Average household debt higher now than during financial crisis, study suggests
According to a study carried out by the Trades Union Congress (TUC), UK average household debt is now higher than during the 2008 financial crisis.
Average household debt is currently 31% above its peak before the financial crisis, the TUC said.
The study revealed that unsecured household debt rose to £14,540 during the third quarter of 2019, representing a rise of £430 when compared to the same period in 2018. Total unsecured debt increased to £407 billion in the third quarter of 2019.
The TUC believes the key reasons for weaknesses in wages are a low minimum wage, job insecurity, slow wage growth and a decade of austerity.
'The reason we're seeing this is bad management of the economy,' said Frances O'Grady, General Secretary of the TUC.
'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.'