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Household debt tops £425bn: TUC

UK-Sinking-Debt-GBP-Currency-Money-700x450.jpgAnalysis by the Trades Union Congress suggests that household debt has reached a new high of over £425bn.

The TUC’s research – which includes student loans and are therefore higher than similar estimates from the Bank of England – says that non-mortgage debt rose £886 to a fresh peak of £15,385 per household in 2018, equating to £428bn across the economy.

Bank overdrafts, personal loans, store cards, payday loans and outstanding credit card debts have all been compiled by the TUC to arrive at its figure, which leaves it with a total unsecured debt as a share of household income figure of 30 per cent.

Consumer credit growth has been slowing in recent years, according to the Bank of England’s most recent figures, but has still been expanding, and the TUC says as a share of household income unsecured debt is now the highest on record.

TUC general secretary Frances O’Grady says that “years of austerity and wage stagnation has pushed millions of families deep into the red” and that the government was “skating on thin ice by relying on household debt to drive growth”.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Including student debt makes this meaningless as an assessment of the current level of debt movement up or down. It seems they decided what they needed it to show then used the calculation which would show what was wanted.

  2. What looked like an illuminating article proved nothing more than propaganda attempting to score a political point! It was Gordon Brown who famously congratulated the consumer in the early noughties for saving the UK from the level of recession experienced elsewhere! Then look what happened! So this government is acutely aware of how vulnerable the economy is based on an over reliance on retail spending to prop it up.
    How much debt overhang there is from last Christmas is a concern. Perhaps it is time to rethink Christmas… I am being serious! All those ill thought out gifts languishing in the wardrobe…what a waste!
    Presents should be just for one’s immediate family!
    Take a leaf out of the Royals’
    book……set a low limit for Secret Santa. It used to be just £5!! Individuals, just like the government, should run a balanced budget!

  3. […] Household debt tops £425bn: TUC  Money Marketing […]

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