Family Finances Feeling the Squeeze

Family Finances Feeling the Squeeze

Family finances are feeling the squeeze according to a report by the Centre for Policy Studies shows the average family income fell by almost £1,000 between 2002 and 2007 as taxes, energy bills and housing costs soared and earning stagnated.  

Although Council tax for an average household rose only 37 per cent during the five years to 2007, compared with 40 per cent in the five years to 2002, the average mortgage interest payments more than doubled to £7,500 from £3,582.

The report also noted that the total average household debt has increased during the five year period to £55,554 in the third-quarter of 2007 from £34,019 leaving UK households very exposed to any significant increase in interest rates.  The report will be seen by critics of Gordon Brown that his economic policies are failing to improve the lot f the average UK worker.

Our view

The regulator, the Financial Services Authority and the Government, have a duty to protect the people from themselves.  They have failed to this with regard to regulating credit companies and any non- mortgage related loans.  This has meant that credit has been freely available and many people a massively in debt.

Useful links:

Request expert financial advice now

Purchase guidance on financial planning in the Money Shop 

Back to News Summary