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Priority debt rising to dangerous levels

New data from CAP’s Client report, released in June, revealed that since 2007 there has been a reduction in the aggregate sum of secondary debt. Whilst this can be seen as a positive, the implications are alarming because the level of priority debt has more than tripled in the same time period.

In 2006 priority debt levels sat at 9% of average debt for a CAP client, yet by 2016 priority debt amounted to 32% of total indebtedness. The implication of rising priority debt is bleak, with more serious consequences for those who don’t pay, tighter budgets and lower standards of living.

Action needs to be taken in order to tackle some of the issues already arising due to the increase of priority debts. Yet, it’s not a problem for just one body or sector, it is a problem for all of us. We must work together to achieve the right outcomes, which benefit the most in need in society.

If you want to work with CAP, get in touch by emailing externalaffairs@capuk.org

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