The need for responsible, fair and transparent short-term credit could be at its greatest ever, as household debt looks set to increase to £15,000 by 2020.

Such an increase would mean that access to responsible credit from FCA regulated companies would be essential for many hard-working individuals and families that are just about managing from month to month.

The research, conducted by the TUC, is based on the most recent data from the Office for National Statistics and the Office for Budget Responsibility. It states unsecured debt per household is set to reach a record high of £13,900 this year, rising from £13,200 last year and reports wages in the UK are still worth around £20 per week less than before the financial crisis.

This recent publication further contributes to previous reports documenting the six million ‘just about managing’ UK households, a phrase now widely used across parliament, think tanks and the press to describe those working households who are just getting by to pay their bills but are left with no disposable income.

Greg Stevens, CCTA Chief Executive says: “The volume of individuals who consider themselves to be ‘just about managing’ each month is on the rise and as a result, short-term credit providers are filling the void.”

In a survey by comparison site, Money.co.uk in January 2017 of 1,000 households with children, 60% of respondents classed themselves as ‘just managing, with 44% stating they regularly ran out of money mid-way through the month. Mr Stevens continues: “These figures demonstrate that the availability of responsible credit from FCA approved firms has never been of greater importance. Access to fair and reasonable financial products from regulated lenders who undertake robust affordability checks on borrowers, and operate fair, transparent charges will help support those consumers who are struggling to manage their cash flow or need help to cover emergency, unexpected costs.”

In recent months the Bank of England, MPs and charities have also warned of high consumer debt levels, pointing to increases in bank lending, car leasing companies, credit card firms and shops offering interest free-credit.