As well as putting pressure on borrower’s debt management plans, increasing the base rate of interest could be ‘catastrophic’ for the UK’s economy. That’s the view of one expert following a report suggesting the rate could go up to 3.5 percent by the end of 2011. Michael Baxter, Editor of Investment and Business News says the economy is still too fragile for such a hike, which could also see debt repayments soar. If you are struggling to with your debt management, there are several good alternatives. An Individual Voluntary Arrangement (IVA) is available to people owing more than £15000 in unsecured debts. Debt Relief Orders can help those owing smaller amounts. He says “Apparently we had a crisis earlier this month, which could have been as serious as the Lehman Brothers going bust. This goes to prove the economy globally is still very vulnerable.”
Rates hike bad for economy and debt
June 3, 2010 By
