Consumers are set to tighten their belts further as disposable income levels fall, research has revealed.A poll carried out by Virgin Money showed that a third of Britons expect a drop, as debts such as secured loans continue to place pressure on households.The Financial Outlook Index from the firm showed that 11 per cent are either 'unconfident' or 'very unconfident' about keeping up with loan repayments, with the figure rising to 19 per cent when the chances of reducing credit card bills are evaluated."With 29 per cent of workers expecting a drop in disposable income over the next three months and next year, it is clear there is a mood of caution throughout the country," said UK managing director of Virgin Money Rob Clifford.However, he added that many people believe they will be able to pay essential bills, as long as they cut back on luxury spending.Last week a study by Birmingham Midshires revealed that nine per cent of adults have had to dip into their savings to pay for unexpected credit card bills.
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