Debt management plans unhindered by holding of interest rate
Debt management plans unhindered by holding of interest rate
- Friday, 8 January 2010People struggling with
debt management will be buoyed by the announcement that interest rates will not increase.
The Bank of England has revealed that it will hold the official bank rate at 0.5 per cent, for the tenth consecutive month.
International foreign exchange and payments organisation Travelex said the move was widely expected, and anticipated interest rates to stay at the low level of 0.5 per cent until the beginning of 2011 "at least".
Head of UK trading desk at Travelex Mark Bolsom said increasing mortgage repayments while unemployment remained high would be "disastrous" for UK consumers.
"Until the Bank of England sees consistent evidence that banks are lending more regularly, interest rates will continue to be held at 0.5 per cent," he added.
New figures from Credit Action show that the average amount owed by every UK adult is £30,226, including mortgages. This equates to 133 per cent of average earnings.

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