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Credit inclusion and the home credit market in post-communist member states of the European Union

Critical Social Policy: A Journal of Theory and Practice in Social Welfare

Published online on

Abstract

Credit inclusion has emerged as an important policy issue in post-communist member states of the European Union because of reductions in state welfare. Sub-prime lenders have emerged to fill the gap left by welfare cuts for low-income consumers who do not qualify for mainstream credit. Home collected credit has become established in post-communist member states but high interest and administrative costs make this an expensive option resulting in vulnerable people becoming involved in a cycle of indebtedness. Some of the important consequences for social policy are addressed.