Ritchie calls for action to prevent household debt crisis
SDLP MP for South Down Margaret Ritchie has called for the UK government to take action to prevent a household debt crisis should the base rate of increase rise.
Ritchie has tabled a Parliamentary Motion on this issue in the House of Commons and stated, “A rise in the base rate of interest and a subsequent spike in mortgage payments could push millions of people, including many families, towards a perilous financial situation.
“Research from the Resolution Foundation has demonstrated that if the interest rate rises to 3% by 2018 over a million families could face serious debt worries and even mortgage default, with over half of these cases involving families with children.
“Families in the north are already facing incredibly challenging economic conditions, with record petrol and home energy prices meaning that a rise in their mortgage, resulting from a higher base interest rate, could be the final straw,” she insisted.
“Household debt is a ticking time bomb with many managing to get by only by overloading credit credits, especially during the Christmas period.
Ritchie added, “While tackling the wider cost of living crisis the UK Government must work with the Bank of England to ensure a responsible approach to the interest rate that does put added pressure on homeowners, especially young people with families.”
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