Tuesday 18th of January 2011
Seemingly ever-increasing inflation could have a knock-on effect that proves enough for those already struggling with large debts to seek individual voluntary arrangement answers.
The Bank of England has announced a rise in inflation to 3.7 per cent and Moneysupermarket.com has warned the move signals more bad news for consumers.
People have already had to endure a VAT escalation, soaring petrol costs and low savings rates, the price comparison website noted, adding the inflation issue is unlikely to improve in the near future.
Kevin Mountford, head of banking at the portal, said the rising cost of living "has led to one in four consumers being forced to stop saving this year, with many more not bothering to make sure their savings are getting the best returns possible".
The news comes after HSBC's Savings Map of Britain recently showed many Brits found it hard to put any cash aside in 2010, with 40 per cent withdrawing more than they saved.
By Ashley Littley
