Saturday 20th February marks this year's Debt Freedom Day, according to new research by Unbiased.co.uk, the professional advice website.
The research says that, as a nation, we will spend the first 50 days of 2010 just to earn enough money to pay off the interest on our debts, although Unbiased.co.uk is quick to point out this means that we people have yet to repay the actual debt itself.
Unbiased.co.uk’s figures highlight that credit card debt has increased by just over £4 billion in 2009 and has now reached over £54 billion.
Personal loan levels in the UK have remained constant from last year, despite the increased levels of repayment and restrictions being placed on consumer lending by the banks. This suggests that more loans are now running their full terms.
With the base rate still at a historic low of 0.5%, now is a good opportunity for people to service their debt and get back in control of their finances, says Unbiased.co.uk.
"It may come as a shock that Debt Freedom Day actually only marks the day when we have paid of the interest on our debts, rather than the actual debt itself, said Karen Barrett, Chief Executive of Unbiased.co.uk.
“Debts can quickly mount up to a considerable sum and this date demonstrates that debt is something that we need to take control of and actively manage.
"Tackling your debt doesn't have to be a daunting task and you don't have to do it on your own. With interest rates at an all time low, now is a better time than ever to action.
“Seeking independent financial advice will make sure you are making the right choices on your finances. An IFA can help you to make your money work as hard as possible and that you balance your finances to repay back any debt as quickly as possible.”
