Rate rises ‘prompt financial inaction’

But, as debt management problems worsen for millions UK consumers, MoneyExpert has suggested that financial inaction could leave Britons missing out on potential savings.

Indeed, a full 5.4 million fewer UK consumers have switched their financial service providers in search of better deals during the second quarter of this year compared to the first, figures from the price comparison service demonstrate.

“The reality is that consumers are battening down the hatches in preparation for a rough ride as the mortgage becomes more expensive and disposable income reduces,” commented Sean Gardner, MoneyExpert’s chief executive.

“It seems we’re all taking stock of our finances – and perhaps switching is an unwelcome distraction in the current climate.”

More than 30,000 Britons entered into Individual Voluntary Arrangements during the first quarter of 2007 in search of a debt solution, according to data from the Insolvency Service.