Average household debt in the UK is now higher than during the 2008 financial crisis, according to a study by the Trades Union Congress (TUC).
The TUC have claimed that average household debt is currently 31% above its peak before the financial crisis.
The study revealed that unsecured household debt rose to £14,540 during the third quarter of 2019. The represents a rise of £430 when compared to the same period in 2018. The total unsecured debt increased to £407 billion in the third quarter of 2019.
According to the TUC low minimum wage, job insecurity, slow wage growth and a decade of austerity are the key reasons for weaknesses in wages.
Frances O’Grady, General Secretary of the TUC, claimed ‘The reason we’re seeing this is bad management of the economy.’
‘Wages are still worth less than a decade ago. Too many people have insecure jobs with uncertain hours.’
‘No more excuses – the government must put together an urgent plan to improve living standards and to help families struggling with dangerous levels of debt.’
“The value of wages and job security need to be improved so that people can live a stable life. It is impossible for low income families to live with large amounts of debt.”Quote from Nigel Holland