Household budgets 'could be improving'

Those who find their finances are stretched as a result of the rising cost of living may find they can make their earnings go slightly further.

Alliance Trust Savings' Financial Reality Index for the fourth quarter of 2011 indicated an increase in the household budget index.

Bill repayments could be easier to keep on top of or even pay ahead on as a result of this development, which could help struggling individuals repair bad credit.

An increase from 48.8 on the index for the previous quarter to 61.7 in the final three months of the year was registered.

This was attributed to slight growth in disposable income, although it was acknowledged muted wage improvements continue to be an issue for many Brits.

However, those who are able to remain credit active where possible could find they build credit, which might mean more financial products are available to them as a result.

Posted by Martin Peacock