Interest rates a “cause for thought”

Ginny Broad from Alliance & Leicester said that with the interest rate rising recently, it will affect individuals’ loan and debt levels.

“We see bigger council tax bills and bigger gas and electric bills and I think that it is just all giving people cause for thought,” Ms Broad said on BBC One’s Breakfast.

“So we have seen a lot of people paying down the debt on their credit card and not taking out more borrowing in the non-mortgage sense.”

Although the Bank of England voted to maintain the interest rates, commentators are expecting the rate to go up again in the near future, possibly as soon as November.

With this increasing the repayments people make each month on loans and mortgages linked to the rate, Ms Broad urged people to think about their financial situation.

This may prompt some to take on debt advice on how to better manage their finances before another interest rate hike hits.