Asesh Sarkar, CEO of employee loan provider, SalaryFinance, says that news of the Bank of England looking likely to slash interest rates to record lows is a double edged sword for Brits. On the one hand, those wishing to purchase a house, for example, will have access to really low mortgage rates – allowing them to pay off their loans faster.
But on the other hand, low interest rates traditionally mean that the economy is in trouble – which we know in this case that it is. Sarkar says that the cuts to interest rates will also mean people will be less likely to put money aside for a rainy day.
Asesh Sarkar, CEO of employee loan provider SalaryFinance, says:
“The cuts to interest rates mean that people will be less likely to save in the foreseeable future. With interest rates already at record lows, the concept of putting cash aside for a rainy day will become even less attractive than it is now.”
“However, the real problem lies in the possibility of more and more people in the UK turning to credit or some form of debt in order to support their finances, with Britain already facing a personal debt crisis topping a record £180 billion this year.”
“With this period of uncertainty set to continue for the foreseeable future, people should consider consolidating their existing debts now. Taking control of your financial position during this period will pay off in the longer term”.