Millions driven into debt, but debt management can help
Released
on: July 17, 2008, 1:38 am
Press
Release Author: Gregory
Pennington Ltd
Industry:
Financial
Press
Release Summary: 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.
Press
Release Body: Commenting on proposed changes to vehicle excise
duty, debt management company Gregory Pennington
(http://www.gregorypennington.com)
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.”
Web
Site: http://www.gregorypennington.com
Contact
Details: Melanie Taylor
Head of Corporate Relations
Tel: 0845 056 6480
Email: melanie.taylor@gregorypennington.com
Gregory
Pennington Ltd.
Pennington House,
Carolina Way,
South Langworthy Road,
Salford
M50 2ZY
2012
