Consumers have been told that they should not expect an imminent return to the era of relatively cheap debt.
According to Darren Cook, a spokesperson for Moneyfacts.co.uk, it will be a matter of years and not weeks or months before lenders are again willing to offer inexpensive deals on personal loans or credit card debt.
Mr Cook went on to suggest that there are likely to be increases in the base rate of interest as 2008 unfolds as a result of the ongoing rises in inflation, which will come as more bad news for people already struggling to become debt free.
“I am sorry to say that we are nowhere near to heading back to the days of cheap credit and I don’t see us there for a number of years to come,” he remarked.
The Bank of England opted to maintain the base rate of interest at five per cent earlier this month after having introduced quarter-point reductions in February and April.