Families face £1,400 ‘debt timebomb’ in 2024 with rise on bank cards and loans
Families face a “debt timebomb” in 2024 with family borrowing set to extend by £1,400 on common, in line with new figures.
The evaluation by the Trades Union Congress (TUC) reveals a pointy rise in unsecured debt, which incorporates private loans, bank cards, and overdrafts. Next 12 months unsecured debt per family is ready to rise from £13,361 to £14,792 in actual phrases – a large 11% hike. By 2026 it’s forecast to extend to a report degree of £17,200, which might exceed the earlier excessive of £16,800 set in 2007.
The TUC warns that households have been left “brutally exposed” to rising prices whereas actual wages should not forecast to get well to their 2008 degree till 2028. The union additionally recommended the typical employee would now be £14,800 higher off if their pay had saved up with actual wage progress tendencies since 2008.
In his New Year message TUC General Secretary Paul Nowak will say: “Every 12 months the Tories keep in workplace the extra households shall be pushed into debt. This occasion of out-of-touch millionaires is extra targeted on clinging to energy than on rising our financial system and getting residing requirements rising once more.
“If something doesn’t change, real wages won’t recover to their 2008 levels until 2028. These 13 years of economic stagnation have left working people brutally exposed to the cost of living crisis. We cannot afford a Tory government one day longer.”
A Government spokeswoman said: “Inflation falling to its lowest level in two years offers some relief to families but prices are still rising too quickly, which is why we have put in place one of the largest cost of living support packages anywhere in Europe worth on average £3,700 per household. We are also committed to supporting low paid workers through our record increase in the National Living Wage, while cutting taxes so that people can keep more of what they earn, and investing £90 million to fund free debt advice in England for those who need it.”
It comes as Jeremy Hunt mulls a tax lower for rich households at subsequent 12 months’s Budget on March 6. In a desperate attempt to turn around the Tories’ dire prospects at the ballot box, the Chancellor is said to be considering scrapping inheritance tax – costing billions of pounds.
The 40% tax only applies to wealthy people who have an estate worth £325,000. This rises to £500,000 if a home is given to a child or a grandchild – meaning a couple have a combined tax-free property limit of £1million when they die. According to Government figures, just 3.7% of all deaths in 2020-21 resulted in an inheritance tax charge.
