Low-income motorists `spending 17p per pound on cars`

A new study has highlighted the financial burden of owning a car amongst low-income households, many of whom may be struggling with debt due to the increasing costs of living over the past year or more.

The `Low Income Motoring in Great Britain` report, commissioned by the RAC Foundation, said that low-income households would be the most affected by any further increases in the cost of motoring, such as tax or petrol price increases.

These households `pay more as a proportion of their income on purchasing and maintaining a vehicle than any other section of society` - car-owning low-income households spend around 17p of every pound they earn on motoring.

The report added that the least well-off motorists already own the cheapest and oldest vehicles, on average, meaning that `trading down` in order to improve their finances and avoid debt would be very difficult.

A spokesperson for debt management company Gregory Pennington said: "The cost of motoring has increased rapidly in recent years, and because low-income households have to pay the same prices as anyone else for things like fuel and tax, the cost can be a significant burden.

"It`s important that anyone pushed into debt does not hesitate to speak with a professional debt adviser to discuss their options."

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