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This Library Note was prepared for a debate in the House of Lords on the impact of personal indebtedness in UK households, especially on children, which was scheduled to take place on 17 July 2014, but was postponed to a future date. The Note gives an overview of current levels of personal indebtedness in the UK and examines reports relating to its impact on households. The Note then considers the specific impact household indebtedness has on children, before examining some of the suggested causes of problem debt in UK households. The Note also provides an overview of government policy on the issue and the action it has taken to date.

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