Borrowers `had to work first 45 days of 2011 to pay debt interest`

Borrowers had to work the first 45 days of the year just to cover the interest on their unsecured debts, making February 15th `Debt Freedom Day`, according to financial advice website unbiased.co.uk.

The total value of personal loans in the UK reached over £120 billion in 2010, with credit card debts reaching £58 billion, the financial advice website added.

An expert at debt management company Gregory Pennington commented: "A lot of people would be very concerned if they realised how much of their salary is spent on their debt. And let`s not forget that `Debt Freedom Day` only refers to paying off interest - not the actual capital."

Karen Barrett, Chief Executive of unbiased.co.uk said: "With debt levels still remaining at extreme highs there is no better time for people to service their debt and get back in control of their finances.

"Debt Freedom Day is not only to remind consumers of how much of their hard-earned cash they shell out just to pay off the interest alone, but to highlight the need to take action now and seek advice."