Huge borrowing hike by Doncaster households as debt escalates

Huge borrowing hike by Doncaster households as debt escalates
Huge borrowing hike by Doncaster households as debt escalates

Borrowing by Doncaster households has increased by 15 percent in the past five years along with a hike in credit card and car financing debt new figures have revealed. 

The TUC has warned that household debts are at "crisis level", blaming austerity and slow wage growth for increasing the burden.

UK Finance figures show that the average Doncaster household borrowed around £1,255 in unsecured debt between April and June last year, the most recent period for which figures are available.

The figure, which does not include secured loans such as mortgages, means households borrowed roughly £167 more than during the same three months in 2013.

It means that the area collectively took on an additional £146 million in loans including credit card debt, car finance schemes and bank loans.

However, unsecured borrowing was down five percent compared to the same period in 2017.

Levels of borrowing in Doncaster were similar to across Yorkshire and The Humber in general between April and June 2018.

The figures also reveal in the difference in borrowing across Doncaster. In the DN10 postcode area, households borrowed an average of £1,781, treble the average £595 in DN1.

Across the UK, households borrowed an average of £1,378 in unsecured debts, with those in the South East and London generally taking on more than in other parts of the country.

The average amount borrowed in the last five years has increased by nearly 20 percent..

The TUC said its own analysis suggested that unsecured debt levels reached new highs in 2018, equivalent to £15,385 per household in the third quarter of the year.

Unsecured debt as a share of household income is now more than 30 percent, the highest it has ever been, and above the level it reached in 2008 ahead of the financial crisis, said the TUC.

TUC General Secretary Frances O'Grady said: "Household debt is at crisis level. Years of austerity and wage stagnation has pushed millions of families deep into the red.

"The Government is skating on thin ice by relying on household debt to drive growth. A strong economy needs people spending wages, not credit cards and loans.

"Our economy is not working for workers. They need stronger rights and bargaining powers."