Budget management need set to grow?

A new report has said Britons have been seeing incomes fall by £360 a year in real terms since 2008.

Budget management may be needed by more consumers after a report indicated Britons are six per cent worse off than they would be had the financial crisis not happened.

The Institute for Fiscal Studies has produced a report stating that the average Briton's income fell by 1.6 per cent in real terms over each of the past three years, the equivalent of £360 a year.

And it said the normal pattern over three years would be for an annual increase of the same amount.

This means incomes are falling to 2005 levels, while at the current rate of change the level of incomes in 2013 will still be lower than they were in 2008.

Budget management may help those who are struggling to make ends meet as their incomes are squeezed.

For some, inflation may be the big problem now, but higher interest rates in the future may cause some who currently find making repayments easy to have considerable difficulties, according to a recent prediction by property economist at Capital Economics Ed Stansfield.

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