It's about time Interest rates rose again...

[Dave3066]

I'm very fortunate to not have any debts or loans at all, not even a mortgage. However, it's taken me 20 years to get to that stage and I have to rent because I can't afford a mortgage. As others have mentioned, the 5.5% RPI is eating away at the meagre 0.5% interest on my savings faster than the tin worm eats the steel on our cars on a salty winter road! How do banks and building societies get away with mortgage rates that are 6 times the Bank of England base rate? A mortgage on a house the size of the one I rent would cost me £400 a month more than the rent. I know it's throwing money away to rent but I have no other option at the moment.

Something has to be done about inflation. If that means raising interest rates then I'm all for it. It'll be a long time before the interest rates rise above inflation though so make sure you're getting the best return for any investments, make sure you're paying off the highest interest loans or credit cards first and if you have savings and a credit card that you don't pay off completely every month.....why. You're losing money every day in the interest on the loans or credits cards and the interest on your savings is not making up the difference.

I'm a huge fan of both Paul and Martin Lewis and follow both on Twitter just for the up to date financial and economic updates. It's surprising what information gets missed or lost in the general chatter of news.

Dave