Challenge over debt message

The Money Advice Trust (MAT) found that nearly four in 10 (38%) people who called its National Debtline advice service for help with their finances were unaware that interest rates may rise in the near future.

It said its findings highlighted the “huge challenge” of helping people who were likely to be at the “sharp end” of interest rate rises to prepare for the increased cost of borrowing that would come after the Bank of England base rate moved up from its historic low of just 0.5% low.

The charity also raised concerns that the debate over the impact of interest rate rises had so far focused principally on households with mortgages.

It said people living in private rented accommodation were also facing the prospect of higher rents as landlords would pass on their additional cost to tenants.

Last week, Chancellor George Osborne said Britain must prepare for rises in interest rates.

“One of the biggest monthly bills that many people pay is their mortgage and an important source of income for people is their savings, so it’s no wonder that people are starting to talk about what a rise in interest rates might mean for us all,” he said.