Category Archives: Financial Management

Financial Management

Bankruptcy, Checking & Savings, Financial, Financial Management, Financial Services, Financial Solutions, Loans, Money, Personal Finance

Gregory Pennington Has Warned That The Recent Growth In Retail Sales Should Not Be Taken As A Sign Of Market Recovery

Responding to the recent news that retail sales growth enjoyed an unexpected rise in July, debt management company Gregory Pennington (http://www.gregorypennington.com) has warned that this should not be taken as a sign of market recovery, and that consumers should still be looking to protect themselves against a potential downturn at some point in the future.

Despite the Office of National Statistics’ predictions that retail sales growth would fall by around 0.2%, July in fact saw a rise of 0.8% compared to the previous month – a figure which, according to a Gregory Pennington spokesperson, may prompt some to “underestimate the danger that lies ahead for the economy”.

The figures follow June’s sales growth actually falling by around 4.3% – the largest decrease for several years. But the Gregory Pennington spokesperson says that this simply reflects the volatile nature of the retail market. “It’s important to look at the bigger economic picture,” he says. “Inflation is at a 16-year high, costs of living are increasing, and unemployment is rising – all of which are likely to affect the retail market negatively in the long run – but the full impact is yet to be seen.

“The retail market has seen several years of fluctuating growth – even when the economy was very strong. The rises and falls are rarely any bigger than two per cent, which is minimal in the scheme of things, and is probably coincidental.

“June’s fall of 4.4% did raise some concerns for the market, but the fact that it’s gone straight back up by 0.8% shows that this was just a particularly wild fluctuation.”

The spokesperson added that consumer caution is still necessary, highlighted by the recent year-on-year increases in people experiencing debt problems – which can be partly attributed to overly relaxed lending and high consumer spending.

“Statistics show that the number of people seeking debt help has been steadily increasing for well over a decade now – with the most distinct rise coming in 2007, when the credit crunch began to hit the economy,” he said. “Since problems with debt tend to filter through over a long period of time, we would expect this pattern to continue well into 2008 and 2009.

“Realistically, a continued slump in the retail market would in fact be a good sign for the economy, since it would show that people are taking the economic downturn and risk of getting into debt very seriously, as well as helping to bring down inflation.”

The spokesperson went on to say that if people do find themselves struggling in the coming months, they should seek debt help from an expert as soon as possible. “It’s looking like the downturn we are facing will be quite severe, and we would expect people with existing debts to suffer more than most – not to mention many people may be forced into debt as money gets tighter,” he said.

“If that is the case, it’s essential you seek debt help from a professional debt adviser. Lenders and consumers alike will feel under pressure over the next few months, so your debt adviser should be able to help come to an agreement that suits both you and your lender.”

Gregory Pennington (http://www.gregorypennington.com) are a debt management company based in Salford Quays, Manchester. They offer a wide range of debt help and solutions, including debt management plans, debt consolidation and IVAs.

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Bankruptcy, Banks, Business, Checking & Savings, Checks, Financial, Financial Management, Financial Services, Financial Solutions, IVA, Loans, Money, Personal Finance

Whatever Financial Problems An Individual Is Facing, It’s Crucial They Seek Debt Advice As Soon As Possible

Debt specialists GregoryPennington.com remind consumers with debt problems of the need to seek debt advice on time.

“Whatever their nature, virtually all financial problems have one thing in common: they get worse if left unaddressed,” says a Gregory Pennington spokesperson. “Whether someone’s behind on their mortgage payments or struggling to keep up with credit card bills, all the experts agree that the sooner they seek debt advice, the better their chances of clearing their debts as quickly and painlessly as possible.”

At the moment, mortgage payments are at the forefront of many homeowners’ worries. “The Council of Mortgage Lenders (CML) has reported 18,900 repossessions in the first half of the year, signifying a year-on-year increase of 48%. Given their forecast of 45,000 repossessions in 2008, this means they expect over 25,000 more before the end of the year.”

With timely debt advice, however, many of those potential repossessions needn’t happen at all. In a video on the BBC’s website, Judge Stephen Gold (Kingston-upon-Thames County Court) states: “The big message which I think needs to be screamed from the rooftops of the County Courts is this: that if you get into difficulty with your mortgage, don’t bury your head in the sand. Engage with the lenders. Pay what you can.”

“For unsecured debts,” the Gregory Pennington spokesperson continues, “the principle is essentially the same. When people contact us for debt advice, we stress that simply talking to a lender – whether they do it themselves or we do it on their behalf – can often produce results. A lender might agree to accept lower payments, for example, or to reduce the interest rate on a loan. It’s in the lender’s interest to arrive at an arrangement which the borrower can afford, so the money can be repaid as soon as realistically possible.

“Before they grant any concessions, of course, most lenders will want to see that the borrower is doing their utmost to order their finances and repay the debt. So the debt advice we provide goes a long way beyond ‘Talk to your lender’: we help people with all sorts of financial issues, from improving their budgeting skills to understanding their rights and responsibilities in relation to different kinds of debt.”

“If the individual’s situation has reached the point where debt advice simply isn’t enough, we can help them choose the debt solution that offers the best way out of debt. Depending on their circumstances, that could be a debt management plan, in which we talk to their unsecured lenders on their behalf, negotiating changes to their repayment terms so they can clear their debt at a rate they can afford.”

In cases where debt management isn’t appropriate, an IVA (Individual Voluntary Arrangement) or Trust Deed could be the answer: helping people reduce their monthly debt payments, these debt solutions can free up the money they need for mortgages payments, food bills and other essential living costs.

“Everyone’s circumstances are different, and no debt solution is ‘better’ than another – it’s a question of which is the most appropriate for that particular person under those particular circumstances. As always, the most important thing is for them to seek debt advice as soon as possible, before any further financial problems restrict the range of options open to them.”

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Banks, Business, Career, Financial, Financial Management, Financial Services

Joslin Rowe Recruitment Reports Banks Recruiting In High Volumes For Senior Business Unit Controllers Within Commodities

Pockets of high volume product control recruitment still exist within the City, despite wider doom and gloom. In particular, senior business unit control jobs within commodities are increasing.

Simeon Hall, a senior consultant in the Joslin Rowe senior accountancy and finance recruitment division, stated: “Commodities is one of the fastest growing product areas of the moment. As credit is down, commodities is up. A number of investment banks are rapidly expanding their desks, whilst others are effectively starting up a commodities division from scratch. This means excellent opportunities for senior product/business unit controllers.”

According to Joslin Rowe research, the commodities product control jobs on the market will appeal to those professionals looking for senior accountancy jobs, who are keen to shape the future of a new division and develop, from scratch, the product control infrastructure.

“These product control positions are highly desirable,” stated Hall, “You’re not inheriting the status quo and instead can implement new ideas with the support of strong resources, as banks pump money into the commodities arena. All the banks are keen to get the very top people on board to set up or expand their offering.”

This keenness is translating into the finance jobs recruitment process. Joslin Rowe‘s product control recruitment desk has seen the times to hire within commodities slashed by around 30% in comparison to product control jobs in other areas, such as equities. Salaries are also strong for those moving within the market. Senior product controllers are typically securing around 10-15% more – a big premium when most other remuneration packages are rising in small increments because of the credit crunch. In fact, according to Hall, recent salary jumps for the most in demand product controllers have been from £65,000 to £75,000, with a £10,000 sign-on bonus on top.

Hall also points to excellent career progression. “It’s really a chance to write your own job spec and an opportunity to rocket up the career ladder. In these start up divisions progression will revolve around success – not just dead man’s shoes. One of the most desirable aspects of these commodities product control jobs are their exposure to the front office. Being able to move out of business unit control and into a front office desk job is much more likely.

About Joslin Rowe
Established in 1982, Joslin Rowe is one of the leading UK financial services recruitment firms in the UK and Ireland. In April 2006, international staffing services company Vedior (headquartered in Amsterdam, the Netherlands) raised its stake in Joslin Rowe’s parent company, The Blomfield Group, from 18% to 70%. Joslin Rowe recruits for banking HR jobs across London, Edinburgh and Glasgow including long-term contracts, temporary and permanent roles.

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Business, Financial, Financial Management, Financial Services, Insurance

Hays Insurance Reports London Staffing Trends Conflict With Recent Layoffs By Insurance Companies

The specialist insurance division of Hays recruitment consultancy in London has announced that despite general trends in the job market, it has experienced a record month in July for introductions of permanent candidates into the insurance marketplace.

David Carr, Regional Manager for London at Hays Insurance, said: “Whilst many commentators are saying there is a slowdown in activity within the insurance industry, we haven’t seen this to be the case. We put this rise in recruitment down to a re-prioritisation of the roles that insurance companies are hiring for. They are hiring more staff in roles where people are either protecting or generating revenue. Although our clients are being more cautious than ever when making decisions on recruitment there are some very good jobs out there at the moment that would suit ambitious jobseekers.“

Roland Seddon, Regional Director at Hays Senior Finance, commented, “Over the last two months we have seen a sharp increase in demand for senior level candidates in the Insurance sector, and over 20% of our role registrations in 2007/08 have been in the last 8 weeks.”

Hays Insurance has recently filled some high profile roles in the capital, including senior positions within a Big 4 consultancy firm, senior underwriter jobs within global insurers and director roles in specialist insurers and brokers. In fact, given the current Hays Recruitment figures on the state of the market, the insurance sector appears to possibly be benefiting from the present credit crunch.

Carr observed: “We have also noticed a vast increase in temporary and contract placements for experienced qualified individuals, which has highlighted the importance of the senior interim market during such uncertain times – and illustrates the value that the industry is placing on experienced people that can come in and offer something different.”

Hays Insurance is a subdivision of Hays Plc, the FTSE 250 Company which employs 7,753 staff operating from 376 offices in 27 countries across 17 specialisms. Hays Plc placed circa 68,000 candidates into permanent jobs and paid circa 46,000 temporary workers weekly during the year ending June 07.

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Debt Solutions Company Debt Advisers Direct Have Warned That There May Be Tougher Times Ahead, And Advise People To Make Sure They Are Protected

Responding to the news that average bank balances are down by 5% compared to last year, a spokesperson for debt solutions company Debt Advisers Direct said that this is a clear sign that the credit crunch and fast-rising inflation is starting to truly affect consumers.

HSBC reported that average balances of its 8.2million customer accounts had fallen by 5% in the first six months of 2008, as rising costs of living and inflation at a 16-year high puts increasing pressure on consumers’ disposable incomes.

The Debt Advisers Direct spokesperson commented: “This is one of the first clear signs that people are feeling the pressure of the credit crunch, even if 5% is a relatively small figure.

“It’s been said many times that the impact of the credit crunch would take a while to filter through, and it would appear that time has come. Prices and living costs have reached the point where they are beginning to have a clear effect on bank balances – and that should be taken as a warning that it’s time to act.”

The spokesperson continued that while many people may not feel they have been significantly affected by inflation just yet, many leading economists have suggested the worst is yet to come.

“Economists have been predicting a more severe downturn for some time, and while that hasn’t happened yet, there are clear signs that the economy as a whole is slowing down,” he said. “This is likely to lead to further cuts in disposable incomes, especially with the sharp rises in gas and electricity prices due to come in shortly.”

HSBC had also suggested that some of the reduction in disposable incomes might be due to more people transferring money into savings accounts. In reaction to this, the Debt Advisers Direct spokesperson commented: “It would be reassuring to think that a large part of the lower disposable incomes is due to savings – and some of it probably is – but research suggests that most people do not save enough money for their future.

“Saving will become increasingly important in the next few months. Just a few hundred pounds put aside can be a useful financial buffer when money gets really tight.

“Of course, there are some people whose income simply does not stretch far enough once all their living costs are taken into consideration – particularly people struggling with debt – and those people are most at risk.”

The spokesperson added that for anyone who finds themselves struggling with debt, or thinks they might be about to, it’s essential that they seek professional debt advice as soon as possible.

“There are several solutions out there for people who find themselves struggling with debt,” he said. “For people with multiple debts who are getting by but want to simplify their finances, a debt consolidation loan could help.

“Debt consolidation loans involve combining all your existing debts into one, meaning you pay only one lender instead of many, and you may be able to reduce your monthly payments this way. However, you are likely to pay more in the long run if you do reschedule payments.

“Debt consolidation is a good way of freeing up extra funds each month – which could be crucial if the economy does hit hard times.”

He continued that even for those with unmanageable debt problems, there is help available. “For more severe debts, a debt management plan or an IVA (Individual Voluntary Arrangement) might be more suitable. Both can reduce your monthly payments in line with what you can afford.

“Before making any decisions, though, you should always contact an expert debt adviser. They will talk you through your situation and decide which debt solution is appropriate for you.”

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Bankruptcy, Checking & Savings, Financial, Financial Management, Financial Services, Financial Solutions, Loans, Money

The Sooner People Seek Professional Help In Managing Their Debts, The More Likely They’ll Be To Avoid Serious Debt

A survey by debt management company GregoryPennington.com indicates that today’s economic troubles may be encouraging people in debt to keep a closer eye on their finances.

Only 6% of those questioned saw their debt as unmanageable. Yet a full 35% of respondents who considered their debt manageable also declared they were unhappy with their financial situation.

A spokesperson from the debt management company commented: “In many ways, that 35% figure is actually a positive sign. It means people who aren’t actually struggling with debt are nonetheless aware that their finances could be better. They’re thinking beyond the present and considering the impact their debts could have on them in the future.”

That awareness is, in itself, a form of protection against financial problems in the future. “We always remind people that the sooner they seek professional help managing their debts, the more likely they’ll be to avoid serious debt altogether. Keeping a close eye on their finances is obviously key to this, as it enables them to take action at the first signs of trouble – and taking action in time can make all the difference between needing to make a few short-term lifestyle changes and being forced to live on a shoestring budget for a number of years.

“Perhaps this is one ‘silver lining’ to all the negative economic news we’re hearing these days. In good times, it’s tempting to assume that the good times will keep up. It’s human nature to focus on enjoying today when there’s no perceived threat of tomorrow being any different. But hearing all those gloomy predictions tends to make people think more about the future.”

No-one, however, has solved their financial problems by dwelling on them: “There’s little point in someone just worrying about their debts unless they take it a step further, making the necessary lifestyle changes and talking to a debt specialist about improving their financial situation.”

For people who do this before their debt becomes unmanageable, it may simply be a matter of cutting back on a few luxuries. “Nobody likes economising, but a few minutes with a calculator and pencil can prove beyond all doubt why it’s worth the effort. Exactly how they do it is up to the individual: some choose to reduce their spending to a bare minimum for a short time; others prefer to sacrifice just a few luxuries every month, even though this means their debt will take longer to clear.”

The important thing is to address their debts sooner, rather than later – while it’s still relatively easy to do: “Even if someone can comfortably manage their monthly debt repayments today, there are plenty of reasons to clear their debts at the earliest opportunity. Avoiding interest charges might be the most obvious reason, but interest isn’t the biggest threat: even small debts can rapidly escalate out of control if their situation takes a turn for the worse. If they lose their job, for example, finding that extra money every month might be all but impossible.”

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Financial, Financial Management, Financial Services, Financial Solutions, Home Equity, Money, Personal Finance

The Recent Boom In The Rental Market Reflects The Continuing Difficulty For Homeowners Trying To Sell, And May Even Prolong The Problems In The Housing Market, Says Think Money.

Financial solutions company Think Money (thinkmoney.com) have warned that a recent boom in properties put up for rent may indicate further trouble in the housing market towards the end of 2008 and going into 2009.

Recent findings by RICS (the Royal Institution of Chartered Surveyors) have shown a significant surge in the number of homeowners being forced to put their homes up for rent rather than selling, because many homeowners believe that “becoming a landlord is a better option than selling in the current climate”.

Faced with increasing mortgage costs and a very slow housing market, many homeowners are finding it more financially viable to put their own homes up for rent, while at the same time renting cheaper accommodation for themselves – effectively making a ‘profit’ each month, which helps towards their own costs.

The survey also indicated that many would-be homeowners are currently forced to stay in the rental market, as the UK economy experiences 70% fewer mortgage approvals than this time last year.

Melanie Taylor, Head of Corporate Relations for Think Money, commented that the RICS’ findings reflect a continuing downturn in the housing market, despite recent suggestions that mortgages are becoming more freely available.

“The news that several lenders have been dropping their interest rates raised some optimism for the housing market,” she says, “but these statistics from the RICS give a less positive picture.

“It’s true that interest rates are coming down for prime mortgages, but for the majority of consumers, getting onto the housing ladder is still proving difficult.

“For those already on the housing ladder, it’s getting off it that’s proving difficult. The lack of activity in the market continues to be a real problem for those looking to sell – which is forcing many to put their homes up for rent while they wait for the housing market to recover.”

Mrs Taylor also added that the boom in the rental market could have a knock-on effect on the mortgage market. “Even though the number of homes for sale is getting smaller, the decreased demand for mortgages means that the fall in house prices is being sustained,” she says.

“Only when mortgage lenders begin to relax their lending criteria are we likely to see this situation change.”

Mrs Taylor continued that in the current market, renting out your home can be a viable option for freeing up extra funds, but warned that the responsibility of becoming a landlord is not to be taken lightly. “As long as you are willing to make a temporary compromise on your living conditions, you can significantly cut down your outgoings each month, which could help you financially and enable you to save up for when the housing market recovers.

“But it’s important to remember the responsibilities of being a landlord. In particular, if anything goes wrong, you are responsible for the costs,” she says. “So make sure you aware of the risks if you’re considering taking this step.”

Think Money (http://www.thinkmoney.com) are a financial solutions company based in Salford Quays, Manchester. The company specialises in a range of financial services, including mortgages, loans, debt help and advice (including debt management plans, IVAs, and debt consolidation).

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Despite The Reduced Availability Of Credit, A Debt Consolidation Loan May Still Be A Viable Option For Worried Borrowers

Amid worries about the reduced availability of credit, debt consolidation experts DebtAdvisersDirect.co.uk stress that lenders are still offering debt consolidation loans and other forms of credit.

A spokesperson commented: “With inflation more than twice the Bank of England’s target, people in debt are particularly worried about stretching their household budget further and further, especially when talk of an economic slowdown is threatening to reduce many consumers’ income levels as well. When there simply isn’t enough money in the monthly budget, a debt consolidation loan or other debt solution could take the pressure off.

“In recent years, the easy availability of credit has led many people to turn to debt consolidation loans as a way of reducing both their monthly debt repayments and the complexity of their finances. So the Bank of England’s Q2 2008 Credit Conditions Survey makes disturbing reading.”

The Survey provides a summary of what ‘bank and non-bank’ lenders have seen over the past three months, and what they expect for the coming three months. It reveals that lenders had reduced the availability of both secured and unsecured credit to individuals and expected ‘some additional reductions in credit availability over the next three months’.

“The key word here is ‘reduced’,” the spokesperson continued. “The Survey shows that the availability of secured credit, for example, was down around 45% in Q2, with lenders tightening credit scoring criteria and decreasing maximum LTV (loan to value) ratios. Although it’s a significant reduction, it does not mean credit is unavailable. As long as they have sufficient equity in their home – and as long as they approach a lender who specialises in helping people in their situation – many people still stand an excellent chance of obtaining a secured debt consolidation loan.”

Looking ahead, however, lenders do anticipate a further reduction in the availability of secured credit. Even though they expect Q3’s reduction to be smaller (just over 20%), the cumulative effect could well make it harder for certain people to access the debt consolidation loans they need in the months ahead.

Where debt consolidation isn’t an option, alternative debt solutions may still be available. Debt management, for example, can be an effective way for someone in debt to bring their expenditure back in line with their budget without accessing any further credit. “When someone joins a debt management plan, they essentially ask debt specialists to renegotiate their repayment terms. This can bring their monthly debt repayments down to an affordable level, freeing up the funds they need to cope with the rising cost of living.”

Should debt management not be appropriate, an individual may still be eligible for an IVA (Individual Voluntary Arrangement), a legally binding agreement with their creditors. “In an IVA, the individual agrees to make fixed monthly payments, based on what they can afford after essential living expenses, for the duration of the IVA – normally five years. If 75% of the creditors (by debt value) consent to the terms of the IVA, they’ll agree not to take any legal action against the individual, and to write off any remaining debt once the IVA has successfully concluded.”

Whatever an individual’s circumstances, the spokesperson stressed, their first move should be to contact a debt specialist as soon as possible: “In the vast majority of cases, debt problems only get worse when they’re ignored. The important thing is to seek professional debt advice as soon as you realise you have a potential problem.”

About Debt Advisers Direct
http://debtadvisersdirect.co.uk helps people with financial difficulties, providing debt advice and tailor-made debt solutions.

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Ivas Don’t Address Mortgages And Other Secured Debts But They Do Reduce Payments To Unsecured Creditors

Commenting on the rising number of home repossessions, debt consolidation experts DebtAdvisersDirect.co.uk point out that IVAs (Individual Voluntary Arrangements) and other debt solutions could help people stay in their homes.

Of the 45,000 repossessions expected by Council of Mortgage Lenders (CML) in 2008, there were 18,900 in the first half of the year. In the second half, therefore, the CML expects a further 26,000 or so.

“As with any statistical forecast, this figure isn’t written in stone,” said a DebtAdvisersDirect.co.uk spokesperson. “Times are particularly tough for homeowners, but many people threatened with repossession may be able to resolve their situation by talking to their lender, and by taking steps to sort out their finances and free up enough money for their mortgage payments.

“Different homeowners will, of course, need to adopt different tactics to avoid repossession. Some may just need to reduce their spending, while others may need to consider taking in a lodger, for example, or working longer hours.

“But for many, the problem is unmanageable debt. Many people can’t afford their mortgage payments because their non-priority debts are taking up so much of their budget. We would advise anyone in that situation to seek debt help immediately. A professional debt adviser can help them go through their finances and figure out what steps they would need to take to free up the necessary funds.”

Often, those funds are already there: “Very few people know exactly where all their income goes. They may know where they spend large sums of money, but the smaller sums can easily slip through the cracks – and they all add up. This is why so many people find they have enough ‘on paper’, but not in reality. A debt adviser can help them create a monthly budget sheet and track their spending more effectively.”

Some homeowners, however, are facing more serious debt problems. “At a certain point, the monthly debt repayments simply exceed the individual’s ability to keep up – there just isn’t enough money coming in to service the debts and cope with the ongoing bills. Once this happens, they find it’s almost impossible to pull themselves out of debt without professional help. The important thing is to get in touch with a debt specialist as soon as possible, and find out what they can do to help.

“Depending on the individual’s circumstances, the best debt solution could be an IVA. As a form of insolvency that helps people clear significant debts without resorting to bankruptcy, an IVA can be an effective way of reducing their monthly expenditure, freeing up the money they need to make their mortgage payments and start paying off any arrears that have built up.”

An IVA is a legally binding agreement between an individual and their unsecured creditors, which normally lasts for five years. “The individual commits to making fixed monthly payments throughout the IVA, based on what they can afford after taking their essential living expenses (including mortgage payments) into account. If enough of the creditors agree to the terms, they’ll agree to freeze interest, not to take any legal action, and to write off any outstanding debt at the end of the IVA. Like bankruptcy, an IVA helps borrowers make a fresh start, but unlike bankruptcy, it helps them protect their home – they may have to release some equity, but it’s extremely unlikely they would have to sell.”

Yet it’s important to recognise that IVAs are not an appropriate solution to every homeowner’s problems. “Whatever financial issues an individual may be facing,” the spokesperson concluded, “it’s vital they seek debt advice from a specialist offering a range of debt solutions – someone who can help them take stock of their situation, understand their options and identify the best way forward.”

About Debt Advisers Direct
www.debtadvisersdirect.co.uk helps people with financial difficulties, providing debt help & advice and tailor-made debt solutions.

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Financial Consequences Of An Expensive Holiday Can Outweigh Any Beneficial Effects

Responding to a study suggesting that a quarter of British adults have shelved their holiday plans to ease the strain of the credit crunch on their finances, debt management company Gregory Pennington (www.gregorypennington.com) have advised other people struggling with their finances to consider following suit and not risk getting into debt this summer.

The study from CreditExpert.co.uk, the online credit monitoring service from Experian, showed that 43% of those questioned were worried about the impact of a holiday on their finances, yet only 24% have changed their plans.

The study also claimed that 2.8 million British adults will get into debt in order to fund holidays this year – twice as many as this time last year.

A spokesperson for Gregory Pennington commented: “It’s encouraging that many people are considering changing their plans with regards to holidays this year, although it’s still a concern that so many people are still spending beyond their means.

“The relatively easy access to credit in recent years has meant it is now common for people to get into debt to fund expensive holidays, and this debt can become a serious burden if it’s not managed properly.”

The study also claims that 33% of those in the 18-24 age group say that peer pressure often forces them into holidays they cannot really afford. “This is a common problem,” says the Gregory Pennington spokesperson. “We live in a culture where we can take many things for granted, and it seems to many people that includes holidays. But if that involves racking up large debts, it might be best to carry on saving and maybe even wait until next year.”

Of the people attempting to cut back on holiday debts, it was revealed that 19 per cent would be sharing with family or friends in an attempt to cut costs. This figure rises to 37 per cent in the 18-24 age group.

The spokesperson commented: “Sharing is a good way of minimising holiday debts this summer, and some people may be able to avoid getting into debt entirely this way. Certainly, if you are still intending on going on holiday, we advise people to cut costs wherever possible, unless you are completely sure you can afford it.

“The credit crunch is putting pressure on most of us at this time, and there is the risk that unless you are very careful, you could arrive home with potentially unmanageable debts to deal with.”

The spokesperson went on to point out how easy it is to get into debt unintentionally. “Many people book holidays well in advance, up to a year in some cases. Much of this is done on credit, under the belief that they will be able to save up enough money in that time to cover the holiday.

“But the pressures of the credit crunch and rising costs of living mean that many people may be finding it much harder to pay for their holidays than they anticipated. If this happens, it doesn’t take long before the interest begins to add up and the debts could become unmanageable if they are not taken care of quickly.

“We advise anyone in this situation to contact an expert debt adviser, who can discuss your situation and help decide the best plan of action. There are various debt solutions available to suit different situations, including debt management plans, debt consolidation loans and IVAs. Choosing the right debt solution could help you cut down your monthly costs and prevent your debts from continuing to grow.”

Gregory Pennington (http://www.gregorypennington.com/) are a financial solutions company based in Salford Quays, Manchester. The company specialises in a range of financial services, including mortgages, loans, debt help and advice (including debt management plans, IVAs, and debt consolidation).

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Debt Advisers Direct Have Advised The Public To Keep A Close Watch On Their Finances, And To Seek Expert Debt Advice

Responding to recent research suggesting that the number of people who feel they are still managing well in the current economic climate has fallen, Debt Advisers Direct have advised the public to keep a close watch on their finances, and to seek expert debt advice immediately if they are unable to meet their financial commitments.

Mintel, a leading market research company, have revealed that the number of people who see themselves as living comfortably or managing easily has fallen from almost two thirds (64%) in 2006 to just over half (51%) this year, as rising costs of living and the credit crunch put increasing pressure on peoples’ finances.

The research also reveals a leap in those who feel money is tight, despite getting by financially – this figure rising from just one in four (25%) in 2006 to 39% this year.

A spokesperson for Debt Advisers Direct commented: “The fact that increasing numbers of people are feeling the pinch is to be expected, but these figures give an interesting picture of how people are actually coping with it at this time.

“What’s interesting is that 51% of people still feel they are managing easily, which may seem a high figure to some, considering all the stories in the news at the moment,” she continues. “But it’s telling that the figure has fallen so sharply since 2006, which was a relatively good time for the economy.”

The spokesperson went on to explain that the reported fall in confidence could be the first stage of a more significant downturn. “When the economy gets into trouble, the effects can take a while to filter through. Many people are still managing well following the buoyant economy of 2006 to late 2007,” she says. “But as the problems begin to filter through – for example to homeowners struggling to sell their homes, consumers facing higher food prices and bills, etc. – we may well see more people’s circumstances take a turn for the worse.”

The report coincides with Nationwide Building Society’s latest Consumer Confidence Index, which reveals that consumer confidence has taken a further fall, down 18% since July and down 43% since this time last year.

The Debt Advisers Direct spokesperson said: “Consumer confidence can be affected by things like the media portrayal of the economy, but a large part of it does come down to personal situations.

“Even those who have not been terribly affected by the credit crunch will have noticed how quickly the price of food and household costs are rising. And those people are quite right to be concerned about what the future may hold.

“We would advise everyone to keep a close watch on their finances at this time. Budget well, don’t overspend, and try to save where possible. And if you do think you are getting into trouble with debt, seek expert help from a debt adviser.

“A debt adviser will talk you through your situation and help you to decide the best course of action. For example, if you have a number of debts that you are struggling to balance with your household commitments, a debt consolidation loan could help.

“Debt consolidation loans work by grouping all your debts together, so you only repay one creditor instead of many,” she says. “Payments can be rescheduled over a longer period of time than the original debts, meaning payments are lower – which could be a useful way of freeing up extra money for your other living costs. But be aware that rescheduling your debt consolidation loan will probably involve paying more in interest in the long run.

“If you find you simply can’t meet your payments, though, an IVA (Individual Voluntary Arrangement) or debt management plan might be more suitable. If you’re unsure, as with any debt solution, speak to a debt adviser first.”

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DebtAdvisersDirect.co.uk warn that recent large increases in the price of gas could seriously affect people in debt.

Following recent increases in the price of gas, debt consolidation experts DebtAdvisersDirect.co.uk warned of the probable impact on those already struggling to cope with higher living costs, economic uncertainty and record levels of personal debt.

Shortly after EDF Energy’s announcement of its decision to raise gas prices by 22%, British Gas owner Centrica announced an increase which would see the average gas bill rise by 35%, taking a ‘standard’ annual £650 bill up to almost £900.

“In itself,” said a spokesperson for DebtAdvisersDirect.co.uk, “this increase could be enough to push certain households into debt – or further into debt – but this is by no means an isolated instance. Today’s consumers are facing substantial increases across the board, from food and petrol to gas and electricity. The cumulative effects can be devastating: for many, there may simply be no way of finding another £227 per year, which works out to almost £5 per week.”

Zoe Mcleod of independent charity National Energy Action summed it up as follows: “Centrica is the second energy supplier to put its prices up. We expect this sequence to continue across all suppliers forcing more than 1 million households in England into fuel poverty. Across the UK fuel poverty could affect 6 million households by the end of the year.”

Despite British Gas’ reassurance that the increase would be postponed until April for the 340,000 customers who qualify for its ‘Essentials’ tariff, the effect on millions of other customers will be immediate. “With so many demands on their budget, consumers are facing some tough decisions,” the DebtAdvisersDirect.co.uk spokesperson continued. “They may feel forced to ‘juggle’ their debts using credit cards, or even to neglect some bills so they can pay others.

“As debt advisers with 15 years’ experience, we strongly advise against either course of action. However serious someone’s debts are, there are far better ways of handling them. The important thing is to seek expert debt advice – and to do it sooner, rather than later.”

In many cases, the right debt advice can help people cope with the extra strain on their finances: “Some people may be able to free up the necessary extra funds by learning to budget more effectively, or by renegotiating payments to their creditors. For others, however, no amount of debt advice will be enough – if their budgets are already stretched to the limit, they may need to look into professional debt solutions, such as a debt management plan or debt consolidation loan.

“In today’s economic climate, of course, the kinds of debt help available may be limited, as problems in today’s credit market are keeping some people from accessing the debt consolidation loans that could help them regain control of their finances. In cases like this, an alternative debt solution may be more appropriate.

“Debt management, for example, relies not on access to further credit but on negotiations between an individual’s creditors and the debt management professionals who ask them to accept lower monthly payments and grant other concessions. As always, we would recommend that anyone in financial difficulty seek professional debt advice as soon as possible.”

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Gregory Pennington advise people to stay on top of their finances

As the credit crunch reaches the end of its first year, debt management company Gregory Pennington (http://www.gregorypennington.co.uk) have advised people to keep on top of their finances, and warned that there may still be tough times ahead.

A spokesperson for Gregory Pennington said: “While studies suggest some of the country feel they have not yet been affected too badly by the credit crunch, these people may begin to feel the effects as future events unfold.”

A recent survey in The Times revealed that 66% of those asked felt their family would fare badly over the next year, while 77% felt the country as a whole will suffer. The spokesperson said that while these views are probably justified, there is still a lot people can do to lessen the effects of the credit crunch.

“The most important thing is staying on top of your finances,” says the debt solutions company. “Make sure you are meeting all your priority financial commitments before anything else, and try to build a budget around that. If you find you can’t meet those commitments, seek expert advice as soon as possible.

“We would also advise people to save as much as possible, because that little bit extra could come in very useful if things get tight.”

The fact that the remaining 34% of people questioned in the survey did not feel (or weren’t sure) that their family would suffer over the next year suggests that the credit crunch has not necessarily affected everyone. But the Gregory Pennington spokesperson warned that other problems linked to the credit crunch may start to kick in over the next few months.

“It’s important to distinguish between the different elements of the economic downturn we’re currently experiencing,” he said. “The credit crunch primarily affects people looking for credit – particularly homeowners, who may be faced with large arrangement fees or higher payments when they remortgage, and also those looking to obtain loans and new mortgages.

“People who aren’t reliant on credit, or homeowners who have a long-term fixed rate on their mortgage, may well have been largely unaffected – so far.

“But it’s now very possible that we will see the knock-on effects of the weak housing market combined with rising costs of living – higher unemployment, increasing amounts of people struggling to meet their comments, and more people facing problems with debt.

“Even if it does get to that stage, there are still things you can do. Seeking professional debt advice from an expert debt adviser is essential if you find yourself in financial difficulty.

“There are a range of debt solutions available to meet different situations, including debt management plans, IVAs (Individual Voluntary Arrangements), debt consolidation loans and remortgages, etc. One of these could be a lifeline if you find yourself with unmanageable debt, which is a growing threat in the current economic climate.”

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New research from Prudential reveals working-age adults have lost sleep worrying about their pensions

According to new research from Prudential, more than one in three working-age adults have lost sleep worrying about their inability to save enough for retirement*, and the pressure on retirement saving is being increased by a combination of the housing market slowdown and rising household costs.

The Prudential research focusing on working adults provides a snapshot of ‘Burned Out Britain’ as concerns about being unable to save enough for a comfortable retirement drives people to work longer hours and increases stress levels. Around one in five working-age adults have worked longer hours or taken an extra job to increase their pension savings.

Prudential’s research shows just 27% of adults believe they are saving enough to maintain their current standard of living in retirement while 38% want to contribute more to pensions with half of them keen to contribute a lot more.

However financial pressures are making it difficult for them to put their money where their ambitions are – 51% blame higher costs of living while 18% of them don’t want to reduce their disposable income to ensure a more comfortable retirement.

The struggle to match pension ambitions with reality is also increasing the stress levels for these people with three-quarters expressing they were feeling increasingly anxious, and the current economic climate is piling on the pressure.

Julie Mulvanny, Prudential’s Head of Business Development for Pensions said: “The pensions crisis is becoming extremely personal when people are losing sleep over being unable to save enough for retirement.”

She continued, “When the pressures of the current short-term economic climate are added to the mix it is almost surprising that more of us are not lying awake at night worrying. It is clear however that many of us are waking up to the idea that we have to take responsibility for our own retirements and that is a long-term commitment.”

Around 9% said they have cut the amount they save into their pension due to rising living costs.

Up to one in 20 say the housing market slide has knocked their confidence in property as a pension while eight per cent are concentrating on building up short-term savings to tide them over in the event of any problems caused by the current economic climate.

Julie Mulvanny concluded, “It is encouraging that this message is getting through and there is plenty that we can all do to ensure we get the retirement we want and deserve. The UK needs a new approach to retirement income and planning for retirement. That should involve more than simply saving into a pension but should also involve looking at all sources of income.”

Disclaimer:
The information contained in Prudential UK‘s press releases is intended solely for journalists and should not be used by consumers to make financial decisions. Full consumer product information can be found at www.pru.co.uk.

 

About Prudential:
Established in 1848, today Prudential plc is an international financial services company with a product range which extends from personal banking, insurance, pensions and retail investments, to institutional fund management and property investments.

In the UK Prudential is a leading life and pensions provider with around seven million customers.

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Pioneer Services Offers Simple Online Banking Tips for Retirees

Consumer use of online banking and financial services has exploded in recent years. While technology has made life more convenient, some Americans are still low-tech when it comes to banking, despite the advantages online financial services can provide. The same is true in the military, where older service members who have likely relied on cutting edge technology to accomplish various missions may not apply this technology to their daily lives, especially after they retire.

As a result, Pioneer Services, a leader in financial services for the military, has created a new article highlighting the benefits of the online banking experience, along with some common sense tips for a safe and secure transaction. The article, Military retirees and online banking – securely saving time and money, is intended to educate both retired and active-duty military consumers.

“New technology and security advancements have torn down the walls between what used to be done kneecap-to-kneecap and what can now be done online”, said Doug Allen, chief information officer for Pioneer Services and author of the article. “Today, online financial services can save time, offer more options, afford privacy, and provide greater flexibility and control over your finances.

“There are millions of online financial transactions every day,” he added. “And just like when using an ATM or walking into a bank, a little common sense while online will ensure a quick and easy transaction while protecting your privacy and security.”

To read other financial education articles for military families, visit the Learning Center at PioneerMilitaryLoans.com. For more information about Pioneer Services, visit PioneerServices.com.

Pioneer Services, the military banking division of MidCountry Bank, offers responsible financial services and education to members of the Armed Forces that enhance their quality of life and financial independence. For more than 20 years, Pioneer Services has been a leader in military lending. They offer the protection and security of a personal loan with the speed and flexibility service members need. Through a network of offices and on the Internet, Pioneer Services offers loans, financial education programs, and supports military families and communities through a variety of partnerships, programs, and sponsorships.

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Raising road tax could mean more hardship for families already under severe financial pressure

Government plans to raise road tax for millions of motorists could mean more hardship for families already under severe financial pressure, says debt management company Gregory Pennington.

Commenting on proposed changes to vehicle excise duty, debt management company Gregory Pennington highlighted the negative impact the changes could have on millions of motorists already struggling to cope with escalating costs of living. The plans will mean higher road taxes for an estimated nine million motorists.

“Naturally, we applaud government efforts to protect the environment,” a spokesperson for the debt management company stated, “but these are tough times for families throughout the UK. The credit crunch, housing market uncertainty, record levels of personal debt and rising food costs – the cumulative impact can be overwhelming, and many motorists will struggle to cope with any extra burden on their finances, especially in the face of today’s unprecedented fuel prices.

“Particularly worrying, we note that many so-called ‘gas guzzlers’ are family cars. Many families would love to save on petrol and insurance by switching to a smaller vehicle, but for space reasons that’s simply not an option, as anyone with three children (and two prams) could tell you.”

An example: according to the Vehicle Certification Agency, a 1.6 litre Renault Scénic (petrol; 6 speeds) emits 182g of CO2 per km. Under current rules, this would fall in the E band and cost £170 for 2008/09, but under the new rules, it would fall in the J band and cost £260 in 2009/10. “With so many households already struggling to manage their debt payments, £90 could make the difference between climbing out of debt and sliding further into it – and many drivers will find themselves facing much larger increases, paying hundreds of pounds more.”

There are, however, debt solutions that can reduce monthly outgoings, such as Gregory Pennington’s debt management plan. “Our debt management plan was designed with flexibility in mind: when our customers’ expenses go up (or their income goes down), we talk to their unsecured creditors about making the necessary adjustments to their repayment plans. By freeing up funds that would have gone towards their non-priority debts, we help our customers stay on top of their priority commitments – the kind of debts that, if neglected, can rapidly land them in serious trouble.

“Even under normal conditions, a debt management plan offers a realistic, affordable path out of debt – but at a time like this, when people find themselves facing so many financial challenges simultaneously, borrowers have even more reason to select a flexible debt solution that can renegotiate their payments in line with changes to their disposable income.”

At the same time, debt management offers creditors a proven way of recovering the money they’re owed without resorting to any ‘extreme’ measures. “In the 15 years since Gregory Pennington was founded,” the spokesperson concluded, “we’ve found that most lenders would rather negotiate with a debt management company than resort to court action – accepting lower payments might mean the debt is repaid more slowly, but the majority of creditors will accept this, as long as the individual demonstrates they can make those payments reliably.”

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