Brits' finances 'improving steadily'

The financial wellbeing of Brits has steadily improved over the last year, according to figures from Alliance Trust.

Its Financial Reality Index - which is a measure of consumer wellbeing - shows that improvements in the stock market and falling inflation have improved the financial wellbeing of Brits for the third quarter of this year.

But despite the improvement, consumers are still finding it difficult to get credit due to problems with job losses and the weak economy.

Shona Dobbie, head of the Alliance Trust Research Centre, said that the improvement is "encouraging".

"Falling inflation and lower interest rates have helped ease pressure on their budgets, while strengthening stock markets have boosted their wealth, but this is still clouded by the uncertain economic outlook and rising unemployment," she added.

The latest statistics from the Bank of England reveal that credit card lending increased last month by £0.1 billion.