There was a sharp decline in the financial situation across the average UK household in the first three months of this year, it has been claimed.
Many Brits may be finding it more difficult to pay off their personal loans or credit cards, with figures from Alliance Trust indicating that there was subdued earnings growth and real disposable income throughout the first quarter of this year.
The investment company's Financial Reality Index has been revised to reflect this decline in household finances, which remain generally weak.
Commenting on the findings, Alliance Trust Research Centre head Shona Dobbie suggested that the future remains uncertain for many households.
She explained: "Households have been helped during the last few months by some recovery in house prices and relatively strong equity market performance, but the overall financial situation facing households remains clouded by the uncertain economic and fiscal outlook and the possibility that unemployment could rise further."
She added that rising inflation has had an impact on real disposable income, while there has only been a slight improvement in the labour market.
Earlier this week, research by Aviva revealed that two-thirds of families are so concerned about the state of their finances that it would affect their decision to take sick leave.
The poll also revealed that eight in ten Brits (78 per cent) would consider returning to work before they felt 100 per cent better.
More than one in ten (11 per cent) also indicated that they would return to work early from absence because they are concerned about the possibility of losing their job.
However, Aviva UK Health senior proposition development manager Kevin Murdoch suggested that this could have longer-term impacts on many Brits' abilities to work.
He explained: "The disturbing findings in our survey highlight just how poorly equipped to survive a period of long term absence many of us are and how this can lead us to make decisions we might live to regret."
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