Financial Counselling Service

Greg Davis
Counsellor Greg Davis Cert PFS

Greg Davis is an Independent Financial Adviser and has spent his entire working life in the Financial Services industry. He is a member of the Chatham Salvation Army Corps and is married with two children.

Greg is experienced in dealing with financial matters and meets people from every walk of life and every station in society during the course of his work. All of them are individuals with their own hopes, dreams, strengths and challenges.

In recent years Greg has become more and more concerned about the difficulties people have in managing money. Many end up in court, getting divorced, not seeing their children again, or even taking their life simply because of money.
Some of the problems are:

Retirement

According to the Prudential one in five pensioners struggle to make ends meet. 17% of pensioners live on under £5,000 a year.

Four out of ten of people still in work have made no pension provision whatsoever.

Money Education / Financial Literacy

15% of the 18 to 24 age group think an individual savings account (ISA) is an iPod accessory, and one in 10 think it’s an energy drink.

According to a Mori poll:

  • Nearly four out of five people do not know that APR refers to the interest and other costs of a loan.
  • Four in ten admit they do not understand mortgages or ISAs
  • One in three say they lack confidence in their financial affairs.
  • One in five do not understand the concept of inflation.
  • Only 30% could calculate 4% interest on £2,000 over two years.
  • Between September and November each year lenders send out at least 100 million unsolicited, but pre-approved credit card application forms.
  • There are now 190 million plastic cards in circulation in the UK.

Servicing Debt

Personal insolvency rates in the UK have reached an all time high. Last year there were a record 43,606 bankruptcies and 16,496 Individual Voluntary Arrangements (IVAs).

PricewaterhouseCoopers (PwC), insolvency experts, looked at 80% of the IVA applications made. 75% of the debtors put down “living beyond their means” as the main reason for being in trouble. Only 20% said they had lost their jobs or had suffered a breakdown in their marriages, two of the events traditionally assumed most likely to trigger personal insolvency.

County Court Judgements (CCJs) against personal debtors in the first half of 2005 rose by 15% to 290,643.

Total UK personal debt

At the end of November 2005 the total UK personal debt was £1,148,000,000,000 (£1,148 Billion), an increase of 10.2% on 2004. Britain’s personal debt is increasing by approximately £1 million every four minutes.

This Financial Counselling service has been set up simply to address the needs of those who don’t have financial advisers, accountants or tax specialists to help them. All the necessary licences are in place and formalities taken care of. Its aim is to help those who have never been taught to budget or save and those whose finances are ruining their relationships and, indeed, their lives. According to Relate, money is the most common cause of arguments between couples (44%). Indeed, a quarter of those in debt are receiving treatment for stress, depression and anxiety from their GP. Behind these startling figures are people who are worried sick, and whose relationships and children are suffering.

Location

This service is operated from The Salvation Army Hall in Church Street, Chatham on an appointment basis. An appointment can be made for a meeting, usually on a Friday afternoon at the hall, or over the telephone if more appropriate.

If you are in need of assistance or just want to know more please contact us.

You may also contact Greg direct at greg@hempsteadfinancialservices.co.uk

Credit Crunch

In view of the credit difficulties facing many people at the present time we recommend use of the links contained within the following advice to provide help should it be needed.

Do you have friends or family in financial difficulty? Maybe you could use the following to help them. Firstly some do’s and dont’s

  • DO be realistic – face up to your true situation and resolve to deal with it – using the help available to you.
  • DO get in touch with your creditors immediately to explain your difficulties.
  • DO give priority to those debts, which may result in you losing your home, fuel supplies or your liberty.
  • DO remember that your creditors prefer small payments regularly rather than larger, irregular payments that you cannot sustain.
  • DO reply to creditors’ letters and court summonses within the time period specified and let them have all the facts.
  • DO keep copies of all correspondence, financial statements, debt schedules etc.
  • DO attend and/or be represented at court hearings and take all relevant correspondence with you, including your current financial statement.
  • DON‘T ignore the problem – it won’t go away.
  • DON‘T give up trying to reach agreement with your creditors even if they are difficult and refuse your initial offers.
  • DON‘T be threatened or bullied into making promises which you cannot fulfil.
  • DON‘T borrow more money to pay off your debts, especially by taking on more credit or store cards.
  • DON‘T be afraid to ask for help.

In addition to the help available via The Salvation Army at Chatham, which includes financial counselling and a supply of literature on related issues, help is also available from these two charities amongst others.

On the Credit Action Website you will find sample letters to send to your creditors, budget sheets, and general financial advice.