Debt Freedom Day - a month earlier than last year

The `time people spend repaying their debts` has fallen by more than a month, the Telegraph reports.

Debt Freedom Day - `the first day of the year that Britons have paid off all the interest on their credit cards and personal loans` - fell on 20th February this year. This is more than one month earlier than the date for 2009, when the average borrower reached 25th March before they had earned enough money to pay the annual interest charged on their debts.

The news comes despite credit card debt rising by £4bn last year, according to figures from financial website Unbiased.co.uk.

Karen Barrett, Chief Executive of Unbiased.co.uk, said: "It may come as a shock that Debt Freedom Day actually only marks the day when we have paid off the interest on our debts, rather than the actual debt itself.

"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."

---

Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.