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Family finances: are you beating the UK average?
A new report sets out exactly how much the average UK household earns, owes, spends and saves.
by Michelle McGagh on May 31, 2012 at 08:47
The money saved on non-essentials is being put to good use as 53% of people said they spend nothing on debt repayments, up from 42% last year.
‘With the amount of unsecured debt falling from £10.418 to £9,314, this suggests more families are seeking to pay down their debts, thus freeing up future income,’ said the report.
Some good news
The Aviva report shows it is not all doom and gloom for those in the UK, though, as the typical income is rising. The number of UK families who survive on an income of less than £1,250 per month has continued to fall from 30% last November to 28% in January and 25% last month.
The average monthly income has also increased to £2,150 from £2,062 last May.
The report said: ‘Families have experienced a net income increase higher than the UK average. This may be because not only are they likely to be older and therefore more financially secure than some individuals, but they are also more likely to be a dual income household.’
Although debt levels remain high, people are saving more. A total of 76% of people said they have some savings, compared to 72% a year ago.
The average family saves £45 a month, up from £32 last year.
The average amount held in savings and investments, excluding pensions and property, is £1,228, a 6% increase from £1,163 last year.
Richard Kelsall, head of savings at Aviva, said: ‘The latest report found that over the last 12 months a growing number of families are trying to save money on a regular basis and as a result, a greater number now have larger savings pots.
‘In addition more families say they now have pensions, savings accounts, and ISAs, which suggests they are reacting to the difficult financial situation and seeking to provide a buffer to protect themselves and their loved ones.’
The number of people living in homes they own has also risen to 69% from 63% last year and the number of people privately renting has dropped from 23% to 19% over the same period.
The average value of a home, according to the report, is £212,324.
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