'Shrinking wages' increase need for debt consolidation

Thursday 12th November 2009

The pay gap between the super-rich and those on low or middle incomes is increasing and played a part in causing the global financial crisis, according to research published by the Trades Union Congress (TUC) today.

In the report, the TUC says that the proportion of national income going towards wages has fallen significantly over the past 30 years.

As wages fell relative to prices, people have borrowed more to maintain their standard of living, with average household debt growing from 45 per cent in 1980 to 157 per cent in 2007.

The pay of people on average incomes has risen by 1.6 per cent a year since 1980 while productivity has been growing by 1.9 per cent annually. Those at the top have seen their earnings grow by as much as 56 per cent.

There are a number of different solutions available for people who have accumulated debt and whose wages are not sufficient to pay the money back.

Those in this situation should talk to a debt management company about debt consolidation loans and debt management plans.

The author of the TUC report, Stewart Lansley said: "For the last 30 years Britain's low and middle earners have seen their pay and living conditions stall while the incomes of the affluent, the rich and super-rich have vastly outpaced them.

"We now have an increasingly unequal society with growing income, wealth and opportunity gaps. To build a sustainable economy, far less susceptible to asset bubbles and credit crunches, the trend of an ever shrinking wage pool needs to be reversed."

As well as falling real wages, people are currently feeling the pinch of increased costs, with the AA reporting last month that petrol prices have gone up significantly.

News article brought to you by Debt1 – The debt consolidation company

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