If you would like to recieve our monthly newsletter then please feel free to subscribe by entering your details below
base rate increase and how it will affect you
With the bank of England base rate increase last week from 5.25% to 5.5% consumers disposable income is being stretched to the max. With many households already struggling with their debts many are having to look at their options.
The average consumer debt has increased by over 10% in the last 12 months, a trend which looks set to carry on growing. Only in recent years have we started to see the effects of easy borrowing and the consequences of owning multiple credit cards. The average debt within the UK is now just under £9,000 excluding a mortgage and the base rate increase looks set to tip many consumers over the edge.
On its own an increase of .25% will only add around £21 per month to a mortgage of £100,000 but with 4 increases since August the average household may be paying an extra £80 per month since the base rate began to rise. For already overstretched budgets this will mean many households may not be able to afford the extra. The statistics show that County Court Judgments (CCJs) have soared since the base rate began to rise, in August last year there was a reported 750,000 CCJs registered for the previous 12 months, that figure today has already increased to 900,000 highlighting the number of consumers that cannot afford to make the repayments they currently have for their debts.
There are currently so many different options available to consumers such as mortgages, remortgages, secured and personal lending, IVAs and debt management which promote "cheaper monthly payments" and "writing off debts" to name a few and over the coming weeks we will be looking into all of these to help you understand how and if these products and services can help you