Servicing high-cost loans an increasing burden

Crippling debt is helping to keep as many as 10,000 Dunedin people trapped below the poverty line, according to new research by Presbyterian Support Otago.

Tuesday, November 11th 2003, 1:24AM

by The Landlord

The social service agency has found debt, much of it to the Government, is a major impediment to 75 per cent of its clients escaping poverty.

The agency's director of community mission, Dennis Povey, said many were trapped in a cycle where inadequate income pushed them further into debt every week.

Another disturbing trend was the increasing use of high-cost loans, which now made up 24 per cent of the debt burden carried by poor families.

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