Money education charity Credit Action warned yesterday that the Bank of England’s decision to raise interest rates in January saw double the number of people struggling with their debts.
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According to the organisation, a further rise would see a worsening situation in terms of UK debt because people would have to spend more on their mortgage and have less to spend on everything else. This in turn would leave many turning to credit to survive.
Chris Tapp, associate director of Credit Action says, however, that there are ways in which people who are in debt can help themselves.
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He explained: “The first thing that people who are struggling can do is to speak to someone who can offer free and independent advice such as ourselves or the Consumer Credit Counselling Service.
“However, if people think they might be in a difficult position then they have to look at their finances and look to get a grip on spending.”
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