Latest Debt News
More than a month to pay back debts
06/02/2006 16:24:00
The average UK earner would require 35 consecutive days to pay off all the debts they owes, according to IFA Promotion.
As a result, the organisation is declaring February 6th as 'Debt Freedom Day', the day when the average earner can pay off the £2,350 owed from credit cards and personal loans.
This actually marks an improvement from previous years; in 2004 total debt was £3,200 which took 44 days to pay off and in 2005 it was £2,400 and took 39 days to pay off.
But even though personal debt has dropped from £63 billion to £59 billion in the last year, the level of debt remains 55 per cent greater than at the start of the decade.
David Elms, chief executive of IFA Promotion, said: "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.
"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."
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