According to the politicians, mortgages have not been as unaffordable as they are now for people in Wales in around 16 years and there are many credit consumers who find themselves in a “very precarious position”.
To highlight the extent of the Welsh financial woes the Liberal Democrats point to figures showing that bankruptcy has become twice as prevalent in the province since 2003.
Jenny Willott, Welsh Liberal Democrat MP for Cardiff Central, said: “These figures are extremely worrying. This further rise in interest rates is likely to push many more people in Wales into financial chaos.”
“If inflation continues to rise and interest rates continue to go up, the financial problems in Wales will only get worse,” she added.
The Bank of England’s decision to raise the base rate of interest to 5.5 per cent recently marked the fourth such increase since August of last year and will put added pressure on credit consumers facing debt management difficulties throughout the UK.