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`

Base rate stays put for first time in 6 months

09/04/2009

Today at noon, the Bank of England`s Monetary Policy Committee announced that the base rate would not drop this month - for the first time in six months.

As recently as October last year, the base rate stood at 5%, but this was followed by an unprecedented series of monthly cuts: in October it fell by 0.5%; in November, by a full 1.5%; in December, by 1%; and in January, February and March it fell by 0.5% each month, reaching an all-time low of 0.5%.

At 0.5%, there`s clearly little scope for further reduction, so today`s decision was widely expected - Nationwide Building Society, for example, estimated that there was a 95% chance of `no change` and a mere 5% chance of a 0.25% cut.

"Many people with variable-rate and tracker mortgages have benefited hugely from these cuts to the base rate," said a spokesperson for Debt Advisers Direct, "with many of them seeing their monthly expenses drop by hundreds of pounds. For people in debt, this represents an excellent opportunity to overpay their debts - to pay more than they`re obliged to - without actually spending any more than they`re used to doing.

"And plenty of homeowners who don`t have significant unsecured debts are taking the opportunity to overpay their mortgage, which can take years off their mortgage and save them thousands of pounds in interest in the long run.

"Anyone who`s wondering how they can get the greatest benefit from this `extra` money every month should get some debt advice - making the right decision could make an enormous difference to their finances in this recession."

---

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