If interest rates increased by 1% then over one third of British adults would find it difficult to afford the repayments on credit agreements, according to a recentsurvey. These would include mortgages, of which 38 % would struggle to repay, credit card liabilities and various other types of loan. More worryingly, the survey found that between 2% and 4% of the adults with the common forms of credit, depending on which type, could not afford to repay the debt at all if the interest rate increase occurred, with the exception of payday loans where 11% would be unable to afford repayments. Furthermore, as manyas 41% of British adults expressed worry about their current level of debt.
Any increase in interest rates will cause financial problems for many people, and it is important that individuals with any form of borrowing should make plans to deal with a changing financial. Should you have any concerns in this regard then please contact us. Initial consultations are always free of charge.