Home > News > Debt advice

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`

Consumers ‘could expect to see full benefits’ of rate cuts

07/11/2008

Consumers could expect to see full benefits of any cut to the Bank of England’s base rate, the prime minister’s official spokesman has said.

“The prime minister is very clear that we are taking the action to ensure that more mortgage holders and small businesses feel the benefit,” a government spokesman said.

However, as The Guardian reports, David Hodgkinson, HSBC’s Chief Operating Officer, had warned that banks may not pass on the full benefit of interest rate cuts.

“Clearly if interest rates are down significantly,” Mr Hodgkinson said, “the rates for borrowing will go down. But I am not going to say it is absolutely linear.”

Half of banks cut their standard variable rates following the Bank of England’s half-point rate cut last month.

“Analysts are predicting further cuts to the base rate,” said a spokesperson for Debt Advisers Direct, “although we don’t yet know how much of those cuts will be passed on to consumers. Any reduction will, of course, help people with debt problems, but it’s not clear whether it’ll be enough to help them really get back in control of their finances.

“As always, if anyone’s finding it hard to stay on top of their debt payments, they should seek professional debt advice without delay – in general, the sooner they act, the simpler it should be for them to get their debts under control.”

---

Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, 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