Eleni Karagiannaki

Published 17 June 2025

Drawing on Wave 13 of the UK Household Longitudinal Survey (Understanding Society) and anonymised client records from StepChange, this research explores household over-indebtedness in London and maps its intersections with ethnicity and area deprivation, explores the key drivers behind the disparities, and highlights what this means for policy and practice. The findings reveal stark inequalities in over-indebtedness across London. Certain boroughs and ethnic minority groups, particularly in the most deprived areas, face disproportionately higher over-indebtedness risks. The analysis highlights how demographic and socioeconomic drivers (such as income instability, employment patterns, and life events), combined with a lack of financial buffers which themselves are rooted in poverty and disadvantage, contribute to these disparities.