The Clock Is Ticking Until 11 May - Bank Rate Announcement Day Again

8th May 2023

The Bank of England will announce if interest rates will rise or remain unchanged. If as many expect another rise of .25 is added to take it from 4.25% to 4.5% then mortgages, credit cards and other forms of debt will become more expensive.

A knock-on effect of a rise will be more pressure on the cost of living. Rents may increase where landlords have loans on their properties.

Councils all have varying levels of debt that can be affected by a rise in interest rates ultimately putting pressure on already squeezed spending on services. In fact some councils are already using reserves to help smooth out problems but this cannot go on indefinitely.

In recent months there has been a big increase in credit card debt as people try to buy even essentials but again there is a limit to how long that can go on.

Even if the interest rate does not change the position of previous rates increases is still working its way through they system. For example many people are still coming to the end of their previous fixed rate mortgage agreement pushing up their monthly payment significantly for a new fixed rate.

What can be done?
For fixed rate mortgages start looking early to compare rates.

For credit cards check out any good deals on transferring debt if you cannot pay it off quickly.

For anyone with really serious debt issues get FREE debt advice.

There is no need to pay for debt advice as often this costs more to get it. Check with council, government and citizens advice services on how to deal with debt. They are all free and give unbiased advices and no fees.

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