Latest interest rate rise could push borrowers over the edge
The introduction of the widely predicted interest rate rise to 5.75% could have disastrous results for Britain’s borrowers and could push people closer to insolvency warned financial solutions provider Debt Advisers Direct.
The quarter point rise is the third this year and means that 2007 could go down as the worst year ever for Britain’s debt crisis.
“Consumers still reeling from the May increase who are already stretched to the limit on monthly bills and repayments are now facing a potential further £20 a month to pay on a £100,000 mortgage,” stated Debt Advisers Direct, “When added to the previous four base rate rises in the last year, repayments will have gone up by as much as £80 a month, leaving hard up families in cash crisis"
A spokesperson for Debt Advisers Direct urged, “Those feeling overwhelmed by their financial difficulties to seek debt advice now before their situation worsens. There are many practical financial solutions available to suit every financial situation and free, expert advice early on can make a dramatic difference to your financial future.”
The true scale of the problem is unlikely to be seen until those people nearing the end of their fixed rate mortgage deals enter the market, only to face the prospect of much higher costs: Figures from The Council of Mortgage Lenders suggest that around 1.3 million borrowers took out fixed-rate mortgages in 2005 and a further 1.5 million in 2006. The impact on those facing a potential increase of as much as 1.5% on their mortgage rates when they come to seek out a new deal can only add to the debt crisis.
As the latest interest rate rise will undoubtedly affect many people who are already on the brink of financial crisis, the risk of repossession has prompted many people to turn to companies like Debt Advisers Direct for help. The Debt Advisers Direct spokesperson commented, “Because our range of financial solutions encompasses debt consolidation, debt management, IVAs, and managed banking services, we are able to advise people on the most appropriate solution for their circumstances. Through discussions with clients, our debt advisers establish each individual’s income and expenditure details and, from this, are able to assess which solution is right for them.”
Debt Advisers Direct is one of the longest established UK based debt solutions (http://www.debtadvisersdirect.co.uk/ ) providers. Although Debt Advisers Direct help hundreds of thousands of people with financial difficulties each year, their success relies on treating each and every client as an individual, with their own set of unique requirements.
Debt Advisers Direct believes that, “Dealing with debt can be extremely stressful and many of our clients come to us after trying to sort out their problems alone, without success. By offering expert debt advice we aim to take that stress off our clients and establish a single, personal point of contact that our clients know they can turn to and trust throughout their recovery period.”
Debt Advisers Direct PR contact
Think Money – Debt Advisers Direct
0845 056 6480
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- Melanie Taylor
- Debt Advisers Direct PR contact
- Debt Advisers Direct
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