IFA Promotion names Debt Freedom Day

Mon, 06 Feb 2006

Despite a decline in the number of credit cards and personal loans in the UK over the last year, average Britons still need more than a month to repay the interest on their debt, a new report shows.

The typical interest on individual credit card and personal loan debt amounts to £2,350, it was found by IFA Promotion, the organisation that promotes the benefits of independent financial advice.

It would take those on an average income 35 days to repay this interest, IFA Promotion states.

Therefore, the organisation has named the 36th day of the year – today – Debt Freedom Day.

It points out that personal debt has dropped to £59 billion from £63 billion over the last 12 months, but notes that this is still 55 per cent higher than in 2000.

David Elms, the organisation's chief executive, says Debt Freedom Day is a "hypothetical date", but it demonstrates the importance of Britons heeding warnings over debt.

"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," he comments.

Mr Elms says an independent financial adviser can help customers focus on their finances and help improve "spending, borrowing and saving behaviour".

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