March interest rate rise ‘could be catastrophic’

General manger at the Chiltern Debt Management Jackie Newton company suggests that if the Bank of England’s’ monetary policy committee (MPC) decides to raise interest rates to 5.5 per cent on Thursday (March 8th), the UK will head further towards an “untenable” debt management situation.

With in excess of six million Brits resorting to a debt consolidation loan during the last three years, a fourth increase in interest rates since August last year would have a “big impact” nationwide, Ms Newton explained.

“With so many people over-stretching themselves to fund lifestyles beyond their financial means, further interest rate rises could well have a catastrophic effect on hundreds of thousands of credit-reliant Brits,” Ms Newton commented.

Last month, two of the nine members of the MPC who are collectively responsible for setting interest rates in the UK felt a raise to 5.5 per cent was necessary in the interest of limiting inflation, the remaining seven disagreed.