Gregory Pennington - debt management company Debt Management help and advice from Gregory Pennington http://www.gregorypennington.com Most people 'underestimate future debts' Many people significantly underestimate just how much big life events are likely to cost them, according to new research by HSBC.

The research looked into six key life events: buying a first car, getting married, putting down a house deposit, paying off university debt, raising a first child and sending a child to university. It found that the average cost of all this comes to more than £310,000, but the average estimate stood at only £178,140.

One of the most underestimated costs was raising a first child: on average people thought this would cost around £73,000, but the actual average cost is more than double that (£165,648).

Repaying university debt, meanwhile, comes to an average of £43,500, compared with the average expected cost of only £9,541. And the average wedding costs £20,273, compared with the expected cost of £8,365.

But some costs were actually overestimated: a typical first car costs £1,450, compared with an expected £4,835, while the average first house deposit costs £27,032 compared with the expected cost of just under £40,000.

Bruno Genovese, Head of Savings at HSBC, commented: "Life's big events can require a substantial financial outlay and many of those who are yet to go through them are vastly underestimating the costs involved, particularly in light of the hikes to university fees and high inflation. Unless people are fully aware of the budgets that are needed and start saving and planning their finances early, some may have to delay these milestones."

An expert at debt management company Gregory Pennington said: "It can be difficult to tell how much big life events are likely to cost, but nonetheless it could pay to start saving early to help minimise the impact on your finances.

"Having a good amount of savings put aside can make these big costs a lot easier to deal with, and reduce the amount of debt people may be tempted to take on."

]]> http://www.gregorypennington.co.uk/debt-management/news/most-people-underestimate-future-debts-0-3855-0.htm Thu, 17 May 2012 10:58:29 GMT Can a debt management plan stop debt recovery letters? If you take part in a professional debt management plan, it may be able to stop letters and phone calls from your lenders.

]]> http://www.gregorypennington.co.uk/debt-management/guides/can-a-debt-management-plan-stop-debt-recovery-letters-0-3856-0.htm Thu, 17 May 2012 14:13:3 GMT Debt Management Plan or Debt Relief Order? http://www.gregorypennington.co.uk/debt-management/guides/debt-management-plan-or-debt-relief-order-0-3854-0.htm Tue, 15 May 2012 11:15:31 GMT Four in ten couples 'can't afford to start a family'
901 of the couples asked said they'd been delaying having children for over two years. Many believe that they will also have to wait at least another two years until they have enough money to put their plans into action. Two thirds of these people are 'devastated' that financial instability has ruined their plans to start a family.

The couples cited different financial concerns for postponing parenthood. Many of them are waiting until they can buy a house (47%) or ensure that they have enough job security (22%).

Other concerns include the rising cost of petrol, utilities and food. Some of the couples wanted to get married before they started a family (22%) and others wanted to feel a bit more self-sufficient (14%). Some wanted to pay off their debts first or finish their education.

20% said that they wanted a certain amount of money in the bank before they would consider having children. Many said they'd need at least £4,867.

It's not just childless couples who are delaying plans to expand their family. 1,758 people who already have children were surveyed, and 70% of them said they were delaying (or rethinking) adding more children to their family. 32% of these people said they wouldn't be able to afford the additional childcare costs, and 30% didn't have enough money for maternity leave.

An expert from debt management company Gregory Pennington said: "It's no surprise that people want to feel financially stable before they consider making their family bigger. Whether you want a place to raise your children, a stable job, the right amount of savings, or to clear your debts - it's important to focus on these goals so you can make some real progress.

"Make a family budget, see how much you spend each month and whether you can cut back in some areas, so you can put as much towards your goals as you realistically can.

"If you need to clear your debts before you start saving for a family, getting some professional debt advice could help you figure out the best way of doing that."

]]> http://www.gregorypennington.co.uk/debt-management/news/four-in-ten-couples-cant-afford-to-start-a-family-0-3853-0.htm Mon, 14 May 2012 10:26:34 GMT Debt management or debt consolidation - which is faster? http://www.gregorypennington.co.uk/debt-management/guides/debt-management-or-debt-consolidation-which-is-faster-0-3852-0.htm Fri, 11 May 2012 10:34:25 GMT CML: Fewer homeowners experiencing problems with debt
There were 9,600 repossessions in the first three months of 2012 - roughly the same number as a year earlier. However, the number of households with significant mortgage arrears fell from 170,500 to 157,800 over the same period.

The CML defines significant arrears as 2.5% or more of the outstanding mortgage balance, meaning there could in fact be many more homeowners with smaller arrears.

Paul Smee, CML director general, comments: "Combined efforts by borrowers, lenders and money advisers are ensuring that payment difficulties are being managed effectively, with the result that the number of repossessions remains relatively low. Repossession really is a last resort, as the numbers show. Anyone worried about their mortgage should be assured that lenders will try to help them get back on track, as long as this is a realistic prospect."

As a result of the latest findings, the CML says it may now revise down its forecast for 45,000 repossessions in 2012. However, it added that "continuing pressures on household finances, changes to welfare benefits, and an upward drift in mortgage rates all have the potential to disrupt the current stable picture".

An expert at debt management company Gregory Pennington said: "Despite the fall in mortgage arrears, there are still many people out there who are struggling, and we urge them to get help before the problem gets any more serious. With early action, repossession can very often be avoided."

]]> http://www.gregorypennington.co.uk/debt-management/news/cml-fewer-homeowners-experiencing-problems-with-debt-0-3851-0.htm Thu, 10 May 2012 10:50:58 GMT Is debt management right for me? http://www.gregorypennington.co.uk/debt-management/guides/is-debt-management-right-for-me-0-3850-0.htm Wed, 9 May 2012 12:56:30 GMT Pay rises fail to keep up with inflation
The report covers the first three months of the year. It examines the pay awards given to around 450,500 employees by 114 different companies. The Daily Mail tells us more.

A large majority of workers in the private sector (which makes up about 80% of Britain's workforce) received a pay rise which failed to keep up with inflation. The average pay rise between January and March 2012 was 3%, while inflation was at 3.5%.

8% of workers saw their pay frozen. These were typically people working in the construction, manufacturing and not-for-profit sectors.

Low pay rises (an average of 2.9% in April) are causing problems for millions of families who are struggling to keep up with rises in energy, food and petrol prices. According to the British Retail Consortium, the cost of food alone has risen by 4.3% over the last year.

An expert from debt management company Gregory Pennington said: "Large numbers of people are struggling to keep up with their day-to-day costs, such as the weekly shop, filling up the car and paying bills. The added factor of low pay rises can mean that families are pushed into debt.

"If you are struggling, there are steps you can take. Revise your budget and see if you can cut back on spending in some areas - such as nights out or takeaway meals. Take your bills one at a time and see if you could get a better deal with another supplier.

"If you feel like your debts are getting out of hand, it's always best to seek professional advice."

]]> http://www.gregorypennington.co.uk/debt-management/news/pay-rises-fail-to-keep-up-with-inflation-0-3848-0.htm Tue, 8 May 2012 10:50:47 GMT Can I set up a debt management plan if I am unemployed? http://www.gregorypennington.co.uk/debt-management/guides/can-i-set-up-a-debt-management-plan-if-i-am-unemployed-0-3849-0.htm Tue, 8 May 2012 15:0:43 GMT Lender forbearance 'doesn't always help people in debt'
That's why the Government called for 'lender forbearance' - in other words, lenience when it comes to reclaiming debt from struggling borrowers. It's thought that the relatively low number of bankruptcies in recent years is partly due to this lenience towards the most vulnerable homeowners.

But could too much forbearance be a bad thing? That's the view of Teresa Pritchard, director of policy and advocacy at Citizens Advice, talking to Credit Today. She believes that in some cases, it means people with no realistic prospect of repaying their debts simply delay getting the help they need.

She said: "Successive governments have put pressure on lenders to put off foreclosure. Too many people have got forbearance and I'm beginning to become concerned.

"Perhaps they're not having constructive advice, as is forbearance the best the best option when the there’s no prospect of the debtor paying up?"

Perchard will speak at Credit Today's consumer credit debate on lenders and forbearance, as well as how credit providers should have a more consistent approach to dealing with struggling borrowers.

]]> http://www.gregorypennington.co.uk/debt-management/news/lender-forbearance-doesnt-always-help-people-in-debt-0-3847-0.htm Thu, 3 May 2012 10:17:25 GMT What can I expect from a debt management plan? http://www.gregorypennington.co.uk/debt-management/guides/what-can-i-expect-from-a-debt-management-plan-0-3846-0.htm Tue, 1 May 2012 16:52:40 GMT Filling your spare time is 'most expensive in over a decade'
Ten out of eleven leisure activities covered in the report have increased more quickly than consumer price inflation over the last 10 years (29%). This could be bad news for family finances, because many are more squeezed than ever.

The research shows how much prices have changed over the past ten years. Football tickets top the table, as they have increased in price by 184% in ten years.

Next on the list is car fuel. Filling up a 70 litre tank cost £51.31 in 2002 and now costs £96.95. That's an 89% rise over ten years. Taking the train would cost you an average of £23.38 for an adult ticket, which is a 61% rise from 2002 (£14.55). These costs can really limit where a family can spend their spare time.

Going out for a meal has risen 42% from 2002 - on average it now costs £20 per person. Buying a pint of beer to accompany your meal has risen 51% since 2002. To buy five pints per month now costs £15.18, compared with £10.08 in 2002. If you'd rather stay in with a takeaway and watch some TV, these costs have risen by 36% and 39% respectively.

Other activities on the list include going to the cinema (up from £4.29 to £6.24 - a 46% increase), a day at a theme park (up from £27.20 to £39.64 for an adult ticket - a 46% increase), and a gym membership, which has risen 48% since 2002. The lowest price increase on the list is gardening, with only a 17% increase since 2002.

An expert from Gregory Pennington commented: "With costs rising, it can be really difficult to have fun with the family on a budget. This means that many people are cutting back on leisure activities.

"If your disposable income is being squeezed, there are some fun things you can do for free - or more cheaply than usual. Spend a day at the park with a picnic, go for a bike ride or walk, or look online for vouchers that can give you great discounts on activities in your area.

"If you find yourself really struggling with money, or you cannot afford leisure activities because you're in debt, contact a professional for some advice. They can help you draw up a budget, or recommend a debt solution that's right for your circumstances."

]]> http://www.gregorypennington.co.uk/debt-management/news/filling-your-spare-time-is-most-expensive-in-over-a-decade-0-3845-0.htm Mon, 30 Apr 2012 10:53:45 GMT Why work with a debt management company? http://www.gregorypennington.co.uk/debt-management/guides/why-work-with-a-debt-management-company-0-3843-0.htm Thu, 26 Apr 2012 9:30:1 GMT Brits 'taking careful approach towards debt'
The BBA said that demand for both unsecured credit (such as personal loans and credit cards) and mortgages remained weak in March. And although credit card borrowing increased slightly, people repaid even more.

BBA statistics director, David Dooks, said: "The high street banks are currently providing nearly £1.5 trillion of credit to UK businesses and households and they continue to lend. However, in response to the economic climate, larger companies are raising funds from bonds and SMEs are paying back more than the new borrowing they are taking. Deposits held on accounts are also higher than loans outstanding.

"All of this means that, while banks have funds to lend, demand for business credit is low. The high street banks are also helping individual customers by providing £768 billion for house purchase and £82 billion in unsecured credit - although, as with business, demand is low and people are repaying their borrowing where possible."

An expert at debt management company Gregory Pennington commented: "It's good to see that people are taking debt seriously. In the current climate it's a good idea to think very carefully about any money you borrow, and these figures suggest that's what most of us are doing.

"Of course, an affordable debt could become unaffordable very quickly if your circumstances change, and a lot of people find themselves unexpectedly struggling. Anyone in that position should not hesitate to seek expert debt advice."

]]> http://www.gregorypennington.co.uk/debt-management/news/brits-taking-careful-approach-towards-debt-0-3844-0.htm Thu, 26 Apr 2012 11:44:55 GMT Average consumer has '£113 less per year to spend on non-essentials.'
The research attributes this to a number of factors. For example, growth in incomes has slowed to 2.4% in March compared to 3.0% in February. This is its weakest rate in over a year, and is under the rate of inflation.

On top of this, essential spending has risen by 6.2% in the year leading up to March. Nearly three quarters of consumers (73%) have said that they've noticed a rise in the cost of essentials and everyday spending.

Many people have reported seeing an increase in how much they spend on gas/electricity (67% of people have noticed an increase), water (45% have noticed) and household groceries (57% have noticed). Increasing fuel prices were also a concern among consumers, with 70% saying it was a worry. This is up 4% from October 2011.

Interestingly, consumer spending on debt repayments has grown by 1.3% in the year leading up to March.

An expert from Gregory Pennington has commented: "On average, consumers have £113 less to spend per year on non-essentials. This makes it more difficult to save up for unexpected costs such as car repairs, meaning that these kinds of costs could push some people into debt.

"It is reassuring, however, that Lloyd's TSB's Spending Power Report has shown that debt repayments have grown by 1.3%. This shows that people are giving priority to clearing their debts, which could free up money for savings and non-essential spending. If you are worried about your debts you should seek expert advice."

]]> http://www.gregorypennington.co.uk/debt-management/news/average-consumer-has-113-less-per-year-to-spend-on-non-essentials-0-3842-0.htm Mon, 23 Apr 2012 15:58:55 GMT Maternity leave 'leaves a quarter in debt'
The financial burden associated with taking time off work and the added costs of raising a child mean many new parents are underprepared, and struggle financially as a result. Only a quarter of respondents to the survey (25%) said they did feel financially prepared.

One in ten end up borrowing money from their family, but 14% rely on credit cards, loans or overdrafts to make ends meet.

Things are made more difficult by the fact that the average household's monthly income almost halves during maternity leave - from around £2,866 to just £1,654.

However, not all parents are unprepared: in fact 23% of couples delay starting a family because of the cost.

Ann Robinson, Director of Consumer Policy at uSwitch.com commented: "Planning for a baby is tough at the best of times, but in the face of the soaring cost of living there is even more pressure on family finances. For some families this can mean some very difficult decisions. It's heartbreaking that so many mums are being forced into debt or having to cut short their maternity leave just to make ends meet."

An expert at debt management company Gregory Pennington said: "The cost of starting a family is not just a bigger weekly shopping bill. In most cases it also means the loss of one parent's income, and this can be very difficult to adjust to.

"As with any big life decision, forward planning is important. Potential parents should carefully consider how having a child would affect their finances - for example, whether just one income could cover all the essential bills, with room to spare.

"Of course, in reality it's not always possible to plan this way. Anyone who finds themselves struggling financially after the birth of a child, or for any other reason, should seek expert help as soon as they can."

]]> http://www.gregorypennington.co.uk/debt-management/news/maternity-leave-leaves-a-quarter-in-debt-0-3841-0.htm Thu, 19 Apr 2012 10:57:16 GMT What is the debt management process? http://www.gregorypennington.co.uk/debt-management/guides/what-is-the-debt-management-process-0-3840-0.htm Wed, 18 Apr 2012 8:49:49 GMT Joint debts on a debt management plan http://www.gregorypennington.co.uk/debt-management/guides/joint-debts-on-a-debt-management-plan-0-3838-0.htm Mon, 16 Apr 2012 15:54:1 GMT Could changes to Scottish insolvency hit the middle class? Credit Today reports.

Insolvency trade body R3 and the Institute of Chartered Accountants of Scotland (ICAS), who both spoke out last week against plans in the Accountant in Bankruptcy's (AiB) Bankruptcy Law Reform Consultation, have said that the outlined changes to Protected Trust Deeds (PTDs) could see some better-off borrowers becoming 'slaves' to their debt repayments.

According to the two bodies, Protected Trust Deeds are taken out by more affluent borrowers with problem debts who nevertheless have a job and assets.

In those PTDs successfully completed in the period 2010-11, the average 'dividend' (a payment of some of what is owed) paid was 16.2p in every pound. Yet the Scottish Government is now looking to introduce a minimum PTD dividend of 50p in every pound, which has been claimed could result in more well-off borrowers repaying more.

Scottish R3 council member John Hall said: "We believe people want to pay back their debts, but they should not be a slave to them for a disproportionate amount of time. These proposed changes will mean many more people will either be repaying their debts for years or will not be able to access any route into insolvency and will be trapped simply paying interest on enormous sums."

A spokesperson for debt management company Gregory Pennington commented: "It's important that anyone struggling with their debts finds a repayment approach which lets them get the problem under control - and at a realistic pace.

"If you're in this situation, a good debt adviser can discuss your options with you."

]]> http://www.gregorypennington.co.uk/debt-management/news/could-changes-to-scottish-insolvency-hit-the-middle-class-0-3839-0.htm Mon, 16 Apr 2012 16:4:13 GMT Debt management and your mortgage http://www.gregorypennington.co.uk/debt-management/guides/debt-management-and-your-mortgage-0-3837-0.htm Fri, 13 Apr 2012 15:56:12 GMT