UNEXPECTED INCREASE IN INTEREST RATES
Just Another Financial Pressure For Consumers In 2007
Plan For The Future Advises Equifax
London, 11th January 2007 –- Consumers will be shocked to hear that the Bank of England announced today that interest rates will increase by 0.25%. With an increase in home repossessions of 76% year on year and insolvency figures predicted to be far higher than last year, the financial outlook for many in 2007 doesn't look good.
Equifax, the leading instant online credit information provider, is warning that the rise in interest rates, coupled with increased council tax and utility bills, means consumers need to ensure they plan financially for the future or face getting into unmanageable debt.
"It is crucial that consumers plan for the future and not just in the short-term" says Neil Munroe, External Affairs Director, Equifax. "We are only a couple of weeks into the New Year and people are already faced with repaying hefty credit card bills from Christmas and large gas and electricity bills for the winter months. Plus in April many householders will have to pay increased Council Tax bills.
"Now is definitely the best time for individuals to sit down and plan their financial future, to ensure they are prepared for any unexpected financial pressures."
Munroe also warns that while some people may think declaring themselves Bankrupt could be a good way to get out of debt, it will affect their job prospects and will have a negative impact on their credit status for quite a few years to come.
First Time Home Buyers worried about interest rate rise
Claire Foster from Surrey is planning to move later in the year, but is now concerned that the third increase in four months on her current mortgage repayments, plus larger utility bills and council tax bills, might mean she has to rethink her plans.
Claire says: I am really frustrated that my mortgage will be going up again. In just 2 years it has risen from £700 to nearly £800. I am quite careful with money and try not to run up debts. But with rising electricity bills, council tax, motoring costs and interest rate rises, a change in my circumstances would put me in dire straits. The cost of home ownership is soaring. I am even considering stepping off the property ladder and renting for a while."
To get a clear picture of all their financial commitments, Equifax recommends that consumers get a copy of their Equifax Credit Report™. This can be done instantly online at www.equifax.co.uk
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