Working to clear card debt
February 1, 2007 by admin
Filed under News, News-Credit-Cards
The average Briton slaving his or her way through January, struggling to clear the Christmas debt hangover, gets meagre returns for their pains, Unbiased.co.uk has claimed.
If we worked for 31 days solidly, we could clear the interest on our credit card and loan debts, but not the debt itself, the financial advice service reveals.
Since average UK earnings total £23,556 per annum, a January pay cheque would be just enough to clear the £2,012 interest gathered on the average British consumer’s total personal debt.
But Unbiased.co.uk has declared February 1st ‘Debt Freedom Day’, hoping to inspire consumers to work on eliminating the debt itself in the coming year.
This date should serve as “a wake up call to those who carry personal debt”, Unbiased’s chief executive David Elms emphasised.
“The real headline will come when official figures show people controlling their spending behaviour and increasing their saving power,” Mr Elms added.
For every pound saved, Britons are still borrowing 49 pence to fund their lifestyles.
Average household debt in the UK at the start of 2007 stood at £8,765 excluding mortgages, according to Credit Action statistics.
