Altrincham, United Kingdom (PressExposure) March 16, 2011 -- The Monetary Policy Committee voted so that the cost of borrowing will remain 0.5 percent as it has been for the past two years. This is something that the experts say was predictable and very much expected though there were high chances of the rates being raised because of the recession that is being faced by the country's economy. There however are varied views concerning the time that this is expected to change since the inflation is still threatening and the economic recovery is not as strong as should be. This is good news to those people that have debt problems.
Although the base rates are still held, it is important for those with debt problems to look for ways of managing their debt just incase these rates are raised. Applying for IVA is something that should be very much considered more so if the inflation rates is to go up. For those thinking of going for mortgages it would also be better to go for those that are given on fixed rates so as to avoid any form of instability. This allows one to budget and plan for the future without having any worries of what is to come depending on the economic status.
One senior economist says that the Monetary Policy Committee has been in a difficult position of not knowing what to do. This is mainly because they want to raise the rates owing to the high inflation rate but can not do so because the rate of economic recovery is not strong enough. This concern might hold the rates down at least till the end of this year. This is a good situation for those people that might be facing repossession risks though there are also concerns about the inflation staying higher for a long time. This might lead to people finding debt management help that will enable them to maintain their living standards.
If prices are to go higher than they already are then chances are that people will find it more difficult to cope with life including those that have mortgage payments to deal with. People might even be forced to apply for bankruptcy [http://www.deltadebtmanagement.com/debt-solutions/bankruptcy-information/] if the economic inflation increases which might be a very bad threat to the economic recovery. It is advised for those that are struggling with mortgages to go for any kind of debt management plan that might be helpful to them as soon as possible. Insolvency Voluntary Arrangement being one of the best ways that people can go about taking care of the debt problems they are involved with. With the budget being awaited on March 23rd many people are hoping for reduction of useful commodities such as oil which makes life even harder for them with high prices.