Today is Debt Freedom Day

It takes the average earner 35 days to pay off the £2,350 average level of interest on credit cards and loans.

That makes Monday February 6th 'Debt Freedom Day', IFA Promotion reveals.

Although Debt Freedom Day falls four days earlier this year, as a result of the number of credit cards and personal loans held by UK residents falling from 62.3 million to 59.4 million, it still takes over a month for the average UK consumer to pay off the interest on their debts.

IFA Promotion says this is reflective of the UK's continued inability to take control of their finances.

"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," said IFA Promotion chief executive David Elms.

Personal debt has fallen from £63 billion to £59 billion in the last year, but there has still been a 55 per cent rise since 2000 when personal debt stood at £38 billion.

However, some comfort should be sought in the recent steady reduction in personal debt from £3,200 in 2004, when Debt Freedom Day fell nine days later on Sunday February 15th.

Mr Elms added: "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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