A DAMNING report launched at the TUC’s conference earlier this month found that families are having to borrow more than £325 a month just to make ends meet, reports The Herald of 11/9/12. The combination of soaring living costs, pay freezes and pressure on families’ standards of living were leading many to get into debt, warned unions.
More than 22,000 members of trade unions were surveyed and the results showed that the average amount borrowed each month had risen over a six month period from £127.88 to £327.88.
Of special concern is the finding that more than four million people regularly had to use payday lenders. This sector of the financial industry has come in for criticism for the high rates of interest that some companies charge customers and Stella Creasy MP, a campaigner against such lenders, has claimed that one in three payday loans were taken out to pay off a previous loan.
Len McCluskey of the Unite union is quoted in the article as saying “Even more people are being plunged into punishing levels of debt as they struggle to make ends meet. This is the harsh reality for increasing numbers of working people in Osborne and Cameron’s heartless Britain”.