Rate rises ‘adding to personal debt’
The personal debt crisis in the UK means consumers have “never had it so bad” following recent interest rate rises, it has been claimed.
Research conducted by Alliance Trust shows rapidly increasing consumer spending, with real earnings growth at its lowest point for ten years.
On the 50th anniversary of Harold McMillan’s infamous “most of our people have never had it so good” speech, the trust urges consumers to tackle their personal debt.
Shona Dobbie, head of Alliance Trust Research Centre, said: “We’ve seldom had it so bad, with homes squeezed by lower earnings growth, higher mortgage repayments and chronic council taxes.”
“British families continue to borrow big and spend bigger which confirms this reality just isn’t hitting home,” she added.
Ms Dobbie predicted that spending should ease over the coming year as the effects of the recent increases in the base rate of interest become more pronounced.
Consumers facing higher loan repayments following the rate rises could benefit from expert advice to tackle their personal debt.
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