Tuesday 1st of March 2011
The number of people in Britain in search of individual voluntary arrangement answers could be about to increase as the UK may be in danger of slipping back into recession.
David Coombs, manager of the Rathbone Multi Asset Portfolios, has warned a substantial increase in interest rates has the potential of leading the nation towards another economic downturn.
The industry figure noted anything above a 100 basis point rise (one per cent) could damage the economy - and therefore recommended no alterations to the base rate in 2011.
He suggested pressure on salaries may become a significant topic, observing: "Many have put up with wage freezes, as they have been better off with cheaper mortgages, but once this starts to change, wage inflation could be back on the agenda."
Recent research carried out by R3 found that 43 per cent of Britons expect their financial situation to grow worse in the next six months.
By Neil Burton
- 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
- Debt management a concern as Brits 'struggle to save'
