Economy still uncertain despite base rate cut
Released
on: October 16, 2008, 8:38 am
Press
Release Author: Gregory
Pennington
Industry:
Financial
Press
Release Summary: Debt management company Gregory Pennington warn
that despite some potentially good news for the economy this week
in the form of a half-point base rate cut and falling prices of
petrol and oil, the risk of a severe economic downturn still remains,
and taking care of personal finances should be made top priority
in the coming weeks and months.
Press
Release Body: Debt management company Gregory Pennington
have warned that the economy remains uncertain, despite a number
of signals suggesting a potential recovery, and have advised anyone
facing severe financial problems to seek professional debt advice
as soon as possible.
The
Bank of England Monetary Policy Committee’s announcement
on Wednesday that the base rate would fall to 4.5% was intended
to calm fears surrounding the money market and increase lenders’
willingness to do business with one another, subsequently increasing
liquidity and boosting the loans market.
A
number of lenders announced cuts to their mortgage rates following
the base rate announcement – which may come as a relief
to prospective homeowners or existing homeowners looking to remortgage,
following many lenders’ reluctance to respond to the last
base rate drop.
Meanwhile,
petrol prices recently fell to as little as 103.9 pence per litre,
while food price growth slowed by 0.2% in September, according
to the British Retail Consortium (BRC) –
arousing speculation that overall inflation has hit its peak and
will now begin to slow.
However,
a spokesperson for Gregory
Pennington commented that while there are encouraging
signs for the economy, there is no guarantee that further difficulty
for the economy can be avoided.
“The
first thing to bear in mind is that while the base rate cut is
intended to help the economy, it was brought in as an emergency
measure,” she said. “The threat of a severe economic
downturn is still looming and there are no guarantees it can be
avoided.
“The
fall in oil and food prices are very encouraging, but both are
heavily affected by external factors, largely outside our Government’s
control.”
The
debt management company spokesperson was keen to emphasise the
continued need to take care over finances and manage debts effectively
in the coming months. “There is still the possibility that
things could get tighter in the near future, so it pays to tackle
any financial issues now, rather than waiting to see what happens
next.
“People
who are struggling with debt are especially at risk, because their
finances are already stretched – and any further rises in
costs of living could make those debts unmanageable.
“As
always, we advise anyone struggling with debt to seek expert debt
advice as soon as possible. Leaving it too late could allow your
debts to grow, which is particularly dangerous if costs of living
do continue to rise.
“There
are a number of debt solutions to help with various financial
situations. A debt
management plan is a flexible means of getting out of debt
in which your repayments are based on how much you can afford,
and in some cases interest and other charges can be frozen.
“Debt
consolidation involves grouping your debts into one convenient
monthly payment, therefore simplifying your finances, and your
debt can also be spread out over a longer period of time, meaning
monthly payments are smaller – although this can mean you pay
more interest in the long run.
“For
more serious debts of over £15,000, an IVA (Individual Voluntary
Arrangement) might be more appropriate. These work by agreeing
with your creditors to make payments based on what you can afford
for a period of five years, after which the remaining debt is
considered settled.”
Web
Site: http://www.gregorypennington.com
Contact
Details: Melanie Taylor
melanie.taylor@gregorypennington.com
0845 056 6480
Pennington
House
Carolina Way
South Langworthy Road
Salford
M50 2ZY
2012
