Recent research has reported considerable levels of poverty among informal carers in the UK, indicating difficult financial circumstances of some caregivers. Negative social selectivity into the role of informal caregiver contributes to their relatively weak financial position. This selectivity reflects a stronger sense of filial obligation in lower social classes; lower opportunity costs for low-income people from reducing working hours to accommodate caregiving; or insufficient access to formal care for poorer care receivers. In addition, informal caregivers might experience increased financial problems during their caregiving career. If caregivers take up their role in the situation of an emergency, they might struggle to keep up their financial commitments. They might also experience financial difficulties when the demands of caregiving increase over time. As other people low incomes, caregivers are vulnerable to even rather small financial disruptions, including possible extra expenses associated with providing care.
This presentation focuses on caregivers’ credit usage and financial distress. It first examines whether becoming an (intensive) caregiver is associated with increased levels of credit usage or debt. Then it analyses whether assuming the role of (intensive) caregivers increases the likelihood of accruing debt, including problem debt. The study analyses longitudinal data from Understanding Society from 2009 to 2021, to which credit file data from one of the largest UK credit reference agencies have been matched. The latter give monthly information about credit products owned, their type, outstanding balances and scheduled repayment accounts. Results from hazard rate models and fixed-effects models will be presented.