higher bills could hit over winter periodThe latest Lloyds TSB Consumer Barometer has found that consumers are more optimistic when it comes to interest rate movements, but less positive on almost every other level.

The number of consumers who believe that interest rates will be higher than they are now in 12 months' time fell from 53 per cent in October to 43 per cent this month, the study revealed.

But worries are increasing over higher prices and employment prospects, potentially meaning that a debt consolidation remortgage could be on the cards for many in the coming months.

"It's now pretty much expected - by economists and consumers alike - that the Bank of England will begin to cut interest rates in coming months," said Lloyds TSB Corporate Markets chief economist Trevor Williams.

"But if prices continue to rise next year, as consumers predict, this will come as little relief to many household budgets," Mr Williams added.

The Council of Mortgage Lenders recently suggested that interest rates would be cut three times in 2008.

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