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<title>PRCompass / thinkmoney / Hot Press Releases</title>
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<pubDate>Thu, 04 Sep 2008 15:26:19 -0700</pubDate>
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<title><![CDATA[Unexpected rise in retail sales not a sign of market recovery, say Gregory Pennington]]></title>
<link>http://www.prcompass.com/Financial/Unexpected_rise_in_retail_sales_not_a_sign_of_market_recovery_say_Gregory_Pennington/</link>
<comments>http://www.prcompass.com/Financial/Unexpected_rise_in_retail_sales_not_a_sign_of_market_recovery_say_Gregory_Pennington/</comments>
<pubDate>Thu, 04 Sep 2008 15:26:19 -0700</pubDate>
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<category>Financial</category>
<guid>http://www.prcompass.com/Financial/Unexpected_rise_in_retail_sales_not_a_sign_of_market_recovery_say_Gregory_Pennington/</guid>
<description><![CDATA[Responding to the recent news that retail sales growth enjoyed an unexpected rise in July, debt management company Gregory Pennington (http://www.gregorypennington.com) has warned that this should not be taken as a sign of market recovery, and that consumers should still be looking to protect themselves against a potential downturn at some point in the future.Despite the Office of National Statistics' predictions that retail sales growth would fall by around 0.2%, July in fact saw a rise of 0.8% compared to the previous month - a figure which, according to a Gregory Pennington spokesperson, may prompt some to &quot;underestimate the danger that lies ahead for the economy&quot;.The figures follow June's sales growth actually falling by around 4.3% - the largest decrease for several years. But the Gregory Pennington spokesperson says that this simply reflects the volatile nature of the retail market. &quot;It's important to look at the bigger economic picture,&quot; he says. &quot;Inflation is at a 16-year high, costs of living are increasing, and unemployment is rising - all of which are likely to affect the retail market negatively in the long run - but the full impact is yet to be seen.&quot;The retail market has seen several years of fluctuating growth - even when the economy was very strong. The rises and falls are rarely any bigger than two per cent, which is minimal in the scheme of things, and is probably coincidental.&quot;June's fall of 4.4% did raise some concerns for the market, but the fact that it's gone straight back up by 0.8% shows that this was just a particularly wild fluctuation.&quot;The spokesperson added that consumer caution is still necessary, highlighted by the recent year-on-year increases in people experiencing debt problems - which can be partly attributed to overly relaxed lending and high consumer spending.&quot;Statistics show that the number of people seeking debt help has been steadily increasing for well over a decade now - with the most distinct rise coming in 2007, when the credit crunch began to hit the economy,&quot; he said. &quot;Since problems with debt tend to filter through over a long period of time, we would expect this pattern to continue well into 2008 and 2009.&quot;Realistically, a continued slump in the retail market would in fact be a good sign for the economy, since it would show that people are taking the economic downturn and risk of getting into debt very seriously, as well as helping to bring down inflation.&quot;The spokesperson went on to say that if people do find themselves struggling in the coming months, they should seek debt help from an expert as soon as possible. &quot;It's looking like the downturn we are facing will be quite severe, and we would expect people with existing debts to suffer more than most - not to mention many people may be forced into debt as money gets tighter,&quot; he said. &quot;If that is the case, it's essential you seek debt help from a professional debt adviser. Lenders and consumers alike will feel under pressure over the next few months, so your debt adviser should be able to help come to an agreement that suits both you and your lender.&quot; <br/><br/>1 Vote(s) ]]></description>
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<title><![CDATA[ThinkMoney.com advises caution over house price predictions]]></title>
<link>http://www.prcompass.com/Financial/ThinkMoney-com_advises_caution_over_house_price_predictions/</link>
<comments>http://www.prcompass.com/Financial/ThinkMoney-com_advises_caution_over_house_price_predictions/</comments>
<pubDate>Thu, 07 Aug 2008 11:57:30 -0700</pubDate>
<dc:creator></dc:creator>
<category>Financial</category>
<guid>http://www.prcompass.com/Financial/ThinkMoney-com_advises_caution_over_house_price_predictions/</guid>
<description><![CDATA[Responding to the recent report from the National Housing Federation suggesting house prices will recover and rise by 25% by 2013, financial solutions company ThinkMoney.com advised existing homeowners to remain optimistic, but warned them not to become complacent about protecting themselves against the downturn in the housing market.The National Housing Federation anticipates further falls in house prices for the next two years - 4.4% in 2008, with a further fall of 2.1% in 2009 - after which prices will begin to recover, rising by 25% by 2013.However, the report itself acknowledges that the figures depend on a a4robust employment market', and warns that if employment and consumer spending levels fall by too much, the housing slump could be more severe than they have predicted.A spokesperson for ThinkMoney.com said: &quot;We would advise homeowners to continue saving well, spending responsibly, and to remain aware of the potential problems facing the housing market. Your financial planning should, as always, be geared towards making sure you are prepared for any problems that could arise.&quot;The report is only speculative, and as with anything, it is very hard to predict what will happen in the next five years. The predictions are essentially a best-case scenario,&quot; she said.&quot;In a sense, it's healthy to be slightly cautious when it comes to money, especially with an important financial commitment like a mortgage.&quot;The spokesperson said that there are a number of ways homeowners can protect themselves. &quot;Savings are the key,&quot; she says. &quot;Falling house prices means that equity tied up in the value of your home is decreasing, so it's wise to try and counteract that by saving money where possible.&quot;This also acts as a buffer if you find the interest on your mortgage payments going up in the next few years, which is quite possible. Without savings to fall back on, mortgage payments could become simply too expensive for poorer families, and that brings the possibility of falling into debt - especially with other costs of living rising so quickly too.&quot;Likewise, it's important to keep an eye on spending and make sure unnecessary purchases are kept to a minimum. Avoid taking out consumer finance loans on expensive goods, as they can become a big financial burden when things get tight,&quot; she continued. &quot;In fact, avoiding any form of personal loans or credit is the best defence against getting into debt.&quot;The ThinkMoney.com spokesperson advised homeowners to remain positive. &quot;Many homeowners will be relatively unaffected by the problems in the housing market, so long as they are willing to stay put,&quot; she said. &quot;A loss in the value of your home only affects you if you are looking to sell, but it still pays to save well in case of emergency. And once the market does recover, you may even find yourself in a better financial situation than you were before all the trouble started.&quot; <br/><br/>2 Vote(s) ]]></description>
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