Borrowing remains cheap for consumers that are looking to add to their cash flow.  It also remains cheap for home buyers and for homeowners looking for a cheap remortgage deal.  However, despite the low interest rates that can be had by borrowers, inflation remains a problem and households are still struggling.

According to a recent study by Asda Income Tracker, a UK family was worse off on the average by £11 in July 2011.  With spending power dropping it heightens the problems households are experiencing trying to make the family budget stretch and expand.  In comparison to last year, disposable income for UK families is down 6.4 per cent from July 2010.  The consumer price index for July, which is used to gauge inflation, was at 4.4 per cent.  That is still double the goal level set by the Bank of England. 

Experts are suggesting that households look for ways to save money.  With interest rates at record lows, for a homeowner a remortgage could save them in interest payments.  By securing a fixed rate remortgage with low interest a family could save money on interest payments and pad in some security against rising interest rates of the future.

Andy Clarke, Asda’s President and CEO, said, “The Income Tracker spells out how tough family finances are right now. The math is simple – the rising cost of feeding the family, getting around and increasing unemployment add up to the biggest squeeze on families since before the last recession.

“We’re in a unique position to help kick-start the economy. At Asda we’re tightening our belts, holding down the price of food and fuel and offering a future to the thousands of young people that shouldn’t be forced to choose between their desire to learn and need to earn.”