Raising prices and stagnant pay has left millions of people in UK into the burden of debt.
More than 1.5 million families are in extreme debt, fuelled by the "collapse" in the value of pay, says a new report.
The TUC and Unison report, Britain In the Red, said 3.2 million households are in "problem debt", paying out more than a quarter of income on unsecured debt repayments, while 1.6 million are in "extreme problem debt", shelling out 40% on repayments.
The problem is getting worse following a collapse in wages, which fell by over 10% between 2007 and 2015, the report warned.
“Every week we see thousands of households struggling to keep up with their essential bills and credit repayments,” said Peter Tutton from StepChange Debt Charity .
“Sluggish wage growth and the rise in insecure jobs have left households even more financially vulnerable. When budgets are stretched to the limit, even a small income shock can push people into serious financial difficulty.”
Total unsecured debt, excluding mortgages, for UK households increased by £48billion in the three years to 2015 to £353billion, according to the TUC and Unison.
TUC general secretary Frances O'Grady said: "Families can't continue relying on credit cards and loans to get by, but with the average wage still worth £40 less than before the 2008 crash, lots of families have little choice.”
Unison general secretary Dave Prentis said: "Many of those affected by debt will be public service workers who have suffered eight years of zero pay rises, followed by a Government imposed cap on earnings.
"This report rightly draws a link between increased debt and stagnant wage growth at a time when rent and transport costs continue to rise. Many families are having to make choices between paying the rent and feeding their kids."
Where to seek help?
If you are struggling to make ends meet get free help immediately from your local Citizens Advice Bureau , call the National Debtline on 0808 808 4000 or Stepchange Debt Charity on 0800 138 1111.
The bad news is, there are a lot of unscrupulous 'helpers' out there who will be no help at all. These are some of the dodgy dealings debt firms have got up to .
PayPlan and debt charity StepChange offer free debt advice. But if you find out the plan isn't working, you can still look elsewhere.
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