IVA : Interest Rate Rise Puts The Pressure On Debts.

The Bank of England has raised interest rates again by a quarter percent, from 5% to 5.25%.

The rate rise signals that the Bank of England are still concerned about the speed of growth in the economy.

By raising interest rates they are applying the financial brakes, in the hope that the extra tightening of peoples spending power will reduce the pressure on the inflation rate.

Unfortunately, the side effect of raising interest rates in this way, is that the cost of borrowing becomes higher, which in turn nudges thousands of borrowers closer to the point of insolvency.

Levels of IVAs, individual voluntary arrangements, are already expected to rise following the festive season, and this new interest rate rise may add to the increase of people requiring assistance with a serious debt problem.

If you require assistance with a serious debt problem, or would just like to talk through your personal debt circumstances with a professional debt adviser, then call one of our debt specialists at www.myIVA-Adviser.com for free on 0800 088 7503, anytime.

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