Those struggling with debt management issues will find it increasingly hard to save money in the new year, it has been claimed.
According to Ed Bowsher, head of consumer finance at lovemoney.com, this is in large part because of the base rate and the likelihood that it will remain at 0.5 per cent for some time.
This, he observed, would suggest that savings rates will stay low and he added that it’s very possible that the base rate will not rise for the entire 12 months.
Mr Bowsher continued to say that long-term interest rates are going to climb, stating: “You will have to pay more money for a long-term loan – a five year loan or longer than that.”
His comments come in response to figures released by the Bank of England, that revealed that unsecured loans dropped by £713 million in October, the largest month-on-month fall since 1993, when records began.
By Sarah Adie