Average household £7 a week richer but debt levels remain high
01/07/2009
During May, a typical household had £164 a week left for `discretionary spending` after essential expenses, The Telegraph reports.
The research, produced by cebr (centre for economics and business research) for Asda, suggests that essential spending, such as utility bills and mortgage payments, was £3 a week lower in May than a year earlier.
An economist at cebr, Charles Davis, commented: "Spending power has increased relative to a year earlier in both April and May. However, this is not necessarily translating into increased spending on the high street - as shown by the 0.6 per cent month-on-month fall in retail sales in May.
"This is due to increased levels of precautionary saving as consumer debt levels remain high, unemployment rises and households see an uncertain economic climate ahead."
A debt specialist for Debt Advisers Direct said: "We would advise anyone with `spare` disposable income to think very carefully about the best way of using it - for example, they may choose to overpay any debts they may have. At a time like this when interest rates are low, tackling their mortgage debt could be a particularly appealing option."
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