Interest Rate Hike Responsible For Spiralling Debt Amongst HomeownersAfter the recent increase in the Bank of England base rate, homeowners are taking on increasing debt in order to meet repayments, a new industry survey reveals.

As more and more homeowners increase their debt burden, further interest rate increases could have a severe impact on the economy, and could lead to an increase in bankruptcies and debt problems without careful budgeting and financial planning. David Bruce of Bluestar Finance( http://www.bluestarfinance.co.uk ) suggests that although increased borrowing can ease the problem, it is important to make sure you borrow within your limits. "When times get tough many people naturally turn to lending institutions, and I would recommend this as a suitable option. However, it's important to make sure you receive up-to-date, sound advice on your options, and the legal ramifications of any lending decision you do make to ensure your borrowing is within your means and right for your circumstances."

The Bank of England base rate currently stands at 5.75%, having a direct impact on the majority of mortgages and homeowner loans( http://www.bluestarfinance.co.uk/loans/homeowner_loans.php ) nationwide.

About:

Bluestar Finance are a Norwich-based finance company, involved in brokering secured homeowner mortgages and personal and bad credit loans( http://www.bluestarfinance.co.uk/loans/bad_credit_loans.php ), as well as advising clients on the current borrowing climate.