According to a new report from the Institute for Fiscal Studies (IFS), UK families are to be £1,800 a year worse off by 2015.
After adjusting for inflation, families with two children in the UK are set to lose £34 from their weekly incomes. The average childless couple is predicted to loose £24 a week.
The predicted cuts to family’s spending power are because incomes are failing to keep up with the rate of inflation.
The study also highlighted how better off families suffered disproportionately in the years following the recession.
Families earning more then £48,000 saw their income drop by 6.3% after the recession while families earning less than £12,000 saw their spending power fall by 4.5%.
With such a dramatic decrease in spending power, families need to ensure they budget for the inevitable. Without budgeting families are prone to get in debt if they rely on credit to get by.
If you’re struggling with your financial commitments, you should speak to a financial solutions provider who can assess your situation and advise on the best solution for you.
The Debt Advisor can offer advise on all kinds of debt solutions such as Debt Management Plans (DMP), Individual Voluntary Arrangements (IVA) and bankruptcy.
The Debt Advisor is a member of The Debt Resolution Forum and also regulated by the Financial Conduct Authority no 606669.
Call today on 0800 085 1825 to speak with an advisor. If calling from a mobile you can reach us on 0161 868 2500.