Debt management company Gregory Pennington has advised borrowers who find themselves stuck in a 'cycle' of debt to talk to an expert debt adviser and find a solution that could help them regain control of their finances.
The comments are in response to research by moneysupermarket.com, which found that one in ten UK adults are permanently overdrawn - that is, their monthly earnings don't fully cover their overdraft debt.
An expert at Gregory Pennington commented:
"Anyone who can't get out of their overdraft, even after being paid, is likely to be in a serious situation. Interest rates and other charges on overdrafts often exceed typical credit card rates, and for people who never get out of the red, this could mean being charged every month.
"This research addresses those who are permanently overdrawn, but it's likely that there are many more who always end the month overdrawn and can't quite break that cycle. This too could cost them a lot of money in interest and charges over time.
"Ideally, borrowers should be making reasonable payments towards their debts every month, to help reduce the balance and the amount of interest they are charged. If you can't do that, it's a good idea that you talk to a professional debt adviser about ways of regaining control.
"There are a number of debt solutions that can help borrowers to repay their debts at a pace they can manage. It could take time, but it at least means they are able to break free from this 'cycle' and gradually pay off what they owe."
Gregory Pennington currently helps over 50,000 people repay their debts through its Debt Management Plan. The company is part of the Think Money Group, one of the UK's leading financial solutions providers.
Gregory Pennington is a founding member of DEMSA, the Debt Managers Standards Association, which was established in 2000 'to promote good practice in the debt management industry'. DEMSA's code of conduct has received Office of Fair Trading approval, under its Consumer Codes Approval Scheme.
For more information, visit the Gregory Pennington website at http://www.gregorypennington.com/
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