Interest rate rise could compound people’s money problems, says Citizens Advice
Today the Bank of England has decided to raise the base rate for the first time in a decade to 0.5%.
In response to the decision, Gillian Guy, Chief Executive at Citizens Advice said:
“Today’s interest rate rise risks compounding the problems of people already in financial difficulty.
“While many people won’t be affected by the change immediately, those who are struggling to pay existing debts or are relying on credit to pay their bills could see their debts increase.
“With consumer borrowing still rising, now is the time to ban credit card companies from making unsolicited credit increases, burying people deeper in 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 Citizens Advice 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.
- Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 2,500 service outlets across England and Wales.