Bank of England Governor warns of major debt crisis

June 22, 2007 on 10:22 am | In Debt Management

I’ve just been reading a transcript of Mervyn King’s speech at the annual Mansion House banquet and it doesn’t pull any punches. It looks like there could be another rate rise in the next few months which could tip millions of household budgets into the red. He went on to urge families to “be cautious about how much you borrow”. All the advisors I talk to expect rates to be up to 6% by the end of the year which means someone on a typical £125,000 mortgage will be paying an extra £100 per month compared to last year. When you consider that we are already seeing rises in council tax, water and food bills, the combination could have devastating effects.

But if you are reading this and think you could be affected, there is something you can do - Get some good quality debt advice as soon as possible. It only takes a discreet phone call and the sooner you do it, the sooner you’ll be able to get back on your feet. Advice is free - make sure you get it.

 

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