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Gregory Pennington

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Debt Management Plans Could Make Problem Debts More Manageable


Salford, United Kingdom, December 24, 2009 --(PR.com)-- Debt management company Gregory Pennington welcomed official statistics showing that consumers repaid more debt than they borrowed for the fourth consecutive month in October, adding that anyone having trouble repaying their debts should not hesitate to seek expert debt advice.

For people who simply cannot afford their existing debt repayments, a debt management plan could help, the company commented - but borrowers should explore all their options before making any decisions.

Borrowers repaid almost £600m more consumer credit than they borrowed in October, according to the Bank of England's 'Lending to individuals' November report. It was the fourth consecutive month that net consumer credit borrowing had fallen.

The net repayment rate was three times as high as experts had estimated, and twice as high as the level seen in the previous month. Consumers now owe a total of £228bn in consumer credit, according to the figures.

Meanwhile, secured borrowing (i.e. mortgages and secured loans) grew by £0.9bn - the third consecutive month in which borrowers had taken out more in secured credit than they had repaid.

A spokesperson for Gregory Pennington said: "The continuing pattern of borrowers repaying more debt than they are taking on is an encouraging sign in the present economic climate. The figures are likely to reflect the reduced availability of credit as well, but it still stands that a lot of borrowers are taking steps to reduce their debts.

"Carrying large amounts of debt in the current climate can be a big risk, because if the borrower becomes unemployed or their income falls for any other reason, they could find themselves unable to repay their debts - which is where the real problems can start.

"Borrowers who find themselves in this situation should speak with an expert debt adviser as soon as the problem starts. A debt adviser will be able to recommend an appropriate debt solution based on the individual's circumstances.

"For people who find their existing debt repayments unaffordable, a debt management plan could help them to reduce their payments to a manageable level - although they will still need to commit to regular payments.

"If the borrower can't do this, or if they can't see themselves being able to repay the debt in full, then another debt solution such as an IVA (Individual Voluntary Arrangement) or bankruptcy may be more appropriate.

"All of these debt solutions have their advantages and disadvantages, so it's important that the borrower has everything explained to them before they go ahead."
Contact Information
Gregory Pennington
Melanie Taylor
0845 056 6480
Contact
http://www.gregorypennington.com/

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