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19
JUN
2014

Low pay leaves many Brits struggling with debt

Just when we thought that the UK was going to be enjoying something of a mini financial recovery, more bad news appears on the horizon. The Office for National Statistics (ONS) has uncovered details of how a large percentage of the UK workforce is still finding it hard to make their salaries last the entire month.

Citizens Advice Bureau

CAB looked closely at the wage facts and figures collated by ONS since October 2010 and the findings where somewhat disturbing. These statistics show that the average wage increase is lower than the consumer price index growth average. Essentially, this indicates that the UK workforce is considerably worse off than they were in 2012. This is even more of a surprise when you consider that the UK’s economy is supposed to be experiencing an upturn. Fundamental costs such as rent, mortgages, food and energy prices are proving a struggle to meet and this can only be bad news for our population as a whole. In fact, the CAB’s figures show a 2% difference between the inflation levels and salary increases since the beginning of 2013.

Down £25 per week

Although 2% may not seem like a big deal, when this amount is compounded over the last 4 years, this adds up to around a £25 per week deficit in comparison with 2010. The CAB is seeing a rise in individuals who are struggling to deal with this disparity and the fact that the employment market is not exactly healthy really worries the organisation. There is also a rise in self-employed workers and this points towards a new trend of low-paid workers across the UK. Although the entrepreneurism could be a sign of motivation and initiative across the UK workforce, the levels of risk are seriously rising as a result. Another factor that deserves serious consideration is that UK banks have started to take a harder line against customers who are unable to meet their credit agreements. This lack of cooperation coupled with the trends we have just discussed will surely lead to another massive credit collapse in the not too distant future. When you consider that the original loans and credit agreements may have been agreed when the economy looked to be improving, it seems ironic that the banks have taken this rather inflexible stance.

If you are affected by this recent trend and feel that your banks and creditors are not on your side, come and speak with us at Dissolve Debt. Not only can we help to work out a debt repayment plan that works in your favour, we’ll also help you to negotiate with your banks, credit card lenders and anyone else you currently owe money to. We have been helping individuals just like you since 2004 and we are a family run business who understand how important it is to be debt free. So please call our team of helpful advisors now and take those vital first steps to a debt free future!

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