Debt levels are rising in relation to household incomes, according to the Bank of England (BoE), suggesting more people could soon be looking for debt consolidation loans.

The BoE's deputy governor, Rachel Lomax, told the Hull and Humber Chamber of Commerce that the proportion of income allocated to servicing debt payments is also on the rise.

Ms Lomax said: "The share of income which needs to be devoted to interest rate payments was already set to rise sharply, largely as a result of rising debt levels."

She added that a growing number of households are also having "difficulties with their debts" suggesting a debt consolidation loan could be a solution to a number of these people.

Ms Lomax's comments come following the recent publication of the BoE's monetary policy committee (MPC) minutes from November's interest rate decision meeting, where the base rate was maintained at 5.75 per cent.

The notes showed that the MPC voted seven to two in favour of maintaining the rate.
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