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Despite the fact that net mortgage lending was 4.1% higher than a year earlier, during the month, the total number of home loans approved for house purchase dropped to 34,813.

The figures reveal that at the same time, people continued to repay more unsecured debt than they took on - showing that "consumers` safety-first approach" to unsecured debt has carried on throughout the year, as the BBC puts it.

In total, over the past year, repayment of consumer credit has outstripped new borrowing by 2.7%.

The amount of debt taken on using credit cards increased by £120m in June, while repayments of personal loans and overdrafts outstripped new borrowing by £314m.]]> /debt-management-news/3234/Mortgage-lending-falls-while-unsecured-debt-is-repaid.htm Tue, 27 Jul 2010 14:29:10 GMT
The figures show that 1.1 million electricity customers, along with 800,000 gas customers, are `officially` repaying a debt. The number of customers entering into new debt repayment arrangements with their providers rose by 19% for electricity and 18% for gas.

The average level of debt being repaid has increased from £256 to £277 for electricity, and from £209 to £287 for gas.

The figures, however, do not include customers who are not on debt repayment arrangements.

Separate research by uSwitch.com has found that 5.5 million (21% of) households in the UK are in debt to their providers, and the average debt on bills now stands at £132. This is 5% higher than the £126 seen in 2009 and 16% more than the £114 seen in 2008.]]> /debt-management-news/3232/Energy-debt-statistics-raise-concerns.htm Mon, 26 Jul 2010 12:4:24 GMT
The average British household currently spends £18,502.86 a year on bills and other essential costs, up from £17,860.74 last year.

Car insurance, rent/mortgage costs and mobile phone bills have seen the biggest increases in that time, the report adds.

A debt expert at Gregory Pennington said: "Some people might think that a household spending £18,500 a year like this is probably quite comfortable financially, but it still stands that living costs are on the rise, and people who are already struggling are likely to be hit the hardest by this.

"We urge anyone struggling with their costs of living - especially if they are in debt - to get expert advice on how to improve their situation as soon as they can."]]> /debt-management-news/3230/Rising-cost-of-living-puts-pressure-on-people-in-debt.htm Fri, 23 Jul 2010 9:19:46 GMT
Kevin Mountford, head of banking at moneysupermarket.com, said: "The decision to borrow should never be taken lightly and consumers need to be careful that they don`t fall into a debt trap - they should never spend more on their card than they can afford to pay back. However, used responsibly, a credit card can be safe and a convenient way to pay for large transactions such as holidays and, provided they choose the right product could even generate some rewards to enjoy abroad."

A debt management expert for Gregory Pennington added: "Credit cards can offer protection for consumers booking their holidays should something go wrong. However, individuals should only take on debt using their credit card if they`re sure they can afford to repay it."]]> /debt-management-news/3229/Britons-taking-on-debt-to-pay-for-holiday.htm Wed, 21 Jul 2010 15:22:27 GMT
The proposed changes aim to make sure all lenders `get back to the basics of responsible lending` and that any problems are stopped before they can develop or spiral out of control, leaving homeowners with a debt they can`t repay.

The proposals outlined by the FSA include:

• Checking a borrower`s income in every case to prevent over-inflation of income and to prevent mortgage fraud.
• Added protection for `vulnerable` customers with a poor credit history.
• Inclusion of affordability tests for all mortgages, and making sure lenders are ultimately responsible for assessing a borrower`s ability to repay the debt.

The proposals form part of a review by the FSA into the UK mortgage market and are based on findings from analysis of past lending decisions - looking at the causes of arrears and repossessions since 2005.

Here are some of the findings of the analysis:

• Almost 50% of all new mortgages taken out between 2007 and the first quarter of 2010 were provided without the borrower having to verify their income.
• Almost half (46%) of households had either no money left or a shortfall, after covering the cost of their living expenses and mortgage debt.

]]> /debt-management-news/3226/New-proposals-to-ensure-people-can-afford-mortgage-debts.htm Tue, 20 Jul 2010 12:10:13 GMT
The article runs through several figures regarding the `3Ds`, highlighting how easy it is for families to find themselves in financial trouble if something major happens. For example:

• The average household debt (including credit cards and other unsecured debts - but not mortgage debt) has now reached £8,716. If the average was only based on households with some form of unsecured loan, this figure would rise to £18,159.
• In 2008, 136,026 divorces were granted.
• The average cost of a funeral in the UK is £2,800 (expected to reach £4,100 by 2015).

The paper then goes on to offer some advice about debt, and stresses that `prevention is key`.

`Budgeting is the tried and tested way of keeping on top of your outgoings,` the article continues, `but be realistic about how much you need for essential items, and cut down on non-essential expenses.`]]> /debt-management-news/3227/debt-divorce-and-death-strain-family-finances Tue, 20 Jul 2010 17:12:49 GMT
In its Credit Conditions Survey for the second quarter of the year (Q2), the Bank said that banks and building societies expect to lend less this quarter (Q3).

11.4% of banks said they expect to lend less due to tightening in the wholesale lending markets.

An expert at debt management company Gregory Pennington said: "A shortage of credit in the future could cause real problems for people who need it most.

"In particular, homeowners who are unable to remortgage may have to start paying their lender`s standard variable rate [SVR], which could be difficult to keep up with if interest rates rise."

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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-management-news/3223/bank-of-england-second-credit-crisis-on-the-way.htm Sat, 17 Jul 2010 11:57:25 GMT
Head of loans and debt at moneysupermarket.com, Mr Moss stressed the need for people to take the time to manage their finances and think about cutting back on their monthly spending.

"Many people are being pushed to breaking point by the spiraling cost of living and the ongoing effects of the credit crunch but, as our research shows, people do need to be aware of their own financial circumstances and not bury their heads in the sand," he said.

"Consumers should ask themselves if they really need a new car, the latest Sky package or those new shoes."

He made the comments in relation to research by the comparison site, which found that many Britons have a worryingly lax attitude to debt.

For example, it found that 66% of Britons wouldn`t even be concerned if their debts were so high that they couldn`t afford their gas and electricity bills - while 57% `would not suffer from sleepless nights` if they missed a payment to their rent or mortgage. And just 15% said they`d be worried if they missed two or more credit card or loan repayments, `despite the dire consequences of doing so`.

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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-management-news/3219/era-of-debt-financed-consumer-spending-is-over.htm Fri, 16 Jul 2010 11:11:39 GMT
Ten million holidaymakers will use credit cards, travel agent payment plans or loans from friends and family to pay for their break.

Of these, more than half (58%) do not have the money to repay their lenders straight away. Protection specialist Bright Grey says this could add over £100 to their holiday costs for each month it takes to repay the balance if they`ve used their credit cards.

An expert at debt management company Gregory Pennington commented: "A lot of people use credit to pay for holidays, and there`s nothing necessarily wrong with this - as long as they know how and when they`re going to repay the debt.

"But we`d advise holidaymakers to avoid getting into debt if they have any doubts. Interest will build up on most kinds of debt, and the sooner it`s repaid the less likely they are to get into trouble."

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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-management-news/3220/over-ten million-people-get-into-debt-to-fund-holiday.htm Fri, 16 Jul 2010 11:16:33 GMT
As the BBC reports, the Insolvency Service has published figures showing how many people entered personal insolvency (bankruptcy, an IVA (Individual Voluntary Arrangement) or a DRO (Debt Relief Order)) in different regions last year.

The figures were highest in the North East of England, where 38.1 people per 10,000 adults were declared insolvent in 2009. The lowest rate was in London, where 19.6 adults per 10,000 did this. Across England and Wales, the average was 31.1 per 10,000.

The reasons for the differences? Steven Law, President of insolvency trade body R3 said: "Prior to the recession, the North East had a higher than average unemployment rate and the region`s construction industry was badly hit during the economic downturn so it is understandable that personal insolvencies are more common there."

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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-management-news/3222/differences-in-debt-insolvency-figures-per-region.htm Fri, 16 Jul 2010 11:45:28 GMT
13% of over 55s are retiring in debt, and 40% of this age group are using equity release as a means of repaying these - leaving them better off in real terms and able to enjoy a better quality of life in retirement.

Andrew Goodsell, Executive Chairman, Saga Group, said: "This study dispels the concept that equity release is the last resort for those who have nowhere else to turn. We have found that people are increasingly likely to use equity release to clear debts, enabling them a better quality of life in retirement."

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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-management-news/3218/Debts-preventing-people-from-enjoying-retirement.htm Thu, 1 Jul 2010 16:23:48 GMT
According to the unions, `harsh action` is not needed to bring the budget deficit and national debt under control.

However, deputy Prime Minister Nick Clegg has said cuts were needed as the overall economic situation in Europe has become a lot worse over the past few months.

He said that the `mountain of debt` left after the recession `needed to be dealt with`.

"Without action on the deficit, we will carry on racking up unaffordable debts our children will have to pay off," he continued.

Meanwhile, the Chancellor, George Osborne, has said the Budget will `lay out "tough" but necessary plans to bring down borrowing` over the next four years.

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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-management-news/3214/national-debt-Osborne-warned-against-senseless-cuts.htm Tue, 22 Jun 2010 11:33:25 GMT
A further 13% have considered going to such lenders, the report adds.

R3 has identified a group of 961,000 individuals who describe themselves as `struggling with debt, but have not sought help`.

An expert at debt management company Gregory Pennington said: "There`s a big difference between doorstep lenders and loan sharks - loan sharks should be avoided at all costs.

"When it comes to doorstep lending, it`s a different story. This is an expensive form of credit, but many people have no access to other ways of borrowing. If it`s a one-off, short-term loan and the borrower is sure they can repay it on time, this may be the best option that`s open to them.

"However, anyone thinking about borrowing money in this way needs to consider why they`re in a position where it`s their only option. They should sit down, look at their finances, and consider contacting an expert debt adviser to discuss ways of tackling their problems."

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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-management-news/3212/nearly-70000-take-on-debt-from-loan-sharks-or-doorstep-lenders.htm Fri, 18 Jun 2010 16:7:6 GMT
Meanwhile, the figures also reveal that Brits are now taking on 37p of debt for every pound they are saving. This is very different from what we saw during 2008 - when Brits were paying back £1.67 of their debts for every pound they saved.

Unbiased.co.uk`s Savings Brake research shows the ratio of how much debt (unsecured debt and equity release - but not mortgages) people are taking on, in contrast with how much people are putting away.

And although debt levels are a lot higher than they were in mid-2008, statistics show that they have dropped since the end of 2009. Overall, Brits are now borrowing just over £6bn per quarter, which is £8bn lower than the amount they were borrowing at the end of last year.

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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-management-news/3209/Amount-of-debt-taken-on-and-amount-saved-both-fall.htm Wed, 9 Jun 2010 15:45:11 GMT
The supermarket bank has claimed that in total, `just under 4,400 personal loans with an average value of around £8,500 were taken out for these reasons`.

The bank estimates that £12.25m of debt (1,100 loans) was taken on to help cover the cost of school fees, while £13.56m of debt (1,900 loans) was taken on for university and college costs. A further £11.26m of debt (1,400 loans) was taken on for `other education`.

Head of Loans at Sainsbury`s Finance, Steven Baillie, said: "The cost of education has been rising. School fees rose by 5.9% in 2009, and the education component of the Consumer Price Index increased by 5% in the 12 months to February 2010. These rises can be hard to bear in difficult economic times, so it is not surprising to see many people taking out personal loans to help with this cost.

"Parents and anyone paying for education, such as professional qualifications, need to make sure they are shopping around for the best loan rate available and not simply turning to their current account provider."

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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-management-news/3206/More-debt-being-taken-on-for-education.htm Tue, 8 Jun 2010 15:40:5 GMT
Figures from Moneysupermarket.com have shown that there are currently 3,100 different mortgage deals on the market, which is 42% higher than the number available when the market fell to its low point last July.

Yet despite the positive figures, there`s still a lot less choice than before the credit crunch - there were 28,413 different mortgage deals on the market in June 2007.

A spokesperson for debt management company Gregory Pennington commented: "It is encouraging to see that the number of mortgages on offer has reached its highest level for 15 months.

"However, a mortgage debt is a serious matter and people should always think very carefully before they take it on.

"Borrowers securing debt against a property should be certain that they`ll be able to afford their repayments before taking on the 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.]]> /debt-management-news/3205/more-than-3000-mortgages-on-offer-for-first-time-in-15-months.htm Mon, 7 Jun 2010 15:27:59 GMT
For the first time since November, repayments outstripped new borrowing, with consumers repaying £0.1bn more consumer credit than they borrowed.

The figures revealed that net secured lending increased by £0.5bn, meaning that total net lending to individuals rose by £0.4bn.

A debt management expert at Gregory Pennington commented: "It`s encouraging to see that debt repayments have outstripped new lending as consumers appear determined to pay down their unsecured debts.

"We hope this trend will continue, but advise anyone who is struggling to repay their debts 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.]]> /debt-management-news/3202/aprils-consumer-debt-figures.htm Fri, 4 Jun 2010 15:56:28 GMT
The price comparison site also found that a further 2.5 million withdraw cash using their credit cards, potentially incurring combined charges of up to £90 million a year.

An expert at debt management company Gregory Pennington said that people should be very careful about using credit cards for things like bills.

"Ideally, we should all make sure we have enough money for bills at the start of the month and set that money aside. The fact that so many people are using credit cards suggests either that they aren`t doing this, or that they don`t have enough money to pay their bills.

"If this is the case, it`s important that the billpayer seeks debt advice as soon as they can, especially if their debt is growing."

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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-management-news/3199/nearly-5-million-getting-into-debt-to-pay-bills.htm Fri, 28 May 2010 16:19:14 GMT
Both Asda and Morrisons have cut their prices, and it`s likely that others will follow suit.

Earlier this week, Petrolprices.com said the average price of a litre of unleaded petrol was 120.2p, although this average has fallen since then.

An expert at debt management company Gregory Pennington said: "Any drop in fuel prices will be welcomed by consumers, and not least by those struggling with debt.

"Falling petrol prices alone won`t solve people`s debt problems, but it`s one thing that should make a difference. We would still advise any struggling borrowers to seek expert debt 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.]]> /debt-management-news/3197/Falling-petrol-prices-ease-the-pressure-on-motorists.htm Thu, 27 May 2010 16:12:0 GMT
This would, however, also lead to a rise in many students` debt levels, a debt expert at Gregory Pennington commented.

The 1994 Group said that fees for the poorest students should be subsidised, suggesting that those from middle-class backgrounds should be charged more. The Group also believes that universities should be able to charge more for the `most expensive or sought-after` degree courses - leading to an increase in the amount of debt a student would be required to take on to afford courses such as medicine or law.

1994 Group chairman and vice-chancellor of Lancaster University, Professor Paul Wellings, said: "Quality can only be maintained by a combination of increasing both institutional autonomy and funding. If the aim is to enhance quality, then a staged increase in the fee level above the baseline would be needed."

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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-management-news/3196/Call-for-rise-in-tuition-fees-could-lead-to-more-student-debt.htm Mon, 24 May 2010 16:7:27 GMT