The Bank of England have decided to keep interest rates on hold at their record low of 0.5% for the eighth straight month, in a bid to ease the economy and curb the nation’s debt problems.
The Bank also said that they would continue with the Quantitative Easing programme, where they will pump an extra £175bn in to the economy.
As figures showed the recovery from the recession remains very patchy and the job market is still slow, many leading debt advice organisations agreed that the move to hold interest rates remained the best option for people struggling to get out of debt.
Ivan Cooper, Chairman at debt management specialists Chiltern, said: “With interest rates maintained at a record low, mortgages and other credit lines are kept at an affordable rate.
“People who are trying to get rid of overdrafts, loans and credit card debts should take this opportunity to clear them whilst they can – as when interest rates rise, as they inevitably do, more people will be at risk of developing serious debt problems.
“It’s always worth seeking impartial debt advice as soon as you realise that you may not be able to afford to maintain your credit commitments.”
