Budget Planning

Higher interest rates 'may add strain to people's finances'

13-01-10, 04:26 in Budget Planning
Higher interest rates 'may add strain to people's finances'
The impact that rising interest rates could have on the finances of UK workers has been noted by one expert.

According to Richard Perks, Mintel's director of retail, consumers do appear to be aware that they may face "tough times" in the future.

Predicting what may happen after this year's general election, he commented: "Higher taxes and rising interest rates will really squeeze incomes."

Mr Perks also suggested that last month might have seen more positive trading figures from some of the country's retailers because consumers were willing to "have a good time" before tightening their belts this year.

The expert noted that value for money is something that shoppers are likely to focus on when the economic climate is unfriendly.

Meanwhile, people looking to avoid credit card debt this January may benefit from advice recently provided by Roger Edwards, the proposition director at Bright Grey, who recently warned consumers about the dangers of overspending in the new year sales.

Posted by Martin Peacock.ADNFCR-2660-ID-19555597-ADNFCR

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