Monday February 6th has been declared Debt Freedom Day 2006 – the theoretical day after which borrowers have finished paying off the interest on their loans and credit.
It takes an average of 35 days for British borrowers to pay off their average £2,350 in interest payments on credit cards and homeowner loans.
The good news is that in recent years the day has steadily been falling earlier in the year, and now comes around nine days earlier than in 2004, when the average interest payment was £3,200.
The bad news is that that the UK still nonetheless owes £59 billion on personal loans and credit cards, up an astonishing 55 per cent since the year 2000.
David Elms of IFA Promotions said that despite the falling figures, the UK still needed to learn to take its money management more seriously.
“Debt Freedom Day is of course a hypothetical date, but it serves to demonstrate that the UK consumers really need to take better heed of warnings and take charge of their finances,” he said.
“Whilst a reduction in the number of credit card and personal debts is unquestionably great news, the only way to control debt and increase saving power is to adopt careful budgeting.”
© Adfero Ltd