Citizens Advice says households ‘need time’ to adjust to interest rates
Citizens Advice has responded to comments by Bank of England Governor Mark Carney that interest rates are likely to rise in late 2015.
Gillian Guy, Chief Executive of Citizens Advice, said:
“Households need time to adjust to an interest rate increase.
“Historically low interest rates over the past six years have made it easier for people to manage their finances. A rise in rates will make things harder for those already struggling, and push those who are just about managing over the edge.
“Our evidence shows one in five homeowners will fall into arrears when interest rates rise.
“To limit the pressure on families’ budgets, any rises in interest should be slow, steady, and come with plenty of warning. Access to money and debt advice will be essential to help prevent large numbers of people falling into problem debt.”
Notes to editors
- The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
- The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
- To get advice online or find your local bureau in England and Wales, visit citizensadvice.org.uk
- You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
- Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.