Low-income households and credit: Exclusion, preference, and inclusion

In this paper it is suggested that current debates on financial exclusion are often too narrowly drawn and institutionally focused. As a consequence, less recognition is given to the availability and use of other regulated financial services such as mail order and moneylending. Drawing on data from a number of recent studies, the authors explore the structures and processes involved in the provision and use of these additional credit sources and assess then-costs and benefits. It is suggested that alongside institutional exclusion are processes of self-exclusion, and also inclusion. The implications of such credit patterns for social and economic life in low-income communities are raised.