Unsecured Debt Levels ‘Have Never Been Higher’
January 8, 2019
The average scale of unsecured debt held by households across the UK is now higher than ever before, according to analysis by the Trades Union Congress (TUC).
According to the organisation’s assessment of official data, the average British household had £15,385 in debt in the final three months of 2018.
The figures incorporate information on student loans, bank loans and purchase loans, as well as debt accumulated via credit cards, store cards and payday loans but not mortgages.
On a collective basis, households nationwide are understood to have unsecured debts worth a total of £428 billion.
The average unsecured debt per household is believed to have increased by £886 over the course of last year.
Worryingly, unsecured debt is reckoned to account for an increasingly large share of the money that families, couples and individuals are bringing home on a monthly basis, with debts now accounting for around a 30 per cent share of average household incomes.
According to the TUC, stagnant wage growth and government policies regarding public sector pay have left a great many people relying on credit to survive.
The organisation would like to see the National Minimum Wage increased to £10 per hour throughout the country as a means of taking some of the financial pressures off people who are in work but struggling to get by.
“Household debt is at crisis level. Years of austerity and wage stagnation has pushed millions of families deep into the red,” commented Frances O’Grady, the TUC’s general secretary.
“The government is skating on thin ice by relying on household debt to drive growth. A strong economy needs people spending wages, not credit cards and loans.”
It has been suggested in recent weeks that Scotland may be heading for a personal debt crisis in 2019 and a significant increase in the number of people entering into official forms of insolvency.
According to the accountancy firm French Duncan, there were around 12,000 Scots who became insolvent over the course of 2018, which was the highest number recorded in any year since 2013.
If you live anywhere in Scotland and you are worried about how best to deal with your debt problems then Scotland Debt Solutions can help. Call today to arrange a FREE and confidential consultation.