Decrease in incomes and savings could increase repossession fears

Wed, 31 Aug 2011

Brits may be more worried about the prospect of repossession after Aviva released new data showing that incomes and savings have fallen, while debt continues to rise.

According to the figures, total household monthly income has fallen by two per cent from an average of £2,062 in May to £2,018 in August.

As a result of their economic woes, 95 per cent of families feel they are not financially protected.

Meanwhile, food prices have increased by 6.4 per cent over the past 12 months, while costs associated with heating and lighting a home are up 7.45 per cent during the same period.

The Aviva Family Finances Report also showed that the typical UK family has just £982 in savings - 16 per cent less than the £1,163 recorded three months ago.

Aviva head of protection Louise Colley said: "Faced with rising costs and largely static salaries, UK families are more worried than ever about their finances.

"While people are improving their attitudes to finances, many families - especially single income families - are very vulnerable to a loss of income."

Meanwhile, Aviva also noted that parents are increasingly giving up work after realising that childcare costs are actually higher than their earnings.

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