Finance Choices
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."
Click here to find a cheap UK credit card
Click here to find a cheap UK loan
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."
Click here to find a cheap UK credit card
Click here to find a cheap UK loan
posted by Barbara Gordon at 8:35 AM
Today is debt freedom day
4 Comments:
I wonder when debt freedom day is in the United States? Given the vast amount of debt we have its probably sometime in the fall!!
That's amazing - it takes over a month for the average earner to pay off the interest on the average debt!
According to the Insolvency Service there was a 57.1% increase in individual debt in the last quarter of 2005. In this same period of time the number of actions presented by banks and building societies increased to the highest level since the end of the last major recession in 1993.
Is this all because we are getting careless when it comes to our money management or is bankruptcy starting to be seen as the 'easy way out' following changes to the rules a few years ago?
Someone clearly forgot to tell MY credit card company that today is debt freedom day!
Anon, unfortunately, the Tax Foundation provides no figures for Debt Freedom Day in America, when the immense deficits from Bush's tax cut and Iraq escapades are eventually retired. I suspect
it's not in my lifetime.
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