Britons Under Financial Pressure Than Five Years Ago

According to new report it was indicated that Britain's households are some 15 per cent worse off than in 2003, soaring bills and rising bills are the reasons behind such critical situation. In such scenario taking out debt management plan may prove to be helpful, as it assists the consumers how to make proper balance between income and expenditure. This also saves them from putting themselves under stressful pressure of debts.

As per the data published as part of the Ernst & Young Annual Discretionary Income Study discovered that on average, a household has just 20 per cent of its gross income remaining after all outgoings have been accounted for.

It has been revealed that 5 years ago the figure placed at 28 per cent. This shows that, while the average British household had a net income after outgoings of £909.84 in 2003-04, whereas now it is just £772.79.

Monthly household bills have increased by 45 per cent in the past five years. They now account for 53 per cent of the average British household’s income, which is a rise of 17 per cent.

The monthly cost of petrol has increased by some 29.4 per cent to £193.61, while gas and electricity bills are £95.80 a massive 110 per cent higher than in 2003-04.

Ernst & Young director of retail Jason Gordon stated that "Many UK consumer segments are clearly feeling the pressure as big rises in household expenses are far outstripping relatively modest wage inflation.

“All consumers are painfully aware of the huge increases in petrol and utility bills but we have also seen some fairly hefty price increases in pension contributions and debt repayments.” However, this severe situation can be solved by seeking debt management plan. This kind of plan helps the consumers to cope with rising inflation and pay off debts on time.

According to the report, the average monthly payments on a standard 25-year mortgage now stand at around £735, which shows a 78 per cent increase since 2003-04.

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