Tuesday, May 17, 2011
Category:
Finance News
According to moneysupermarket.com, the Bank of England’s recent announcement that inflation reached 4.5 percent in April has added extra pressure to the many UK households that have been struggling with the increasing cost of living.
The comparison site’s research has revealed that in the last six months, the weekly outgoings of the average adult have increased by £54. What’s more, 22 percent of respondents admitted that they would not be able to cope if their monthly expenditure was stretched any more, due to the cost of living now being too high for them.
In addition to the rising cost of living, inflation is also reportedly having a significant effect on savings. In fact, moneysupermarket.com has revealed that to beat inflation, basic rate tax payers now need an account that pays a minimum of 5.63 percent in order to benefit from their savings in real terms. Higher rate tax payers reportedly need an account that pays a minimum of 7.51 percent to benefit.
For 40 percent of respondents, the rising cost of petrol was found to have had the greatest impact on their spending and budgeting during the past year. However the rising cost of food and the rising cost of utility bills have caused the greatest strain for 23 percent and 19 percent respectively.
………………………………………………………………………………………………....
Homeowners who would like to free up some extra money each month could consider taking out a
secured loan to consolidate existing credit. One of many finance options available, a secured loan for consolidation could allow borrowers to tie up any existing, expensive debts – such as credit cards – that are currently putting a strain on their finances. However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
