Northern Ireland Family Budget Hit Hard By Rising Vehicle Costs

Disposable income in Northern Ireland households is in a downward spiral. As the cost of essential household goods and services increases, wages are holding steady. This has left the average household over £600 more in the hole than just one year ago.

New research reveals that in June, the average family had only £80 remaining each week after paying for income tax and essentials like utilities and food.

The disappointing figure is 14.8 percent lower than that of June 2010. Northern Ireland families are being hit hard. On average, they are half less well off than counterparts in other areas of the UK, reported the Asda Income Tracker (AIT).

Negative economic factors are the culprit, stated economist John Simpson.

Daily living costs are largely to blame and transportation costs have played the largest part in increasing the cost of living, reported the AIT. In the past year, these have increased by 16 percent. The AA provided statistics showing a 15.2 percent increase in petrol and 16 percent increase in diesel costs from June 2010 to June 2011.

Sainsbury’s Finance issued a report claiming that since April 2010, car ownership costs have increased by 21 percent.

The result of the jump in transportation costs is more than one million fewer drivers in the UK. Those who still own cars are spending about £1,720 annually to fuel the automobile. This is nearly a one-third increase from the average spending incurred last year.

Many drivers are either car sharing or incorporating public transportation into their lifestyle.

Translink has helped those converting to public transportation by freezing train and bus fares at their 2010 levels. Donald McFetridge, a retail expert, predicts that the negative overall picture will not soon go away. This makes it more important than ever for vehicle buyers to find a great deal on car finance.