Consumers could clear debts with disposable income

The average family was £12 a week better off in June, compared with the same time last year, as cuts in interest rates helped boost disposable incomes, according to new research from ASDA.

The ASDA monthly income tracker showed that the average household had disposable income of £164 a week last month, 7.8% higher than the same time in 2008.

Andy Bond, president and CEO of ASDA, said: "[…] Many families still face reduced household wealth and high debt levels, so although the increase in spending power is welcome, most people will probably end up saving it or using it to pay off debt."

A spokesperson for debt management company Gregory Pennington commented: "We would advise anyone with `extra` disposable income to think twice about the best way of using it.

"For example, some people may choose to overpay any outstanding debts they may have. At a time like now, when interest rates are particularly low, overpaying on debts such as their mortgage could be a good move financially."

---

Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.