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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`

Could we see negative interest rates?

10/09/2009

Today at midday, when the Bank of England`s Monetary Policy Committee (MPC) announces its latest decision on the base rate, it`s widely expected to keep the rate at 0.5% for the sixth month in a row.

Of the many people waiting to hear the decision, homeowners with tracker and variable-rate mortgages may be the most eager, as any change would be likely to affect the cost of repaying their mortgage debt.

An article on the BBC website asks whether we could actually see interest rates drop below zero - something which the British Chambers of Commerce (BCC) has suggested could help the economy.

BCC chief economist David Kern said that "One must now question the conventional view that cutting rates below 0.5% will not help.

"By cutting rates further and by considering, in limited circumstances, a negative interest rate - along the lines adopted in Sweden - the MPC could discourage hoarding of cash, and encourage lending."

By saying `the lines adopted in Sweden`, he was referring to the recent decision by the Swedish central bank (the Riksbank) to drop its rate to -0.25%, marking the first fall below zero.

If the UK rate dropped further, this could have an effect on savers and borrowers alike, as it could, in some cases, reduce the reward for saving as well as the cost of servicing debt.

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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