Saturday 22nd of January 2011
Individual voluntary arrangement answers may be sought by many people who are already deep in the red if the inflation rate continues to rise.
This is because Jasmine Birtles, founder of Moneymagpie.com, has warned there would be repercussions should the level keep on increasing until it reached the four per cent mark.
The financial and business commentator said: "Thankfully, we should be grateful that it hasn't gone past the four per cent mark. If it did then that really would be a problem."
She explained that, as a result of such elevation, there would be a strong possibility interest rates would also have to be put up.
The current rate of around 3.7 per cent is around the mark to be expected at this time, Ms Birtles went on to point out.
In June last year, chancellor George Osborne announced VAT would escalate by 2.5 percentage points, with the change coming into effect on January 4th this year.
By Neil Burton
