Peter Payack Finance

A trade body for IVA (Individual Voluntary Arrangement) and debt resolution firms has said that as many as one in 60 people in England and Wales could be facing unmanageable debt.

David Mond, chairman of the Debt Resolution Forum, claimed that “there are an estimated 110,000 people currently in individual voluntary arrangements”, as well as “…probably more than 700,000 people in informal debt management plans”.

Read more

Debt Management Pros and Cons

Anyone who knows something about debt probably knows something about debt management companies – professional firms who will manage an individual’s debts on their behalf.

This article takes a look at the pros and cons of debt management in terms of three topics close to any borrower’s heart: saving money, reducing stress levels and protecting credit rating.

Topic #1: Saving money

Pros: Monthly payments lowered. Interest frozen. Charges waived. The better their relationship with creditors, the better a debt management company’s chances of successfully negotiating for one or more of these concessions. This can save the client a considerable amount of money – not just every month, but potentially over the course of the debt management plan as well.

Cons: Lowering monthly payments means debts take longer to pay back. If interest hasn’t been frozen, they’ll also accumulate interest for longer, adding to the long-term cost. Plus, there’s no guarantee creditors will agree to any concessions, or that they’ll save the client more in the long run than the debt management company charges in fees. And since a debt management plan is an informal agreement, they’re free to change their minds.

Debt Management Solutions

LONDON, UNITED KINGDOM–(Marketwire - Feb. 17, 2009) - Responding to new figures from the Bank of England showing that the most common types of savings accounts now offer the lowest rates on record, debt management company Gregory Pennington has advised consumers that savings should still be a very important aspect of most people’s finances, and added that they should not be discouraged by low interest rates.

In February, the Bank of England made the unprecedented decision of cutting its base rate to 1% - the lowest in its 315-year history. It was a further attempt to encourage lenders to offer loans and mortgages at lower rates, as well as an incentive for consumers to spend rather than save, which would increase cash flow within the economy.

However, the decision to cut the base rate was met with some criticism from a number of analysts, who claimed that base rate cuts are no longer an effective means of combating the economic downturn. They argued that base rate cuts would only serve to disadvantage savers, since the interest rates on offer are now significantly lower than the rate of inflation - meaning that savers are ‘losing’ money in real terms.

Take the following example: if a saver puts Pounds Sterling 5000 into a savings account with a 1.5% interest rate, they will make an additional Pounds Sterling 75 interest in a year. In the meantime, a 3.1% inflation rate would mean that the average price of goods would rise at more than double that rate - so in terms of purchasing power, the savings would be worth less after a year.

A spokesperson for Gregory Pennington said that although there has been some concern raised about low interest rates, it should not prevent people from making savings.

“The way the fall in interest rates has been reported almost seems to suggest that it is no longer worth making savings, but that is not the case,” she said. “A large proportion of people who put money aside are not doing so to make more money - they are doing it because they want to save their money for a later date. In this sense, savings would even be worthwhile if the interest rate was 0%.

“Even when interest rates are high, it would take a very large amount of money to make the interest a significant incentive. We advise consumers that savings should be an integral part of most people’s finances, since they provide a financial ’safety net’ that can be a lifeline if any financial emergencies arise.

“The only situation in which savings should not be a high priority is if the consumer is struggling to repay debts. Debt repayments should always be top priority, since debts often grow a lot more quickly than savings do. The long-term consequences of not repaying debt also tend to outweigh the benefits of saving.”

The spokesperson added that anyone in trouble with their debts should speak to their lenders, as well as a professional debt adviser, in order to discuss their options.

“In many cases, lenders will agree alternative repayment plans, or brief repayment holidays, to let the borrower get their finances back on track,” she said. “If that doesn’t solve the problem, then it may be time to speak to an expert debt adviser for a more specific debt solution.

“There are a number of ways borrowers can manage their debts, such as a debt management plan, debt consolidation loan or an IVA (Individual Voluntary Arrangement). Getting debt help from an expert adviser can help borrowers to establish the best debt solution for their needs.”

Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

Useful resources:

Gregory Pennington homepage: http://www.gregorypennington.com/

Debt help page: http://www.gregorypennington.com/debt-help.asp

Debt management page: http://www.gregorypennington.com/debt-management.asp

Lower availability of mortgages may have hampered the housing market on both sides of the Atlantic, but reductions in the cost of both mortgages and property could re-ignite interest in buying a home, experts say.

In the US, ‘existing-home sales’ recently increased unexpectedly by 6.5%, according to the National Association of Realtors (NAR), taking the seasonally adjusted annual rate from 4.45 million in November to 4.74 million in December.

“It appears some buyers are taking advantage of much lower home prices,” stated Lawrence Yun, NAR chief economist, while NAR President Charles McMillan said “With historically low mortgage interest rates, flexible sellers, a large inventory, and homes that are selling for less than replacement construction costs in much of the country, buyers who’ve been on the fence should take a closer look at today’s market.”

Read more

More information on mortgage rates can be found here.

I had always thought that I was secure with my financial planning and that I would never require a loan. However I was proved wrong when I suddenly required some money to pay for an important business deal. Forget about visiting a bank.

I’ve visited them many a times in the past whenever I needed a loan and each experience is painfully etched in my heart. I would rather drop the business deal than visit the bank for a loan.

I am blessed to have friends like the one who suggested me to try out one of the various loan-providing companies out there on the net. Not only did I secure my business deal & increase my profits, I also saved in the long run by paying a lower percentage of interest. Did I forget to mention that the loan application was hassle-free?

I was never a financial wizard but an excellent adman. Most of my free time was spent in writing out fancy ads… generally for free. My friends used to take advantage of my skills, but they never paid me my due. I was so busy with my work that I never bothered to think about the loans I was taking every few months. One fine morning, while studying my accounts, I was aghast.

There were so many outstanding debts that I could not believe my eyes. I had to mortgage a part of my house to help pay off the outstanding debts. I should have become wary at that point of time itself, but I did not. The end result was that I started taking debts again. In the meantime, due to my lack of concentration, I had to leave my regular job. I have enough confidence in myself to start my own work, but how to get the money? Browsing the net for a few moments has provided me with the solution.

There are some agencies that can help. They will remortgage the part of my house that still belongs to me and use that to pay me the sum I need. This remortgage agency is really cool. Just one call to their toll free number was all that was required. Their representative is visiting me tomorrow and within a few days I shall be able to start my new work and pay back all my dues.