Plan now, save later, says expert

Equifax has said that following the Bank of England’s decision last week to raise interest rates by 0.25 per cent, consumers need to be better financially prepared for the year ahead.

The three rises in the official cost of borrowing since August, as well as growing council tax and energy bills, could leave consumers vulnerable to serious debt in 2007.

“It is crucial that consumers plan for the future and not just in the short-term,” commented Equifax’s Neil Munroe.

“Now is definitely the best time for individuals to sit down and plan their financial future, to ensure they are prepared for any unexpected financial pressures.”

According to Moneysupermarket, people struggling to clear their debts should consider switching them to products with lower interest rates to save money.

Debtors are also advised to seek free and impartial advice and to reduce spending on consumer goods.

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