The Debt Crisis: What Next?
Posted on 3 August 2009
A major research project by sociologists at the University of York will examine the nature and consequences of an economic system that prospered as a result of easily available credit.
The research team will conduct confidential interviews with people struggling with debts of all types, to establish both the reasons for their financial situation and possible routes out of indebtedness.
We are interested in the effect indebtedness has on the lives of individuals
Mark Horsley
One of the research team, Mark Horsley, said: “Cheap and easily available credit prompted a sustained growth in house prices and encouraged the rapid expansion of other consumer markets. Many consumers marginalised anxieties about affordability in the belief that house prices would continue to rise, and carried on spending in the belief that their income would always be greater than their outgoings.
“There is evidence to suggest that some people at the margins of society have used easily available credit as a form of substitute welfare to maintain basic living standards for themselves and their families. We are interested in the effect indebtedness has on the lives of individuals, the strategies employed by various debt collection agencies and in government policy on debt issues.”
The specific content of the interviews will depend on individual situations but are likely to consider the availability of credit, the funding of consumer lifestyles, the psychological impact of debt and experiences with debt collectors and debt advice services.
“We see this research shedding light on the hidden side of credit availability. It will provide detailed case studies that CAB and other organisations may use to highlight the plight of their clients. It will also provide us with raw data to influence policy both on the road out of recession and the effective management of debt in our economy,” Mr Horsley added.
Anyone wishing to take part in the survey can contact Mark Horsley at 01904 432634 (answering machine).
ENDS
Notes to editors:
- More information on the University of York’s Department of Sociology at http://www.york.ac.uk/depts/soci/