An analysis published by the Trades Union Congress (TUC) has suggested that unsecured debt per UK household will reach a record high of £13,900 over the course of this year.
Unsecured household debt is set to exceed £15,000 before the end of the next Parliament, the analysis also revealed.
The rise in household debt may be attributed to stunted wage growth, and reflects the UK’s ‘ongoing living standards crisis,’ said the TUC. It also found that wages in the UK are currently worth £20 per week less than before the financial crisis.
The business group is urging the next government to act urgently to deliver higher wages for UK workers.
Frances O’Grady, General Secretary of the TUC, 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.’