British consumers are urged to look at their income and outgoings after it was revealed that the average disposable income has decreased for the first time since 1997.
A study released by uSwitch has found the average disposable income now stands at £14,520, a drop of £2,500 – or 15 per cent – in one year.
For those who have banked on a pay rise keeping in line with inflation, debt management problems may arise.
Ann Robinson, director of consumer policy at the company, said “an autumn of discontent” is on its way.
“Consumers are in a lose/lose situation where everything is shooting up except their income,” she said, going on to explain that the Bank of England and the government are trying to reduce pay increases to slow inflation.
In other news, Money Expert has warned millions of credit card “rate tarts” that zero per cent introductory rates agreed between April and October last year are about to expire.
By Morwenna Kearns