Director general of the BSA, Adrian Coles, said that despite being surprised by the timing of the increase in the base rate to 4.75 per cent, people should still be able to cope with debt.
Mr Coles said that “even with the rate rise we believe that most people will continue to be able to manage their debt commitments”.
His comments are in contrast to others, such as the TUC, which believes that workers were unprepared for the rise in monthly debt repayment, especially those with mortgages linked to the rate.
However, Mr Coles said that half of outstanding loans are at a fixed rate so people will not have to worry about the rate change.
Instead, he believes that the rate increase will benefit savers, yet for those without an account or already deep in debt, it may be time for them to take professional debt advice.