A recent report has highlighted how stagnating wages in the UK are making debt problems for consumers even worse, with many people struggling to make debt repayments due to their income levels compared to soaring inflation and living costs. There are many people who have seen their wages frozen or even dropped over the past couple of years, putting intense pressure on them with regards to their finances.
As most people are aware, the cost of everything from petrol and food to energy usage has soared over the past year or two. However, at the same time the wages that people are earning have increased only marginally or not at all, leaving consumers facing the difficult task of making their income stretch much further than it did in the past. For those that have debt this has made it difficult to make anything more than the minimum repayment on their debt. In addition to this many people may have been forced to get even deeper into debt by borrowing money to make ends meet.
There are now concerns that this difficult situation could result in the already worrying personal debt problem in the UK becoming even worse, and household debt is expected to soar to £2 trillion by 2015, which many believe could be a real threat to the nation’s economic future. Some believe that economic growth will be severely hindered as a result of this situation and more and more people may end up having to turn to solutions such as insolvency to try and solve their debt problems.
Tags: Responsibility, result, albatross, living costs, everything, cost, reportOne union official said: “As wages have stagnated, debt has soared. As incomes are squeezed further, the Office for Budget Responsibility expects household debt in this country to reach over £2 trillion by 2015 – an albatross around the neck of our economic future.”