Household finances are stretched

When consumers’ finances are stretched, they are often in greater need of financial assistance. Some individuals require bad credit loans to help them pay for certain provisions, such as cars, weddings, education and so on. Thankfully, there are now guarantor loans available for people to take advantage of. This can make the process of accessing money easier.

New figures produced by supermarket chain Asda suggest that household spending power is falling. This could have an impact on demand for loans. In its Asda Income Tracker, the firm suggested that rising energy bills have left UK households with an average of just £160 a week to spend after essential bills have been paid. This is down by £12 from last December and is the lowest total since the tracker began five years ago.

It noted that rises in the price of gas averaging 20 per cent over the last year have been the most notable pressure on budgets.

Commenting on the figures, Charles Davis from the Centre for Economics and Business Research, which compiles the report, said: “Weak employment prospects will increasingly act as a drag on household finances. Private businesses are reluctant to hire and this, combined with public sector job cuts, is likely to result in continued weak wage growth.

“Unfortunately it is expected to be some time before consumers start to see significant gains to real incomes.”

Meanwhile Asda boss Andy Clarke added that the highest level of unemployment seen for 17 years is having a “real impact” on the way families feel. However, he also noted that the cost of some essentials is falling.

In order to help them pay for certain provisions, consumers may increasingly make use of bad credit loans such as guarantor loans. These solutions can provide much needed finances to those who may otherwise struggle to access money.