Interest on debt envelops monthly wage
Published On 1 February 2007
Latest figures released by the website Unbiased.co.uk reveal that it takes one month's earnings to pay off the interest on the average UK consumer's credit and loan debt.With the interest on debt averaging £2,012, a person on the average salary of £23,556 will have earned just enough over 31 days to pay off the interest rather than reducing the debt itself.
Though levels of personal debt have fallen from £62 billion in 2004 to £58 billion in 2006, these latest figures show the extent to which the UK continues to rely upon borrowed money, with 49 pence being borrowed for every pound being spent.
The website has taken the step of declaring Thursday February 1st to be debt Freedom Day and is encouraging UK borrowers to use this day to assess their financial situations.
David Elms, the chief executive of Unbiased.co.uk, said: "Although Debt Freedom Day is of course a hypothetical point in the financial calendar, it does serve a real purpose and should be seen as wake up call to those who carry personal debt."
