card debt on low-income households. The report uses data from the Bank of England’s 2018 Household Survey, which is conducted by NMG Consulting. The data was collected in 2008, and is based on responses from around 6,000 people. The report uses the findings to produce a set of recommendations for Government and stakeholders in order to address the problem of high-cost and persistent credit card debt.
This report was made possible by the assistance of the Barrow Cadbury Trust, an independent, charitable foundation committed to social equality.
To address the above problems, the report sets out the following recommendations:
Methodological strengths and limitations:
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Centre for Responsible Credit, with Jubilee Debt Campaign, New Economics Foundation and Research for Action