“What the TUC describes is consistent to what we are seeing. We are also seeing levels of unsecured debt rising for the first time since 2008 and the prospects are worrying. Based on April 2017 data, we estimate 8.8 million people turned to credit to pay for everyday household expenses over the past year. More than half of these were in employment, 41% in full-time work. Stagnant wages and rising inflation are making more people vulnerable to problem debt.
“We welcome Labour and Conservative manifesto commitments to introduce a ‘Breathing Space’ scheme to help people manage serious debt problems. In addition to better protections for people in debt, the next government should commit to action to help the 2.9m people already struggling with severe problems and help over 9m who are showing signs of financial distress. It should also work to ensure better alternatives to dangerous forms of high-cost credit. And it should act to help families build up savings to insulate them from problem debt."