Debt Management help and advice from Gregory Pennington http://www.gregorypennington.com /debt-management/guides/benefits-of-debt-management-0-3807-0.htm Wed, 1 Feb 2012 16:30:53 GMT /debt-management/guides/debt-management-vs-iva-0-3806-0.htm Tue, 31 Jan 2012 16:17:47 GMT The Independent. Hopefully, that should go some way to reducing the temptation for borrowers to allow a debt to grow and grow.

Wonga and businesses like it have been criticised for the rate of interest they charge annually on short-term, small to medium loans, which some see as excessive. Payday lenders have also been accused of encouraging borrowers to extend the repayment period, earning themselves charges along the way.

Payday lenders have always maintained that an annual rate of interest isn't a fair assessment of payday loans, because the loans are meant to be short-term. For example, Wonga says a borrower would typically pay £42.96 in interest if they borrowed £100 for 36 days.

However, when loans are regularly rolled over, the charges can quickly add up to more than the original loan.

The Finance & Leasing Association (FLA), a finance trade body, put together the code of conduct which limits the number of times a loan can be rolled over to three. Wonga is the first and only payday lender to become a member of the FLA and the only one to sign up to the new agreement, although others may do the same.

A spokesperson for debt management company Gregory Pennington commented: "The Office of Fair Trading and the Department for Business, Innovation and Skills are currently looking into payday lender charges, so we could see further changes in this sector in the near future."

]]> /debt-management/news/wonga-agrees-to-limit-roll-over-loans-to-three-months-0-3805-0.htm Mon, 30 Jan 2012 14:17:18 GMT Office for National Statistics (ONS). If this trend continues throughout the first three months of 2012, then the UK will be in a recession.

The disappointing growth figures coincide with the current 17-year peak in unemployment - 2.68 million are unemployed, or 8.4% of the population. Manufacturing contracted significantly by 0.9% in the final quarter of last year too, which will have had a major impact on GDP.

It's reported that the Bank of England plans to remedy the situation with further quantitative easing. The Telegraph reports that £275 billion has already been injected into the economy this way and a further £50 to £75 billion of QE is expected in early to mid February.

The Coalition's methods to bring down the deficit have been criticised by opposition MPs, although it looks like there may be a recession throughout the eurozone and the problem won't be limited to the UK.

Personal debt is still an issue. A campaign group, 'Save Our Savers', says that consumer debt increased by £18.4 billion between November 2008 and November 2011 (excluding debts the banks have written off) and that credit card debt is currently £56.5 billion and has risen £16.1 billion over the same period. ]]> /debt-management/news/uk-double-dip-recession-and-growing-debt-0-3804-0.htm Thu, 26 Jan 2012 11:25:30 GMT The Guardian.

This day of the year has earned the moniker 'Blue Monday,' as Christmas is behind us, the mornings are still dark and many people are financially stretched by the end of the month anyway. It's unlikely this gloomy report will do anything to lift the mood of a financially struggling nation.

The 'squeezed middle' is a demographic first identified by the former Labour Government under Prime Minister Gordon Brown and has been adopted by current leader Ed Miliband. You are part of the 'squeezed middle' if you don't have children and earn between £12,000 and £29,000 a year, or you do have children and earn between £16,000 and £41,000.

It's not that incomes will fall per se - rather that the cost of living has been increasing rapidly in areas such as food, fuel and utilities. The effect is that low to middle income earners' 'real incomes' actually decreased in recent years. It's reported that it would take a level of economic growth not seen for a decade for 'squeezed middle' incomes to return to pre-recession levels.

Unsurprisingly the think tank also says that one in three adults in the UK are planning to cut back on their spending this year, although how many are doing so out of necessity is unclear. On a more positive note, the number of people saving has risen to 30%, as people seem to recognise the importance of having a financial 'safety-net'.

A spokesperson for debt management company Gregory Pennington commented: "A drop in income can be a trigger for debt problems, especially when families with existing debt can no longer afford their obligations. There is help available for families that are struggling to repay debt, and we advise anyone in this situation to seek help from a debt expert."

]]> /debt-management/news/low-and-middle-income-earners-finances-wont-improve-until-2020-0-3803-0.htm Mon, 23 Jan 2012 13:8:6 GMT /debt-management/guides/payday-loans-a-good-idea-0-3802-0.htm Fri, 20 Jan 2012 15:58:20 GMT Shelter reports a 60% increase in the number of families who are cutting back on essential spending, so they can afford their mortgage or rent, since 2008.

According to the charity, more than one in five has cut back on how much gas and electricity they used in the last twelve months for the same reason. Even more people are cutting food spending to pay housing costs - just over one in three of us are doing so, a rise of 44% since 2008.

The YouGov survey of 4,014 UK adults paints a picture of families all over the UK cutting back on essential spending just to keep a roof over their heads. The survey could suggest that as many as 10 million people are cutting back on fuel for their home and 16 million are cutting back on food to stay in their homes.

A spokesperson for debt management company Gregory Pennington commented: "Many families need to rein in spending from time to time and it's more likely to happen during a recession. However, most people would agree that there's a limit to how much anyone can cut back their spending, particularly on essentials like food and fuel. If you are being forced into debt to pay your living costs, we recommend speaking to a debt expert."

]]> /debt-management/news/families-cutting-back-on-food-and-fuel-to-pay-the-mortgage-or-rent-0-3801-0.htm Thu, 19 Jan 2012 13:56:50 GMT /debt-management/guides/debt-advice-where-in-the-uk-0-3800-0.htm Tue, 17 Jan 2012 16:25:31 GMT reports The Telegraph.

CEBR believes the economy actually shrank during the final quarter of last year and is still contracting. The economy is considered to be 'in recession' when there is no growth for two quarters in a row. We will not know whether we are currently in a recession until the first quarter growth figures are released later this year.

This think tank predicts the UK economy will shrink by 0.4% in 2012 - in October it predicted a 2012 growth of 0.7%. It warns the negative growth could be as high as 1.1% if eurozone debt problems affect the UK.

Others are also predicting a recession: the Ernst and Young ITEM Club says we are probably in recession now, and the Chartered Institute of Personnel and Development says that current unemployment (2.6m) will not fall below 2.5m until at least 2016.

A spokesperson for debt management company Gregory Pennington commented: "One increased risk people face during a recession is unemployment. We recommend families do everything they can to protect themselves financially for any eventuality, including budgeting carefully and trying to pay down any outstanding debts."]]> /debt-management/news/think-tank-says-uk-back-in-recession-0-3798-0.htm Mon, 16 Jan 2012 11:23:8 GMT /debt-management/guides/waiting-for-payday-beating-the-january-blues-0-3799-0.htm Mon, 16 Jan 2012 14:43:34 GMT /debt-management/guides/getting-debt-help-early-5-reasons-0-3796-0.htm Thu, 12 Jan 2012 12:32:2 GMT
Around two thirds of workers (65%) have had a pay freeze in recent years - while 15% haven't seen a pay rise in at least three years. This is causing serious problems for people all across the country, as pay is not keeping up with inflation.

Only 30% of people who work expect a pay rise, and even those lucky ones may only get 2.1%, on average - around half the rate of inflation at the moment.

Of the people expecting pay freezes this year, around half of them will cut back on discretionary spending and two in ten will try working longer hours or starting a second job to boost their income.

Rail fares went up 5.9% on average at the start of this year, and energy bills by 21% last year (although EDF recently announced a 5% drop and other energy companies are expected to follow suit). No wonder 76% of us are worried about the cost of living.

While one quarter of consumers are concerned about existing debt, there are real fears that pay freezes and the rising cost of living could push more people over the edge of their finances.

A spokesperson for debt management company Gregory Pennington commented: "Anyone concerned about their existing level of debt may be able to regain control of the situation by reining in spending, or increasing their income in some way. Where this is not an option, seeking advice from a debt expert is a sensible next step."

]]> /debt-management/news/quarter-of-brits-with-debt-worries-during-pay-freeze-0-3797-0.htm Thu, 12 Jan 2012 13:1:4 GMT /debt-management/guides/debt-management-tips-for-the-new-year-0-3795-0.htm Wed, 11 Jan 2012 13:21:6 GMT
A budget is simply a record of every expense you have for the month ahead. An even better budget takes account of forthcoming expenses - like birthdays, or your car tax renewal date - so that you can plan for these expenses accordingly.

Ideally you can review your budget regularly throughout the month to make sure your finances are on track. You could even make this year the year you put more money into savings for the future.

Any money you can save elsewhere can go towards debt repayments. The start of the year is an excellent time to assess whether every financial commitment you have is giving you value for money. Consider changing your fuel tariff, ending subscriptions or memberships you no longer use, or whether a debt consolidation loan could lower your monthly payments.

A spokesperson for debt management company Gregory Pennington commented: "Many people are attracted to debt consolidation loans for the significantly lower monthly payments they could be making by spreading the loan over a longer period.

"However, that will work out more expensive if you end up paying interest for longer. Only apply for a loan with monthly repayments that you know you could afford for the full length of the loan. If you began missing payments, it would damage your credit rating and you could be charged."

]]> /debt-management/news/new-year-new-budget-0-3794-0.htm Tue, 10 Jan 2012 13:25:24 GMT The Telegraph.

Over two thirds of the people who took part in the survey were paid early in December. This can be really helpful when you want to pick-up some last minute Christmas presents - but 37% of these people said they weren't happy about being paid early, as it seemed to encourage overspending.

The temptation to overspend when your wages hit your bank account is fairly normal, but that's not the only temptation. Just under a third (31%) of people with no money left over for January spent it on Christmas presents but even more (38%) spent too much money in the January sales. Around a quarter (23%) overspent on socialising.

Only 14% of respondents felt they were "no worse off" than at other times of the year.

Despite having to tighten our belts after Christmas, many of us are happy to do so because it's 'only once a year'. In fact the majority of respondents in this survey (nearly two-thirds) said they had no regrets about spending all their money.

A spokesperson for debt management company Gregory Pennington commented: "January is a difficult month financially for many families. However, if every month you find you have no disposable income left over, it's time to get debt advice. A debt expert could help you."

]]> /debt-management/news/overspent-this-christmas-youre-not-alone-0-3793-0.htm Mon, 9 Jan 2012 12:31:1 GMT
The survey of 2,000 UK credit card holders equates to a national figure of over 12 million people relying on their credit card for everyday items. Some 42% of people need their credit card to buy food and one in ten to pay their domestic bills.

The survey was carried out at the same time last year and indicates a 2% increase in the number of people relying on their credit cards this January. While this isn't a significant increase, it does indicate personal finances haven't improved for many consumers since this time last year.

A spokesperson for debt management company Gregory Pennington commented: "Consumers risk falling into a 'debt trap' as credit card debts can take many years to repay - particularly if the balance is not repaid in full every month. Consumers also need to be aware of the interest they're being charged based on how quickly they are able to repay their debt.

"Relying on a credit card to pay for essentials, like the grocery shop and domestic bills, can indicate an underlying debt problem - particularly if this pattern of behaviour continues over a sustained period of time. A debt expert can offer guidance if you have any concerns about your current level of debt."

]]> /debt-management/news/january-and-the-debt-trap-0-3792-0.htm Thu, 5 Jan 2012 11:56:27 GMT /debt-management/guides/january-blues-are-debt-problems-getting-you-down-0-3791-0.htm Wed, 4 Jan 2012 15:56:19 GMT /debt-management/guides/debt-help-for-scottish-residents-0-3789-0.htm Tue, 3 Jan 2012 13:3:43 GMT the BBC reports.

A YouGov survey on behalf of the Samaritans, spanning 12 months, found that as many as 58% of people are worried that they won't have enough money to live on next year. Over a third of people are worried about their job security and whether they could find work if they did lose their job.

The online survey found an increasing number of calls from people distressed about payday loans.

As many as one in five calls to the Samaritans this year were about job worries, housing problems, debt and other financial problems. There were only one in ten calls like this before 2008.

The charity helps 2.5 million callers every year with its around-the-clock, 365 days-a-year helpline. Overall, money, bank balances and debt were the most common worries this year among callers.

A spokesperson for debt management company Gregory Pennington commented: "Christmas is a time for celebration, but there are clearly many people who are concerned about their financial situation and what the future holds. If you or someone you know is concerned about debt, a debt expert may be able to help find a realistic solution.

"The situation is never hopeless, there is usually something that can be done about debt, so seek help sooner rather than later."

]]> /debt-management/news/money-worry-calls-to-samaritans-doubled-since-two-thousand-and-eight-0-3788-0.htm Thu, 22 Dec 2011 11:37:29 GMT
The findings are pretty grim readings, given that it's currently the season of goodwill and glad tidings for many people in the UK. In fact, the Markit survey suggests many of us won't be having a 'Merry Christmas'. The number of people insecure about their job grew at the fastest rate since April this December. This is unsurprising given that unemployment reached an eye-watering 2.64 million in the third quarter of this year.

Many of us are finding our incomes aren't rising in line with the cost of living, which makes it difficult to maintain the same standard of living enjoyed just a few years ago. In fact, the Markit survey indicates that many are experiencing the fastest drop in their income for over two and a half years.

While most of us still make the effort to buy Christmas presents, many are getting into debt to do so. Around 22% of households say they're in more debt than November, while only 15% are in less debt. Those in the lowest income group are getting into debt faster than those with middle incomes.

A spokesperson for debt management company Gregory Pennington commented: "While many people are feeling pessimistic about their finances, there are a number of things people can do to improve their own financial situation, beginning with a well thought-out budget and financial plan for the year. Anyone concerned about their level of debt may find advice from a debt expert could put them on the path to financial recovery."

]]> /debt-management/news/markit-survey-reflects-dire-financial-situation-for-many-0-3787-0.htm Mon, 19 Dec 2011 12:23:35 GMT