UK debt woes will get worse, claims MP

Economic spokesperson for the Liberal Democrat Party Vince Cable asserted that high inflation figures revealed recently would lead to increased interest rates and “misery” for those Brits who are aiming to become debt free.

“This high inflation is likely to cause further interest rate rises which will cause misery for thousands of people in severe debt who have borrowed up to the hilt to secure a mortgage,” said Mr Cable.

“We have seen rapidly growing house repossessions and insolvencies, as inflation and interest rates rise. Debt servicing problems will only get worse,” he added.

It was announced earlier this week that the level of consumer price index (CPI) inflation had reached 3.1 per cent during March of this year.

The rise required the governor of the Bank of England to write a letter of explanation to the chancellor Gordon Brown and has increased fears among credit consumers facing debt management problems that the cost of borrowing will be increased in May.