Wednesday 17th of November 2010
Brits who are already struggling to save money to pay off their debts may decide to seek individual voluntary arrangement answers following an increase in the consumer price index (CPI).
Spokesman for Moneynet.co.uk Andrew Hagger noted that people will find it harder to get a return on their money after the CPI rose to 3.2 per cent.
Individuals will have to look towards fixed-rate bonds that hold their money for three years or more to get access to a rate that offers them a return on their investment that is above the rate of inflation, he added.
"A lot of people are probably not happy to tie their money up for that length of time because if you put it in a bond you can't get access to it," Mr Hagger noted.
Last week, editor of InvestmentandBusinessNews.co.uk Michael Baxter claimed more households will be in a worse economic situation next year compared to their current position, partly as a result of wage increases not keeping up with the rate of inflation.
By Chris King
- 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
- Individuals 'failing to meet debt repayments'
