Study says Families will pay off Christmas debts until June
The Trade Union Congress ( TUC) has asserted that the average income families will take until next June to clear their Christmas debts, with the average adult borrowing £685 over the festive period.
This equation last Christmas was that one in six families borrowed money to pay for drinks, food and presents, with households borrowing at an average of £654 per adult.
This year it is thought that the falling real wages and lower household savings will make it more difficult 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.
The TUC analysis found, if a minimum wage worker borrows this amount, it would take them an entire year working full-time to pay it off.
The research published by Consumer Intelligence in October also showed that nearly half of all families who borrowed during last year's festive season still haven't finished repaying last year's debt.
Frances O'Grady, TUC General Secretary 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."
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