Those with debt problems may be affected by increase in inflation
Those with debt problems may be affected by increase in inflation
- Wednesday, 17 November 2010Inflation rose to 3.2 per cent in October, which may have a negative impact on consumers, including those living with
debt problems.
The Consumer Price Index, which was released on November 16th, revealed this was an increase from 3.1 per cent in September.
This increase in inflation has been attributed to the rise in fuel, financial services and toy prices.
Therefore, those living with
debt problems may find they have less disposable income as the cost of living increases.
However, they can help combat this by shopping around for a better rate on their savings account.
Andrew Hagger, spokesman for moneynet.co.uk, said: "Someone who is a basic rate tax payer needs to find a savings account that pays a four per cent gross - by the time you take the tax off that that then becomes 3.2 per cent - so [by saving at four per cent] that means that the value of their savings is keeping pace with inflation."
Not many savings accounts currently offer these rates so an option could be a fixed rate bond of three years or more, he added.

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