Wednesday 23rd of September 2009
The average UK household now has an extra £8 a week in their coffers, a new report reveals, although this could make little headway into the high levels of debt some Britons struggle with.
According to the Centre of Economic and Business Research (Cebr) survey commissioned by Asda, a three-year low for food price inflation and reduced mortgage repayments because of the 0.5 per cent base rate means there is less pressure on household finances.
But individual voluntary arrangements (IVAs) could still be required by people, as the poll notes that fuel prices have soared, earnings remain low and unemployment has reached sky-high levels.
"Meanwhile, households have a significant debt mountain to clear, which they are continuing to address. For the first time since Bank of England records began net repayment of debt has surpassed lending in July," explains Charles Davis, an economist at Cebr.
One way people could be repaying their debt is through an IVA, which allows individuals to only pay back what they can afford, which could be useful since average families are only £8 a week better off.
By Hayley Jones
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Information on IVAs could help women prepare for retirement
