Mike Pavitt, chairman of R3’s southern committee commented on the Bank of England’s interest rate decision.
He said: ‘The Bank of England’s Monetary Policy Committee has decided to raise the base rate to 0.5 per cent. Even a small rise to the historically low level of interest rates could cause problems for many borrowers.
‘The latest statistics showed an increase in the number of people becoming insolvent in the third quarter of this year.
‘Our concern is that many people now take soft credit terms and low interest rates for granted, to an extent, whether or not they realise it, and should the current conditions change, they will find themselves exposed.’