Disposable incomde vanishes under cloud of debt

The amount of disposable income the average UK consumer has to spend has dropped by 30% over the last two years according to research from Abbey.

Two years ago the average disposable income was £541.44 a month, a figure which has now shrunk to £382.21.

Increased debt from household bills and rent or mortgage payments are said to be the main reason, leaving people with no choice but to save hard for luxury purchases.