Avoid interest rate 'roulette'
03/04/2007Consumers are being urged to take measures to ensure they are able to cope with any further rises in the Bank of England base rate.
New research from Legal & General shows that in the last 30 years the bank's interest rate has increased 58 times, on each occasion putting homeowners and borrowers under pressure.
The rising cost of borrowing makes expensive forms of loans.co.uk/debt-calculator.aspx">debt, such as credit cards, an even less attractive personal finance option.
"Borrowers will be waiting to see if they are going to be in the red or the black in the base rate roulette next week," said Stephen Smith from Legal & General.
"Rates are still at a relatively low level compared to 70s and 80s, and many people would struggle with today’s debts at yesterday's prices. Whilst the boom and bust has flattened out since the turn of the millennium, borrowers are still facing a probable hike in rates in the near future," he added.
Consumers who are feeling the strain from the three successive rate rises – and who are worried about the likely prospect of further rises – can use a secured loan or homeowner loan to help cut their monthly outgoings.
 © Adfero Ltd
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