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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`

Base rate decision `good for people in debt`

08/03/2007

The base rate will be held at 5.25 per cent, the Bank of England`s monetary policy committee (MPC) announced today.

Anticipating the decision, some financial analysts had raised concerns that an interest rate rise could negatively affect those seeking to get out of debt.

Nationwide Building Society yesterday said that consumer confidence had fallen since the first rate rise in August "as [people] face higher debt repayments".

Milan Khatri, chief economist at the Royal Institution of Chartered Surveyors, welcomed the MPC`s resolution to hold rates, saying: "Because of recent volatility in the financial markets, this is the correct decision."

However, he warned that "respite for financially-stretched households could prove short-lived", as the MPC has indicated a further rate hike may be necessary.

Mr Khatri added that the housing market has remained "healthy" and the MPC`s decision suggests that "affordability conditions will remain difficult for would-be home buyers" this year.

The MPC has raised interest rates three times since last summer.

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