Tuesday 11th September, 2007 

To be in the unfortunate position of having a poor credit rating, is not good financial news. Behind each unfavourable rating, is a person or family struggling to cope with existing debt problem.

That is why the recent warning from top economist at Global Insight, Howard Archer, should sound particular alarm bells for borrowers who are already experiencing trouble with debt.

He warns that recent rises in interest rates have made lenders look more closely at how much they will lend and the past history of prospective borrowers.

Debtors who have a bad credit record may well find it even more difficult to obtain a sufficient mortgage with a preferred lender or at a favourable rate. Regrettably, those who can least afford it will be paying the most to borrow money and further jeopardising their financial stability.

For good credit Britons, the six year high in interest rates is worrying enough. For those in an already perilous financial situation, stricter borrowing conditions could well be the last straw for debt-ridden backs.