Gregory Pennington - debt management company

Negative equity `could last for four more years`

Wed, 1 Sep 2010 15:53:13 GMT

Tens of thousands of homeowners who bought their home during the `housing boom` could be in negative equity for another four years, according to the National Housing Federation (NHF).

The NHF says that while the average house value at the peak of the market was £216,800, homeowners may have to wait until 2014 - when prices are predicted to reach £226,900 - before they can recover what they originally paid.

Negative equity occurs when the value of a property is less than the total remaining mortgage debt - meaning that selling the home would not completely pay off the mortgage.

This has become increasingly common in recent years due to sharp falls in house prices.

An expert at debt management company Gregory Pennington said: "Negative equity has affected a lot of people in recent years, especially those who took out 0% or low-deposit mortgages at the peak of the market. This makes selling an unattractive option for many people, and it can also cause difficulty with finding a remortgage deal.

"Some people in negative equity will manage well on their lender`s standard variable rate [SVR], but anyone concerned about how negative equity is affecting them should seek financial advice."

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

Debt rises in July

Wed, 1 Sep 2010 16:3:35 GMT

In July, British consumers took on more debt than they repaid, according to the Bank of England.

Every month, the Bank publishes its `Lending to individuals` figures for the previous month.

The most recent figures - for July - were released yesterday. They show that people took on more debt than they repaid in that month, in terms of both secured debt and unsecured debt.

The increase in secured debt was actually quite small - just £86m. Over the last six months, secured debt has grown by an average of around £800m per month.

As for unsecured debt, this grew by £173m, which was quite close to the six-month average of around £200m.

In total, we collectively owe £1.456t. £1.239t of that debt is secured against property, while the remaining £217bn is `consumer credit` - credit cards, unsecured loans, etc.

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

Cost of student debt to rise

Fri, 27 Aug 2010 16:50:21 GMT

The Student Loans Company (SLC) has confirmed that interest rates on student loans will increase - meaning millions of people still repaying their debt will be worse off, The Telegraph reports.

Both those who took on the debt before 1998 and those who borrowed the money later will now pay interest on their debt - after a time when those with older loans were `effectively paid to keep hold of them`, and those with newer loans paid 0% interest.

The SLC confirmed that those who took on the debt after 1998 will now be charged 1.5% interest, while those who borrowed the money before this period will pay 4.4% interest on their outstanding balances.

So people with newer loans of £10,000 will pay £150 a year, and those with older loans of £10,000 will pay £440.

There are over 3.3 million people who are still carrying a student debt from after 1998, while around 355,000 still have `pre-1998 loan debts`.

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

Another debt boom?

Thu, 26 Aug 2010 9:17:23 GMT

We may face another `debt boom`, The Telegraph warns, in an article looking at recent figures about credit card debt.

Some experts, the article states, have warned that we could find ourselves in another `credit card boom`, which could `leave families heavily in debt as they borrow to make ends meet and struggle to pay off the money`.

It draws on figures provided by price comparison websites which show that some banks are providing credit cards with lengthy introductory periods - an average of 12.2 months, which is longer than we saw at the height of the previous credit boom.

Although these periods are interest free, some experts have voiced concerns that people will be tempted to build up debt on them, which they`ll then have to pay interest on once the introductory period has run out.

"Credit cards can be a very useful, convenient way of making purchases," said a debt management expert at Gregory Pennington, "and many people have successfully used balance transfers to repay their debt in a cost-effective way.

"However, anyone using a credit card needs to be very careful and make sure they don`t run up debts they can`t afford to repay."

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

7 million shopaholics - a recipe for debt

Thu, 26 Aug 2010 16:57:45 GMT

According to uSwitch.com, around seven million adults in the UK are shopaholics, picking up large amounts of debt in the shops.

`For the purpose of this survey, a shopaholic is defined as someone who has 50% or more as a proportion of their unsecured debt attributable to fashion purchases,` the uSwitch press release states, stating that this group were picked out because their spending and indebtedness levels are the highest.

On average, those shopaholics have an average `personal shopping debt` of £3,353 (in the case of the women) - and £3,425 (for the men).

Women who are `caught in the shopping trap` spend an average of 19% of their income on their debt repayments - more than twice the nationwide average of 8%. They also take, on average, more than seven months to clear their debt, while the average female shopper takes just over five months to do this.

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

Half of Britons `use savings to make ends meet`

Wed, 25 Aug 2010 16:56:13 GMT

More than half of Britons (56%) have used their savings to tide themselves over when they hadn`t planned to do so, according to a poll on Moneysupermarket.com.

A further quarter (26.8%) said they had not dipped into their savings, but would do so if necessary.

Just under a fifth (17.7%) said they never touched their savings unless they had previously intended to do so, but 0.7% said they use their savings account just as often as their current account.

An expert at debt management company Gregory Pennington commented: "One of the most useful things about savings is that they are there in the event of an emergency - something the 34% of respondents who say they have only had to use their savings once or twice would probably agree with.

"However, this can become a problem when people are using their savings to get themselves out of trouble on a regular basis. This indicates a more serious problem, and we`d advise anyone in that situation to seek financial help."

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

More debt for students?

Fri, 20 Aug 2010 17:36:26 GMT

As would-be students apply for places at university, an article on ITN`s website looks at student debt.

It starts by noting that we`ve seen `another record year for A-level results and an unprecedented number of university applications`, which mean that not even students with excellent grades can be sure of finding a place.

Those who do enter university, though, are facing a longer-term worry - the thought of how much debt they`ll pick up while they`re there.

After all, recent research indicates that people entering university this year will end up in debt to the tune of around £25,000 by the time they leave university and start looking for a job.

Push, the university guide, surveyed 2,000 students and found that they were getting, on average, £5,600 deeper into debt every year - a rise of 5.4% on last year`s figure.

In Scotland, however, the lack of tuition fees means students are only taking on around half as much debt.

The article ends with a mention of Lord Browne, who is looking into the cost of university and is expected to recommend an increase, which would mean even more debt for students.

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

Millions `using debt to keep afloat`

Thu, 19 Aug 2010 15:42:25 GMT

Millions of people are building up debt just to stay afloat, a recent uSwitch.com press release claims, warning that families are experiencing greater pressure than ever.

Following yesterday`s inflation figures, which showed that CPI inflation had dropped slightly to 3.1%, Ann Robinson, Director of Consumer Policy at the price comparison site, noted that this slight drop would "provide no relief" to the millions of families that were struggling just to stay afloat.

Having already cut back on luxuries, 24% are apparently cutting back on food as well as a result of the current climate.

"This is a difficult time for consumers," Mrs Robinson commented, "compounded by the fact that 16 million are experiencing a pay freeze this year. For many, the only way to keep afloat is by building up debt. Nearly one in five of us are already funding living costs with debt and five million consumers are spending more than they earn."

The site`s research indicates that 18% are funding their living costs with debt, while 49% have seen their pay frozen. 5.4 million are spending more than they earn, with 48% relying on their overdrafts.

Main cause of possessions is rent arrears

Thu, 19 Aug 2010 15:49:58 GMT

According to research published by the National Landlords Association (NLA), 47% of possessions by landlords happen because tenants fall into debt on their rent, headlinemoney.co.uk reports.

The figure comes after data released by the NLA showed that a fifth of private-residential landlords had tenants who had fallen into rent arrears during the second three-month period of this year.

Chairman of the NLA, David Salusbury, said that gaining possession of a property can be a costly expense for landlords, particularly when their tenant has fallen into debt on their rent. A large number of landlords have a mortgage to pay on top of this, he stressed, with one third of landlords saying they had paid between £250 and £1,000 to have tenants removed.

A debt management expert at Gregory Pennington commented: "It is clear that rental arrears can be a serious problem and can, in some cases, lead to eviction. We would advise tenants struggling to keep up with their rent payments to seek professional debt advice without delay."

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

Consumer Focus warns of payday loan debt risk

Thu, 19 Aug 2010 16:7:52 GMT

Stronger safeguards must be put in place to protect consumers against `spiralling payday loan debts`, according to Consumer Focus.

In a new report, Consumer Focus estimates that there are four times as many people using payday loans today as there were in 2006, with 1.2 million people now borrowing a combined £1.2bn. The average payday loan borrower takes out 3.5 loans a year.

An expert at debt management company Gregory Pennington said that although payday loans can be convenient when used correctly, there`s a risk of incurring large amounts of interest.

"As the name suggests, payday loans are designed to be paid back once the borrower has been paid. The borrower might repay an additional £20 or so for every £100 borrowed, as a typical example, which is manageable for many people who simply need a short-term loan.

"But if that repayment is missed, charges can build up very quickly, which is where the debt `spiral` Consumer Focus warns of can start.

"We would advise borrowers to think carefully about whether they can comfortably afford the repayment before taking out a payday loan. There are other ways to borrow money for the short term, and it`s a good idea to talk to a debt expert before deciding on the most suitable option."

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

Repossessions continue to fall

Thu, 12 Aug 2010 16:3:35 GMT

The number of house repossessions in England and Wales fell once again in the second quarter of 2010, according to new figures from the Ministry of Justice.

There were 17,774 possession claims in the second quarter of the year - 30% lower than in the second quarter of 2009, and 5% lower than in the first quarter of the year.

Claims that led to orders being made came to 13,389 - 29% lower than a year earlier and 7% lower than in the first quarter of the year.

The Ministry of Justice said that repossessions have been on a downward trend since the beginning of 2008.

An expert at debt management company Gregory Pennington said: "It`s encouraging to see house repossessions continuing to fall, although there are various possible reasons for this.

"On the one hand, it could suggest that the average homeowner is in a better financial position than they were before. Indeed, earlier this year the CML said that household arrears are falling.

"On the other hand, it could be that many people are benefiting from low mortgage rates. If and when rates rise again, we could see many more people start to struggle - so we advise all homeowners to do what they can to protect themselves against potential increases in their outgoings."

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

Debt and insolvency

Wed, 11 Aug 2010 16:45:49 GMT

The latest statistics from the Insolvency Service reveal how many people entered insolvency in the second quarter of the year to deal with their debt problems.

In England and Wales alone, 34,743 people entered a formal insolvency procedure to tackle unmanageable debts. 14,982 of them entered bankruptcy, 13,466 entered an IVA (Individual Voluntary Arrangement) and 6,295 entered a (DRO) Debt Relief Order.

Compared with the previous quarter, the number of people entering a Debt Relief Order or Individual Voluntary Arrangement was up by 11.5% and 14.3% respectively, while the number of people entering bankruptcy actually fell 17.9%.

The overall number of people entering insolvency was down 2.6%, but it`s still worryingly high - only three quarters (the previous three) have ever seen more people declared insolvent.

Nonetheless, the latest figures from the Bank of England show that consumers collectively repaid more unsecured debt than they took on in June - £98m more. Analysts are putting this down to two factors: the fact that lenders are more cautious about lending, and the fact that many borrowers are worried about the economy and keen to repay as much debt as they can.

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

Dealing with debt

Tue, 10 Aug 2010 16:56:4 GMT

An article in The Telegraph highlights the various ways people struggling with mounting debt can deal with their problem.

According to the publication, more than a million people in the UK have `problem debts`, and those whose unsecured debts `continue to spiral` may have to consider entering a professional debt solution.

Firstly, the article looks at debt management plans, stating that they are informal arrangements which involve renegotiating repayment terms with an individual`s creditors. If they agree to the proposed changes, a repayment plan is established which can reduce the individual`s monthly repayments.

The article then looks at IVAs (Individual Voluntary Arrangements) - which may be suitable for people struggling with unmanageable debts. An individual can only enter an IVA if voting creditors accounting for at least 75% of their unsecured debt agree to the proposed terms.

Finally, the article discusses bankruptcy, and highlights that for many people - whose debts have simply spiralled too far out of control - bankruptcy is still `the only sensible option`.

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

Council `forced to write off £4m council tax debt`

Mon, 9 Aug 2010 16:58:12 GMT

Stoke-on-Trent City Council has been forced to write off almost £4m of unpaid council tax debt over the last year, according to the BBC.

The Council says it has a "history of horrendous arrears" and has written off £3.8m of debt that will never be repaid. Some of the debt was due to the pressure of the recession, it added.

New debt collection systems have been brought in to help prevent the problem from happening again.

An expert at debt management company Gregory Pennington commented: "Council Tax is one of the single largest outgoings for most households, so it can be one of the first things people feel they have to miss when they`re having financial problems.

"But we urge anyone in this situation to seek expert debt advice before the problem can develop into something unmanageable. A debt adviser may be able to help billpayers reduce their costs to make things like Council Tax more manageable, or find a specific debt solution that could help."

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

Can I consolidate my debts with any loan?

Sun, 8 Aug 2010 11:6:36 GMT

You can use almost any loan to consolidate your debts, but going to a debt consolidation company does have its benefits.

Will debt consolidation help with my mortgage?

Sat, 7 Aug 2010 11:1:21 GMT

A debt consolidation loan can help you make more room for your other costs, but it`s not a good idea if you`re really struggling with your money.

Four in five people `changed lifestyle to cut costs`

Fri, 6 Aug 2010 10:35:52 GMT

More than four in five (81%) Brits have taken steps to reduce their outgoings as worries about the economy and personal debt continue, according to Santander.

The banking group`s survey found that over half (55%) of Britons now shop around to get the best deals on groceries, while just over one in four (27%) have switched to a cheaper supermarket.

28% of people have turned to second-hand items from eBay and charity shops instead of buying everything brand new, and 12% have even started growing their own vegetables to save money.

An expert at debt management company Gregory Pennington said: "One positive thing we can take from the economic downturn is that people have started to take much more care of their finances, and this survey highlights many of the ways people are doing this.

"Budgeting well and looking around for the best prices are two of the most effective things people can do to help them afford to repay their debts, and to lessen the risk of debt problems in the future."

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

Credit card debt: good news and bad news

Fri, 6 Aug 2010 10:44:56 GMT

There`s good news and bad news in the credit card market, moneysupermarket.com reports, with interest-free introductory periods lasting longer than ever, but interest rates climbing steadily.

For people carrying credit card debt, both of these factors are important when they`re thinking about transferring that debt to a new card.

So they`ll be pleased to see the average interest-free introductory period (among the top `best buy` balance transfer cards) reach a record 15.4 months. Three years ago, in July 2007, the average length was just 12.8 months, so this is quite an increase.

On the other hand, the top 24 cards now come with an average interest rate of 17.32%, which isn`t such good news.

When it comes to purchase cards, the average interest-free period now stands at an impressive 12.2 months - again, a significant increase on the 10.8 months we saw back in July 2007.

"An interest-free balance transfer card or purchase card can be a great option for people with existing debt who need flexibility, or for those who have a big purchase coming up and need some extra time to pay it off," said Kevin Mountford, head of banking at the comparison site.

According to the latest `Lending to Individuals` figures from the Bank of England, consumers took on an additional £100m of credit card debt in the month of June. This was lower than the average of £200m over the previous six months.

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

Welsh councils `chasing £80m Council Tax debt`

Fri, 6 Aug 2010 10:52:11 GMT

Welsh local authorities are owed £81m in Council Tax arrears, the equivalent of £60 per household, according to WalesOnline.co.uk.

Arrears are at an all-time high. Last year the total came to £78m, and after local government reorganisation in 1996 the total was just £47m.

The body representing councils in Wales said that the collection rate for arrears was "very positive", but added that the recession had made a big impact.

An expert at debt management company Gregory Pennington said: "Council Tax is one of the biggest monthly expenses for a lot of households, so when times are hard it can be one of the things that people tend to struggle with the most.

"But paying Council Tax is a legal requirement, and it`s important that households pay this on time every time, alongside all their other expenses.

"We advise anyone falling behind with their Council Tax payments - or in any other area - to seek expert advice as soon as they can."

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

Indebted graduates face rates of 19% on `interest-free` overdrafts

Thu, 5 Aug 2010 10:3:0 GMT

Students who graduated a year ago - often with serious debts - could face rates of up to 19% on their `interest-free` student overdrafts, The Telegraph reports.

As the article in the Telegraph reads, most graduate accounts offer a three-year interest-free period, but the limit on the overdraft drops on a yearly basis. This can come as an unwelcome surprise to those who have graduated from university with large debts.

Money editor at Which?, James Daley, commented: "Students need to keep a close eye on their bank account when they leave university as the terms, conditions and interest rates are likely to change after they leave university. Most banks give graduates some additional time to pay down their overdraft without paying any interest - but if you`re in any doubt about what the deal is with your bank, it`s well worth picking up the phone and checking."

A spokesperson for debt management company Gregory Pennington commented: "We would advise anyone who is unable to reduce their overdraft by enough before the limit is lowered to seek professional advice on the best way to clear this debt."

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.