Thursday 2nd of April 2009
Consumers increasingly expect interest rates to rise over the coming year, a poll has revealed.
Lloyds TSB found that 45 per cent of people expect to be charged more for what they owe in 12 months’ time, up from 27 per cent a month ago.
Those who are struggling to maintain repayment of their debts may want to consider seeking IVA advice, as interest charges are frozen when a debtor enters into an IVA.
Chief economist at Lloyds TSB corporate markets Trevor Williams noted that Britons also expect to face rising prices in the coming months, with more than half of the 2,000 respondents expressing this view.
"For many the cost of living, such as food and rail fares, remains stubbornly high; particularly as pay rises are minimal this year," he said, factors that could lead a greater proportion of people to seek IVA help.
Last month, the Bank of England lowered its base rate of interest to 0.5 per cent.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Mortgages over 100% 'should be banned'
