Inflation Rates Could Have Impact On Debts

Consumers have been warned that higher inflation rates could impact heavily on their finances. The Consumer Credit Counselling Service (CCCS) states that homeowners might need debt help as inflation will leave insufficient cash for them to meet their repayments. The CCCS states that interest rates may rise again in April, despite yesterday’s announcement by the Bank of England that they will remain unchanged this month. Michael Hurlston, chairman of the CCCS, commented: “Homeowners are being stretched. They are on the rack. As the burdens on household finances mount, our research shows that homeowners in particular should take care.” The decision to keep rates unchanged was widely expected among commentators and analysts, though most expect a further increase in the coming months. Debt problems have led to a 65 per cent increase in demand for services from the CCCS in the past year, according to the BBC.

9 March 2007 | Debt Help | Comments