News Column

Slow and Steady Approach to Interest Rates Necessary Says Citizens Advice

August 7, 2014

LONDON, Aug. 7 -- The Citizens Advice Bureau issued the following news release:

As the Monetary Policy Committee decides to maintain interest rates at 0.5 per cent, Citizens Advice today emphasises that any future rise needs to be 'slow and steady' in order to ensure the economy continues to recover and households aren't landed in unmanageable debt.

Citizens Advice Chief Executive Gillian Guy said:

"Households who are just about keeping their head above water could get into difficulties if interest rates go up. For the economy to continue to recover and households to be able to meet their financial commitments, any increase in interest rates needs to be slow and steady. While a rate rise is inevitable people need time to prepare.

"Raising interest rates will have the greatest impact on mortgages but it could also affect homeowners' ability to cover other costs. It's likely that people may not get into mortgage arrears straight away because they get behind with other bills instead or choose to cut spending from elsewhere.

"Now is the time for people to review their finances to look at how they can prepare for any rise in interest rates. It's also important that lenders help and show some understanding towards customers who may struggle with a rate rise. Anyone worried about the impact of an interest rate increase can get help from Citizens Advice."

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Source: Targeted News Service

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