More than six million Brits escaped further strain on their finances following the decision by the Bank of England to hold interest rates at 5.25 per cent.

Research shows that more than six million Britons, when questioned, said they were struggling with their debts, or their finances were overstretched with interest rates at 5.25 per cent.

"It was pretty much expected that rates would be kept where they are," said Swindon Independent Financial Adviser Sean Wilson.

"It is a welcome decision for home owners and businesses hit by a series of interest rate rises in the last year.

"However we should expect an interest rate rise of 0.25 per cent in May.

"It is definitely the time to sort out your mortgage or remortgage before a another rise. Fixed or capped rates would be a priority."

Joanne Gill, head of marketing at Chiltern debt management company, said: "We saw the number of people seeking help with their debts double after the interest rate rise in January and our research shows that millions of people are already struggling with their finances.

"It's good that the decision is not going to add to an increase in that number although we do expect to see a rise in the near future and it's important that those already struggling do something about it now."

She said its website at www.chiltern.uk.com offers a financial health check which will show people whether they may need assistance, based on Department of Trade and Industry guidelines on overindebtedness.

The site also offers a free utility switching facility which can save households up to £230 each year. And it provides free access to a credit report.

In the red

  • Consumer debt in the UK stands at over £1.25 trillion
  • The average Brit owes £27,445 (including unsecured debt)
  • Unsecured debt stands at £8,791 per adult in the UK
  • Personal insolvencies rose by 44.1 per cent in the final quarter of 2006 compared to the same period in 2005
  • During the same period an 81.9 per cent increase was recorded in the number of people taking out IVAs.
  • More than six million Brits have taken out consolidation loans averaging £13,000 each in the last three years in a bid to get their debt under control