BoE base rate turning consumers to debt management plans
BoE base rate turning consumers to debt management plans
Monday 12th April 2010
That is if the results of a new street poll by Adfero are anything to go by after it was suggested that more than half of Britons are feeling worse off financially since the bank's Monetary Policy Committee (MPC) dropped its interest rate to a 300-year low of 0.5 per cent.
In the study carried out in Sheffield city centre, 56 per cent of people reported that they were feeling the pinch as the low interest rate continues to hammer personal savings accounts at a time when credit card rates have reached a 12-year high.
Graham Jackson, 54, stated: "It makes a big difference to my mortgage payments. It effects that a lot. I really have noticed it."
Meanwhile, 31-year-old Chris Rowley spoke of his frustration at the low base rate.
"Things are so bad at the moment, I don't reckon any of it makes much difference to be honest," he commented.
Of those questioned only four per cent said they had no knowledge of the situation and were unaffected either way.
However, for the remainder the likelihood of entering debt management plans could be more prevalent as new research revealed that 11 per cent of the UK population are struggling with debt.
The BoE decided to drop its base rate during the height of the recession, a move that was coupled with its quantitative easing programme, in a bid to stabilise the economy.
Last week the MPC voted in favour of keeping the rate unchanged at 0.5 per cent for the thirteenth consecutive month.
However, many consumers have since asked for a return to increased interest rates in order to gain more from their investments and savings.
News article brought to you by Debt1 – UK debt management specialists
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