Abacus Daily Debt News

Family finances ’still tight’ despite inflation drop

Families may still require debt management help despite the announcement inflation has fallen, it has been suggested.

Ann Robinson, director of consumer policy at uSwitch.com, noted the news will offer no relief to households still struggling with their finances.

The industry figure claimed the situation is particularly worrying for those families that spend the majority of their income on food.

"Luxuries have been the first to go, but the current climate is forcing 24 per cent of people to also cut back on food," she warned.

Ms Robinson observed 16 million consumers are experiencing a pay freeze in 2010, making monetary woe even more prevalent.

Individuals should look to reduce their living costs and lower their household bills to counter the plight, she added.

A recent Nationwide Building Society study revealed many Britons are increasingly pessimistic about their ability to adequately save money for later life, with 21 per cent claiming they will be saving less in six months time than they are at the moment.

Posted by James Francis