Gregory Pennington - debt management company

Cost of mortgage debt payments fell 20% last year

Mon, 1 Feb 2010 11:28:23 GMT

According to the Woolwich, monthly mortgage debt repayments fell by 20% last year - from an average of £607 in December 2008 to £497 in December 2009, the Telegraph reports.

Following reductions in the Bank of England`s base rate, homeowners spent just £157 of every £1,000 of their take-home pay on their mortgage debt in December - £39 lower than a year earlier.

Figures revealed that homeowners in London recorded the largest reduction in the average proportion of their take-home pay that they were using to service their mortgage debt. It fell by 23%, while homeowners in the North East saw the smallest reduction, of just 15.5%.

Head of mortgages at Woolwich, Andy Gray, said: "For the 11 million UK households who have a mortgage there is a silver lining to the recession - a substantial reduction in mortgage payments right when they need it most.

"For them it`s a chance to save in a way they might not have been able to before, or to overpay their mortgage and cut years from its life."

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Gregory Pennington offer 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.

`Spike` in inflation means savers get negative returns

Fri, 29 Jan 2010 11:12:28 GMT

The recent increase in inflation has meant that no variable-rate savings accounts currently offer a real return, according to The Times.

The Bank of England this week announced that inflation rose to 2.9% in December, up from 1.9% in the previous month.

To make a real profit on their savings, higher-rate taxpayers must now find a savings account paying 4.83% gross interest or more to beat inflation and tax, while basic-rate taxpayers need 3.63% - and no variable-rate savings accounts pay interest at this level.

This means that the `purchasing power` of savings - and therefore the protection against debt they can offer - decreases over time.

A spokesperson for debt management company Gregory Pennington said: "It`s true that savings can technically lose value over time when rates are low and inflation is high, but we would still advise people to put money into savings where possible. Even if their savings are shrinking slightly in real terms, they still provide good protection against debt, which is particularly important in the current climate."

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Gregory Pennington offer 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.

Two million pensioners `living in poverty`

Thu, 28 Jan 2010 11:14:6 GMT

New figures released by the Office for National Statistics have shown that two million pensioners are currently living in poverty, according to the Daily Mail.

Half of these are living on their own and are living in `fuel poverty` - they are spending more than 10% of their income on heating and electricity for their home.

Pensioners living on a low income could find themselves at a greater risk of debt in the event of any unexpected costs, a spokesperson for debt management company Gregory Pennington warned.

"Most people experience a significant fall in income when they retire, but for some this can be more serious than others. It depends on how they have saved for retirement, and what costs of living they still have to deal with. Many go into retirement still paying off debt.

"Anyone struggling with debt, regardless of age, should discuss their situation with a debt adviser as soon as the problem starts."

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Gregory Pennington offer 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.

Proposals to help homeowners struggling with mortgage debt

Wed, 27 Jan 2010 11:22:56 GMT

The Financial Services Authority (FSA) is proposing to `clamp down` on the charges mortgage lenders levy on customers who have fallen behind with payments to their mortgage debt, The Independent reports.

The City watchdog is also stressing that lenders `must only consider repossessing a home as a last resort`.

The proposals come after the FSA uncovered - last summer - `problems with the way specialist lenders and third-party administrators` were dealing with homeowners who had fallen behind with their mortgage payments.

Under the proposals, firms will no longer be allowed to:

Apply a monthly arrears charge to borrowers when they have already agreed a debt repayment plan.
Add an early repayment charge to arrears charges, or charge interest on fees.

In addition, any payments that consumers make towards their debt must be allocated to repaying their arrears first - before they are used to cover charges/fees.

The Director of the Small Firms and Contact Division for the FSA, Lesley Titcomb, said: "Today`s proposals underline the standards that firms must meet and will help to ensure that homeowners in financial difficulties are treated fairly.

"Lenders need to be in no doubt of their obligations to customers who fall behind with payments."

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Gregory Pennington offer 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.

UK economy exits recession

Tue, 26 Jan 2010 11:10:55 GMT

Figures from the Office for National Statistics (ONS) have shown that the UK economy exited recession in the fourth quarter of 2009, ending its `worst slump since the 1930s`, the Telegraph reports.

However, the economy expanded by just 0.1%, which was 0.3% lower than economists had expected - which `casts doubt over the strength of a possible recovery this year`.

Jonathan Loynes, an economist at Capital Economics, said: "With household incomes under pressure, credit in short supply and a major fiscal squeeze looming, the path to a full recovery is going to be a long and bumpy one."

A spokesperson for debt management company Gregory Pennington commented: "Despite the news that the UK economy has exited recession, we would advise people to stay focused on improving their personal finances.

"The country`s economy may have started growing, but it could be many months before individuals see the benefit - and although the base rate is currently at an all-time low, it will increase sooner or later, which for many people will add to the cost of servicing debts such as mortgages.

"Anyone struggling with personal debt should look at ways they can address it - seeking professional debt advice could be a good place to start."

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Gregory Pennington offer 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.

Parents concerned their children will fall into debt

Mon, 25 Jan 2010 17:12:37 GMT

According to research conducted by Nationwide (in conjunction with the Personal Finance Education Group (pfeg)), 69% of British parents are worried that their children will fall into debt in the future - compared with 62% in 2008.

The majority of parents who did respond to the survey said that the risk of children falling into debt in later life could be reduced if financial education was introduced from an early age in schools.

Of those questioned, 72% believe that there hasn`t been enough done in the past to teach children about financial matters such as debt.

Nationwide`s head of corporate responsibility, Caroline Hallatt, said: "Our research shows that most people feel there is not enough being done to educate children about finance, and that parents are becoming increasingly concerned. It is important that children of all ages have a good understanding of financial matters so they are equipped to make the best possible decisions about their finances when they leave school."

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Gregory Pennington offer 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.

Beat the recession - learn how to budget effectively

Mon, 18 Jan 2010 16:11:19 GMT

Most of us have been affected in one way or another by the recession - and despite economists` earlier predictions, we`re not out of it yet.

So it`s particularly important that you manage your finances well. An essential part of good financial management is learning to budget - and here`s our guide to putting together a budget of your own.

What is a full and final settlement on my debt?

Mon, 18 Jan 2010 16:35:59 GMT

If you can`t afford to repay your debts as agreed and have fallen behind with the repayments, but you do have a reasonable amount to contribute as a lump sum (e.g. savings or an inheritance), you may be able to offer a `final settlement` to your lenders. This is the offer of a final payment that will settle your debt and stop them from pursuing you any further, as the remaining balance will be written off.

Don`t ignore debt - act on it now

Mon, 18 Jan 2010 16:40:59 GMT

Different people get out of debt at different speeds. For some, getting `back in the black` is something that takes months; for others, it can take years.

There are various factors that could affect this, such as...

How much debt are you carrying?

The biggest single factor here is the amount owed - not as an actual amount, but in relation to the borrower`s disposable income*. Clearly, someone with a well-paid job and no big commitments (mortgage/rent, children, etc.) could probably clear a £1,000 debt faster than someone who works part-time could clear a £500 debt.

What kind of debt are you carrying?

The size of a debt isn`t the only issue - there`s also the question of what kind of debt it is.

A credit card debt, for example, is totally different to a personal loan. A loan is a one-off sum of money which is gradually repaid over a set period of time, while a credit card gives the borrower access to a certain amount of credit which they don`t have to access or pay back in any particular way (although they will be required to pay at least a minimum amount every month).

When it comes to repayments, the credit card debt might sound more appealing since it gives the borrower the opportunity to pay just the minimum every month if they want to. However, this isn`t necessarily a good thing - unless they`re disciplined enough to make more than the minimum payment, even a relatively small credit card debt can take many years to clear (which means it`ll have a long time to accrue interest).

Having said that, someone who`s confident they`ll repay as much as they can every month could choose to borrow on a credit card (rather than a loan) for that very reason - so they can clear their debt as quickly as possible by figuring out the maximum they can afford to pay on a monthly basis.

Could you clear your debt faster than you are doing?

And of course, the way you tackle your debt is another major factor: someone who`s determined to put as much as they can afford towards their debts every month is obviously likely to repay what they owe a lot faster than someone who tries not to think about their debts.

Depending on what you owe, what you earn and what you spend (among other things), there are different ways of clearing your debts faster.

A good way to clear your debt faster is to overpay it (to pay more than you`re obliged to on a monthly basis). Credit card debt isn`t the only kind of debt that allows this - many mortgages, for example, allow the mortgage holder to overpay (in fact, many homeowners have taken advantage of today`s low interest rates to clear their mortgage debt more rapidly than they expected to when they bought their home).

Some people may choose to cut back on luxuries and non-essential spending so they can focus on overpaying their debt until it has been paid off entirely.

If you`re not sure how to clear your debt, or if you`d just like some advice, it`s a good idea to talk to a professional debt adviser, who can assess your situation and recommend an appropriate way out of debt.

The sooner the better

But however you choose to tackle your debt, the sooner you start really focusing on it, the better. There are various reasons for this - such as...

First of all, the sooner you start really tackling your debts, the sooner you`ll finish.
Second, the sooner you`re out of debt, the sooner you`ll stop paying interest - which means you`ll pay less in total.
Third, carrying debt can be dangerous. No-one`s financial situation is set in stone. If you lost your job tomorrow, would you be able to keep on making your debt payments - or would your debts rapidly get out of control?

* Disposable income equals total income minus total essential expenditure - it`s the amount of money an individual has left after they`ve taken all their essential costs into account. Disposable income is the money which is available for putting towards unsecured debts, saving, and spending on non-essential goods and services.

4.5 million Brits plan to transfer credit card debt in the New Year

Thu, 14 Jan 2010 15:31:6 GMT

According to research by Santander Cards, more than 4.5 million Britons are planning to transfer over £3.2bn of debt between credit cards in the first three months of 2010, myintroducer.com reports.

It is thought that people will be looking to move their balances `to take advantage of introductory balance transfer periods`.

The number of Britons looking to transfer credit card debt has increased by a third compared with the same time a year ago.

Director at Santander Cards, Emma Roberts, said: "The number of people transferring balances has risen year on year, whilst the amount being transferred has fallen dramatically; this is a clear sign that consumers are becoming savvier when it comes to managing their finances."

A spokesperson for debt management company Gregory Pennington commented: "It is important to bear in mind that transferring credit card debt to a card with a lower interest rate will not actually reduce an individual`s debt. It may help them manage their debt in the short term, but card holders should make sure they think about how they`ll actually clear their debt."

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Gregory Pennington offer 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.

New Year debt enquiries `set to surge`

Fri, 8 Jan 2010 16:21:22 GMT

Enquiries about help with debt problems are likely to surge in the New Year, according to an expert.

Richard Napier, Nationwide`s head of credit cards and personal loans, added that people would deal with debts built up over the festive period in different ways.

He said: "For some, this will simply mean tightening their belts for a while and cutting back on a few luxuries. But for those already in debt, the New Year can signal greater money worries."

A spokesperson for debt management company Gregory Pennington said that anyone struggling with debt in the New Year should contact a debt adviser at the earliest opportunity.

"Aside from providing debt advice, an adviser may be able to recommend a specific debt solution that could help - so whatever the situation, it`s well worth talking to a debt adviser."

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Gregory Pennington offer 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.

Consumers continue to pay down unsecured debt

Thu, 7 Jan 2010 15:57:59 GMT

Figures released by the Bank of England (BoE) have shown that in November, consumers repaid £376m of unsecured debt - £215m less than the total repaid in October, but almost double the six-month average, the Guardian reports.

Meanwhile, the Building Societies Association (BSA) said that its members had seen the value of savings accounts fall by £600m in November - suggesting that some of the money being used to repay unsecured debts is coming from savings accounts.

Chief UK and Eurozone Economist and Managing Director of Western European Forecasting and Analysis at IHS Global Insight, Howard Archer, said: "The fifth successive net repayment in consumer credit in November is clearly the consequence of many consumers` desire to reduce their debt, low demand for credit, and a lack of availability of unsecured credit from banks.

"It is yet another example of consumers looking to improve their financial situations in the current difficult and worrying economic environment."

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Gregory Pennington offer 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.

Compulsory debt lessons to be introduced

Tue, 5 Jan 2010 11:29:7 GMT

As part of a range of new measures for primary schools, children as young as five will be given compulsory lessons on money, savings and debt from next year, the Telegraph reports.

Children aged seven to 11 could learn about different bank accounts, and how to budget effectively, while children aged 11 to 14 could be given lessons on credit cards, mortgage debts and loans, and 14-16-year-olds could receive lessons about debt and about how being in debt can affect people.

Martin Lewis, creator of MoneySavingExpert.com, said: "Finally we`re getting somewhere. We encourage our youth into debt when they go to university, but the disgrace is we`ve never educated them about debt."

In addition, the Secretary of State for Children, Schools and Families, Ed Balls, is expected to announce a `£50m fund for schools to intervene with extra lessons if six or seven-year-olds fall behind with basic Maths or English`.

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Gregory Pennington offer 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 struggle to find work

Thu, 31 Dec 2009 11:26:34 GMT

According to figures obtained by the Liberal Democrats, unemployment in the recession is rising fastest among 18-24-year-olds who have degrees, the Guardian reports.

The data shows that in the three-month period running up to September, one in five 18-24-year-olds who were unemployed had a degree.

The Guardian reports that `the figures raise fresh concerns about the plight of the "generation crunch", the most indebted generation of students in history who graduated into the recession this year.`

The Liberal Democrat universities spokesman, Stephen Williams, said: "The same graduates that have been saddled with record levels of debt are now bearing the brunt of the recession."

Wes Streeting, the President of the National Union of Students (NUS), added: "These startling figures show that much more needs to be done to support unemployed young people, particularly graduates."

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Gregory Pennington offer 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.

Many mortgage holders `£200 a month better off`

Tue, 29 Dec 2009 11:23:24 GMT

According to the Bank of England, a quarter of UK homeowners are at least £200 a month better off than this time a year ago, the Telegraph reports.

A survey of 2,000 households found that almost half of all people who make payments towards a mortgage debt have seen their monthly payments fall by more than £100 over the last year, with around a quarter seeing more than £200 knocked off their payments.

The Bank believes the `cushion provided for homeowners against the effects of recession, rising unemployment and the fall in house prices` has helped some householders cope with their debt problems.

However, the Bank `does not minimise` the damage caused by the recession and the credit crisis. Over one in four households with a `non-manual` worker have seen their income drop by more than £100 to an average of £3,981 after covering some of their expenses, such as tax, housing costs, loan repayments and debts.

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Gregory Pennington offer 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.

Three in four parents risk debt to entertain kids at Christmas

Mon, 28 Dec 2009 11:18:56 GMT

According to research by the internet bank Egg, three in four parents admit they spend more than they can afford - risking getting into debt - to keep their children entertained over the festive period, headlinemoney.co.uk reports.

The research, which involved an online poll of 2,001 British adults, found that the average family is set to spend around £40 a day over the school holidays in an attempt to keep their kids occupied. This will amount to almost £540 over the two-week break.

Spokesperson for Egg, Vanessa Wood, said: "Christmas is the most expensive time of the year for a lot of families - but being smart about how you spend money can really help spread the cost of Christmas."

A debt management expert for Gregory Pennington added: "It is important that anyone thinking of taking on debt over Christmas is certain they will be able to repay it.

"Recent research has found that 4.7m people are still repaying the debt that they took on last Christmas - which highlights the risks of taking on debt over the festive period."

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Gregory Pennington offer 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.

Families at risk of `winter debt`

Fri, 25 Dec 2009 11:8:37 GMT

Research by children`s charity Save the Children has suggested that families will fall into debt this winter to afford things like clothing, food and bills, the BBC reports.

A survey of 1,006 parents with a net household income of less than £30,000 per year found that the majority of parents in that category are `going to struggle to manage this winter`.

More than half (52%) of those questioned admitted that this winter, they would take on high-interest debt to cover costs.

27% of families on low incomes stated that they would have to take on debt to pay their fuel bills, 22% said they would have to take on debt in order to buy winter clothes such as warm coats and shoes, and 21% said they would have to take on debt to afford essentials such as food.

Fergus Drake, UK Director at Save the Children, said: "It is shocking that so many families have to borrow money to pay for essentials such as heating and food, with many parents forced to cut back on Christmas presents as well as winter clothes. Families cannot continue to scrape by like this."

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Gregory Pennington offer 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.

Families use `biggest savings ever` to repay debt

Thu, 24 Dec 2009 11:29:38 GMT

According to figures from the Office for National Statistics (ONS), families are setting aside the `biggest amount of savings ever` in an attempt to reduce their debt, the Telegraph reports.

The figures show that the average household saved almost £300 a month in the three-month period running up to September - the largest amount in any quarter in British economic history.

The ONS states that families managed to save 8.6p of every pound of disposable income they earned in the third three-month period of the year.

And although the figures don`t say exactly where the money is being used, it is thought that `the majority represented families paying off debts or selling off assets such as houses in order to improve their finances`.

Ben Read, a managing economist at the Centre for Economics and Business Research (CEBR), said: "We are seeing people paying down their debt, which effectively means saving more than they are spending."

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Gregory Pennington offer 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 debts: confusion over repayment order

Fri, 18 Dec 2009 15:5:9 GMT

According to research by Nationwide Building Society, almost two thirds (63%) of credit card users still don`t understand the order in which their credit card debts are repaid, headlinemoney.co.uk reports.

Despite various measures taken to make the order of payments `more transparent` (such as a summary box, which provides `key product information`, including the order in which debt repayments are made), 18% of credit card customers think that the `longest outstanding debt is paid off first`, 8% believe the debts with the highest interest are paid off first, while 4% assume that the most recent debts are paid off first.

A full 67% of credit card holders believe that the Government should introduce measures to make credit card providers pay off a borrower`s most expensive debt first.

Commenting on the news, a spokesperson for Gregory Pennington said that "borrowers who are uncertain about any aspect of their debt should contact their lender to clear up the issue without delay".

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Gregory Pennington offer 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.

UK citizens failing to save and risking debt

Fri, 11 Dec 2009 16:58:49 GMT

UK households are not focusing on long-term savings, according to official statistics, potentially putting them at risk of debt in later life.

Just 40% of men and 32% of women were putting money into private pensions, the research found.

The Office for National Statistics (ONS) also found that almost 80% of households had built up non-mortgage debt averaging £7,200.

A spokesperson for debt management company Gregory Pennington said: "Saving for a pension is very important for the future, as the state pension allowance will only give retirees a relatively small income. Many retired people could even find themselves getting into debt because their income does not cover their costs.

"Today, some people may find their existing debts are preventing them from saving into a pension fund, in which case they should contact a debt adviser to discuss their options."

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Gregory Pennington offer 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.