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More than 4 million fear they`ll be made redundant Consumers took on more mortgage debt in July Debts called in by parents Teenagers `scared of debt` Rising household costs could pressure people in debt Pensions debt may impact workers` retirement funds Welsh young adults `at highest risk of debt problems` Over 50s can`t afford to enjoy retirement because of debts Budget: tackling the nation`s debt Short-term debt: `no need for price control` The cost of clearing debt Education debt Tackling the national debt Number of mortgage deals on offer exceeds 3,000 Almost 5 million take on debt to pay household bills OECD: household debt more than 120% of disposable income Petrol price falls help people in debt Amount of mortgage debt taken on at lowest level in ten years Northern Ireland sees significant IVA rise Overdraft debt `becoming more expensive`

Struggling consumers `will be looking for rate cut soon`

05/09/2008

Consumers in Britain facing debt problems in the light of rising inflation and soaring household bills will be looking for the Bank of England to cut interest rates soon, according to one firm.

Yesterday (September 4th), the Bank`s Monetary Policy Committee (MPC) voted to keep the base rate at five per cent.

The news will not have been welcomed by homeowners who were hoping for cheaper mortgages.

Commenting on the decision, Virgin Money said: "Holding the rate at five per cent should help to instil a period of stability into the market, but with household bills, food and petrol all rising at inflation busting rates, consumers and businesses will be looking for a cut soon."

Prior to yesterday`s announcement, it had been widely predicted that the MPC would choose to hold interest rates.

Graeme Leach, chief economist at the Institute of Directors, had said it will take "a lot more evidence of slowdown" before a cut is announced.

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Debt experts Debt Advisers Direct provide debt advice and a range of debt solutions, such as debt consolidation loans and IVAs (Individual Voluntary Arrangements).

More than 4 million fear they`ll be made redundant 16/12/2010 - According to R3`s quarterly personal debt tracker, more than 4 Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according