The TUC has published new analysis of household debt today, which finds that unsecured debt per household will reach a record high of £13,900 this year.
TUC General Secretary Frances O’Grady said: “The surge in household debt is putting the economy in the danger zone. We’ve got this problem because wages haven’t recovered. Credit cards and payday loans are helping to prop up household spending for now, but millions of families are running on empty. The next government must act urgently to deliver the higher wages Britain needs for sustainable growth. They must boost the minimum wage, and end pay restrictions for public servants like nurses, firefighters and midwives.”
Mike O’Connor, Chief Executive of StepChange Debt Charity, said: “What the TUC describes is consistent with what we are seeing. Based on April 2017 data, we estimate 8.8 million people turned to credit to pay for everyday household expenses over the past year. Stagnant wages and rising inflation are making more people vulnerable to problem debt.”