Consumers urged to reshuffle finances

Paying off as many debts as possible would be a good starting point for a financial restructuring and cutting out unnecessary expenditures could limit the impact of an increase in the base rate of interest, suggests the price comparison service.

But for those people whose debt management problems are causing real difficulties it is important to seek out appropriate debt advice, the company concludes.

Stuart Glendinning, managing director at moneysupermarket.com, said: “A base rate rise is inevitable sooner rather than later, but people ought not to panic.

“Review your financial situation rationally as there are several logical steps that can be taken to alleviate financial distress.”

A report from MoneyExpert recently revealed that more than 1.23 million household bills are going unpaid each month in the UK.