Impact of high interest rates “has already taken hold” for struggling households
Charity behind National Debtline responds to Bank of England's interest rate decision
Posted December 14, 2023
The charity behind National Debtline has today responded to the Bank of England’s Monetary Policy Committee’s decision to maintain the base rate at 5.25 per cent.
Two in five callers to National Debtline have incomes that are too low to meet their essential costs, and recent findings from the charity show one in six people in debt (18 percent) have not told anyone about their situation.
The charity is urging anyone worried about their finances to seek debt advice as soon as possible.
David Cheadle, acting chief executive at the Money Advice Trust, the charity that runs National Debtlinesaid:
“The impact of high interest rates has already taken hold for millions of mortgage holders struggling with higher payments. And for people on fixed term deals, the shock of a steep increase in mortgage repayments is still to come.
“People who rent are not immune from the impact, and many have seen their rents jump as rate rises are passed on by landlords.
“As the cost of essentials seems set to remain high across the board, as we see at National Debtline, for people on the lowest incomes, budgets are no longer able to stretch.
“If you are struggling with your mortgage repayments, reach out to your lender – there is help they can offer.
“And if you are worried about paying your mortgage or any other bills, speak to an adviser at National Debtline who can talk you through the right options for you.”
National Debtline provides free, independent, expert advice. Contact us on 0808 808 4000 or via www.nationaldebtline.org.
National Debtline’s steps you can take if you are worried about your mortgage repayments:
- If you are having problems paying your mortgage this can be incredibly stressful, but there is help out there.
- It is never too early or late to contact your lender. The earlier you talk to them the more likely it is that a solution can be found.
- Assess your situation and work out how much you have coming in and going out, prioritising your essential household bills like your mortgage and council tax and energy. There are lots of budget planners than can help with this.
- Speak to a free debt advice service like National Debtline, our advisers will be able to take you through your options based on your circumstances. Contact National Debtline on 0808 808 4000 or via www.nationaldebtline.org.
