Debt specialists hope for interest rate freeze

One of the UK’s leading debt management specialists is urging the Monetary Policy Committee (MPC) to hold interest rates at their current level when it meets this Thursday to avoid a worsening of the debt crisis in the UK.The company, which has been helping people in debt for more than 10 years, said that January’s interest rate rise saw the number of calls it received from people struggling with their debts double.

It predicts that a further rise following this week’s meeting would lead to another surge in Britains worrying about their financial situation.

Minutes from the last MPC meeting reveal some members voted for a further rise in the rate to 5.5 per cent to help steer the economy towards its two per cent inflation target.

Jackie Newton, Chiltern’s general manager is quoted as saying: “An interest rate rise in January will always have a big impact, but when looked at in combination with some of the most recent personal debt facts and figures, it does appear that the UK is lurching towards an untenable level of personal debt.

“This situation can only be exacerbated if the MPC opts to increase interest rates again this week.”