The interest rates will remain hign even though the bank of england base lending rate has fallen, the main reason is people tend to stop paying unsecured loans the moment.

Taxpayers are angered by the rates especially since the taxpayers money was used to bail out the banks and their money is now being lent to them a extremely high interest rates.

Debt consolidation with personal loans are still a cheaper option if you only pay the minimum on your credit cards each month. However the only way it will work effectively if you get rid of the credit card completely, is by closing the account, not just cutting the card up. Cutting it up only means if you are a credit card junkie, when you feel there is a need for the card, you will call up the credit card company and get a replacement. Before you know it, you will have to service the loan and the credit card, which will inevitably mean an additional payment.

This pattern can eventually lead to you missing payments, messing up your credit rating and in case you loose your job or you have a drop in your business, it will ultimately mean you might become insolvent and if you do own any property, you can end up lossing it as well.