If you live in the UK, you are probably familiar with the name - Gregory Pennington- and know it has something to do with helping people get out of debt. That's what their ads say, right? But do you know how the process of debt management works and what Gregory Pennington can do for you and what it will cost?

What is Gregory Pennington Ltd?

They are one of the largest and one of the 2 most popular debt management companies in the UK. (www.myvesta.org.uk) In business since 1993, the company specializes in consumer debt management. They advertise that they have helped over 100,000 people improve their financial situation and currently have over 25,000 clients. (www.gregorypennington.co.uk)

They are a private limited company that has an overall turnover of ?16.1 million for the current year, with an operating profit of ?2.3 million for the current year. Their profit has increased 460% over the past 5 years, so they are obviously doing well. (www.alertresearch.co.uk) The company has approximately 450 employees and is headquartered in Manchester.

What services does Gregory Pennington provide?

The major service they provide is debt management for consumers. This is achieved by working with consumers and credit card companies or other debtors to lower interest rates and minimum payments .This is not the same as a consolidation loan, where all loans are combined into one payment. With a debt management program, you pay a set amount per month to the management company and they arrange payments to all your creditors.

The monthly payment will include a management fee of approximately 15% of the payment total and the first payment does not go to the creditors, but to Gregory Pennington as a fee for setting up the payment plan, making arrangements with creditors and providing you with a personal financial officer.

In addition to debt management, they also provide services such as setting up managed bank accounts and IVAs (individual voluntary arrangement). (www.gregorypennington.com)

Who needs Gregory Pennington's services?

A surprising number of people have run into difficulties with credit card debt. Credit cards have become much more easily available in the past decade or so. There are now over 1300 different credit cards available in the UK, as opposed to 1 in 1971.(www.debtandyou.co.uk) The British consumer debt total is now over ?1 trillion, with an average debt of ?4,109 per adult (excluding mortgages). (www.creditaction.org.uk)

The National Association of Citizens Action Bureaus said consumer debt was the most common problem brought to them, with over 700,000 cases in 2005, an increase of 74% since 1996. (www.uk.biz.yahoo.com)

Gregory Pennington offers free consumer advice online through the website Debt and You Online (www.debtandyou.co.uk). This website provides information on types of debt, possible solutions and an online budget planner to determine if you may need debt management services.

What are the benefits of dealing with Gregory Pennington?

Gregory Pennington has a number of years of experience dealing with debt management and is familiar with credit card companies, therefore they may be more successful than an individual in negotiating lower interest rates or minimum payments. They also have trained financial advisors who can work with you in setting up a realistic repayment plan that will still allow you enough money to live on. They will stop collection calls from creditors by communicating with the creditors on your behalf, and handle any mail from creditors. They will provide you with a personal financial manager who can answer your questions at any time or adjust the program due to a change in circumstances. They will keep your information confidential and not make judgments about you or your situation. As they say - Gregory Pennington is not here to judge you, simply to advise on a practical solution that's best for you.- (www.gregorypennington.co.uk)

Are there any drawbacks to dealing with Gregory Pennington?

Dealing with any debt management company may extend your period of repayment, as payments are lowered and spread out over time and therefore, you may end up paying more interest in the end. All commercial debt management companies will also include a fee for the service. If you are not comfortable with this plan, there are a number of nonprofit or charity organizations that provide credit counseling or services, such as the Citizens Advice Bureau(www.nationaldebtline.co.uk) or the Consumer Credit Counseling Service (www.cccs.co.uk)

Customer testimonials for Gregory Pennington

There are apparently quite a few satisfied customers of Gregory Pennington's services, as there are numerous testimonials on their website, including comments such as:

- Thank you very much for looking after me and getting me out of debt. I would recommend you to anyone. - Mr D.K.
- You can't possibly realize the relief that your company has brought me.- -Ms. J.D.
- Thanks to all the team who have helped me over the past 4 years. I could not have done it without you. - Miss L.B.(www.gregorypennington.com)