Families will still be paying off Christmas debts in June, study suggests
Average income households will take up to six months to clear debts built up through Christmas spending on food and presents, the TUC has said.
Average income families will take until next June to clear their Christmas debts, with the the average adult borrowing £685 over the festive period, the Trade Union Congress has claimed.
Last Christmas, one in six families borrowed money to pay for food, drinks and presents, with households borrowing at an average of £654 per adult.
This year, falling real wages and lower household savings will make it harder for borrowers to repay their higher credit card borrowings and loans in 2014, the TUC said, with it estimated to take 24 weeks to clear the debt.
If a minimum wage worker were to borrow this sum it would take them an entire year working full-time to pay it off, the TUC analysis found.
Meanwhile, nearly half of all families who borrowed during last year’s festive season still haven’t finished repaying last year’s debt, research published by Consumer Intelligence in October showed.
TUC General Secretary Frances O’Grady said: “Britain’s real-wage squeeze is forcing more and more families to put Christmas on credit.
“Millions of households will be still be paying for this year’s presents, food and drink well into the summer and beyond.
“Instead of benefiting from Britain’s economic recovery ordinary people are finding it harder to pay off their debts.
“Unless the government does more to tackle the cost of living crisis this debt bubble will continue to grow. Britain needs a pay rise.”
International Women's Day 2014: The shocking statistics that show why it is still so important
Feminist quotes to inspire you on the International Women's Day
Oscar Pistorius trial first week: Never mind a media scrum – murder case becomes bizarre safari following the tracks of a wounded lion
International Women’s Day: 'When a man gives his opinion, he's a man. When a woman gives her opinion, she's a bitch' - feminist quotes from female icons to inspire you
Malaysia Airlines plane: Oil slick is first sign that missing flight crashed into sea killing up to 239 on board
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Ukraine crisis: Russia dismisses '3am ultimatum' as 'total nonsense'
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
White people become less racist just by moving to more diverse areas, study finds
Exclusive: Impact of immigrants on British workers ‘negligible’
- 1 To those who can’t see the point of International Women’s Day: you are the very reason it exists
- 2 International Women's Day 2014: The shocking statistics that show why it is still so important
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Orgasm machine to deliver climax at the push of a button
- 5 Liam Neeson turned down James Bond role because late wife Natasha Richardson said she wouldn't marry him if he took it
£12000 per annum: Inspiring Interns: A small but growing chain of boutique hot...
£12000 per annum: Inspiring Interns: The company works with Tier 1 FTSE 100 Ba...
£45 - 60k Per Annum: Charter Selection: Highly profitable leisure brand, marke...
£30000 - £50000 per annum + Highly Competitive Salary: Austen Lloyd: Residenti...