The disposable incomes of UK consumers have declined significantly over recent years, new figures reveal.
The figures from Abbey Credit Cards suggest that the average disposable income has decreased by 29 per cent compared with two years ago, potentially putting a strain on people`s finances.
Meanwhile, as many as one in ten consumers are spending 90 per cent of their salaries on essentials such as rent and bills.
"With the cost of living increasing so drastically in the past two years, in particular the cost of essentials such as food and bills, it`s important to make sure that you budget effectively and economise wherever you can," advised head of Abbey Credit Cards Callum Gibson.
Consumers with limited disposable incomes may find themselves particularly under pressure over the Christmas period.
Recently, David Kuo, head of personal finance at Fool.co.uk, said that people need to budget if they are to avoid beginning the New Year with a significant amount of debt.
