Friday 18th of February 2011
The knock-on effect of any rises to interest rates could see those already deep in debt difficulty asking individual voluntary questions in order to help get them out of the mire.
And according to Peter Hensman, a global strategist at Newton, such increases are likely to take place over the course of the next year, BNY Mellon Asset Management noted.
The industry figure observed Bank of England survey data is showing figures that suggest interest rate rises may be on the cards.
He said: "Against this backdrop, interest rate rises seem inevitable, and we would expect a number of rate increases this year."
Markets have already begun factoring in this likelihood, Mr Hensman explained, adding rates are predicted to escalate 1.5 per cent this year and 2.5 per cent in 2012.
It means the monetary situation for many Brits could be particularly dire as Andrew Goodwin, senior economic adviser to the Ernst & Young ITEM Club, recently noted many consumers feel their wages continue to lag behind inflation.
By Rachel Powell
- Debt consolidation loans falling, figures show
- Britons 'changing attitudes' towards debt management
- Homeowners 'more concerned with debt management'
- Low interest rate 'contributing to debt management efforts'
- Debt management growing in importance, survey finds
- Help for those with debt management worries welcomed
