'Treat rise in rates as a savings wake up call'
09/08/2006
Last week's rise in interest rates should be treated "less as blanket bad news for the heavily indebted" and "more as a wake up call to save more and spend less", IFA Promotion (IFAP) advises.
According to the company's chief executive, David Elms, "being on top of our finances has never been more vital".
Latest findings from IFAP indicate that 72 per cent are not happy with their savings, with eight million claiming they enjoy spending too much to save.
With the Bank of England's Monetary Policy Committee (MPC) raising interest rates to 4.75 per cent, IFAP is encouraging the nation to start boosting its savings accounts.
Mr Elms said: "The interest rate rise is minimal, but has met [with] a shock reaction, which I hope will trigger people to finally take their heads out of the sand and act logically when it comes to their future financial security.
"At the very least, it should deter people from unnecessary spending and the temptation of taking on new debt, but what we really need is a long-term commitment to saving. With the prospect of increased rates of returns, now is an ideal time to start."
The decision to raise interest rates by 0.25 per cent was the first time the MPC has changed rates for 11 months.
According to the company's chief executive, David Elms, "being on top of our finances has never been more vital".
Latest findings from IFAP indicate that 72 per cent are not happy with their savings, with eight million claiming they enjoy spending too much to save.
With the Bank of England's Monetary Policy Committee (MPC) raising interest rates to 4.75 per cent, IFAP is encouraging the nation to start boosting its savings accounts.
Mr Elms said: "The interest rate rise is minimal, but has met [with] a shock reaction, which I hope will trigger people to finally take their heads out of the sand and act logically when it comes to their future financial security.
"At the very least, it should deter people from unnecessary spending and the temptation of taking on new debt, but what we really need is a long-term commitment to saving. With the prospect of increased rates of returns, now is an ideal time to start."
The decision to raise interest rates by 0.25 per cent was the first time the MPC has changed rates for 11 months.
