Get Saving! Debt Freedom Day

FOR IMMEDIATE RELEASE                                        Thursday 10th February 2005

 

THURSDAY 10th FEBRUARY IS DEBT FREEDOM DAY

         40 days pay just to clear the interest on our credit card and loan debt

         Credit card and loan debt has risen by two thirds (25bn) since 2000

         Last years Debt Freedom Day fell five days later - 15th February

 

It would take an average earner 40 days just to pay off the 2,400 interest on the average level of credit card and loan debt, independent analysis of official figures today reveals*.  Thus Thursday 10th February (the 41st day of 2005) has been dubbed Debt Freedom Day by IFA Promotion, the organisation promoting the benefits of independent financial advice. More people than ever will be welcoming Debt Freedom Day as the number of credit card and personal loan debts has risen by 13% from 8.7million last year to 9.5million this year.

 

IFA Promotion has calculated Debt Freedom Day for the second year running to highlight the huge escalation in the UKs personal unsecured debt burden over recent years from 38bn in 2000 to 63bn in 2005 - a rise of 65%.  However we can take some comfort in the fact that last year Debt Freedom Day fell five days later on the 15th February, showing the average amount of interest paid on debt per person is actually less this year (2,400 compared to 3,200 in 2004).  

 

David Elms of IFA Promotion commented, Although Debt Freedom Day is a hypothetical date it illustrates the very real point that, as a nation, we need to take control of our finances. The simple answer to reducing debt is careful budgeting, looking at our income and outgoings, and how were managing them.  An independent financial adviser can help you focus on your finances by talking through the options that best suit your individual needs.

 

To help consumers take control of their spending habits, reduce their debt burden and convert some of their outgoings to savings for the future, IFA Promotion has produced a free guide, Join the Savings Revolution, which looks at how to start budgeting.  More information, along with details of local independent financial advisers, is also available at www.unbiased.co.uk/getsaving or by calling 0800 085 3250.

 

-ends-

 

* Research and analysis conducted by independent agency, RAKM, on behalf of IFA Promotion.  Data sources are ONS (average earnings), Bank of England (unsecured debt levels), industry data and consumer research (number of loans and credit cards held).  With detailed queries on this analysis call Paul Hersey on 01737 216 940.

 

For further information please contact:

 

David Elms                                               Liz Willder/Chloe Merriman

Chief Executive                                        Lansons Communications

IFA Promotion                                          020 7294 3677 / 020 7294 3681

020 7833 3131

 

    For expert comment or case studies from over 200 media-friendly IFAs, journalists should call IFA Promotions Media Services hotline on 020 7294 3682 or search online in Media Services at www.unbiased.co.uk

 

1.  Independent Financial Adviser Promotion

 

IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public.  It represents over 10,000 firms of independent financial advisers across the UK and is sponsored by 31 leading financial institutions. In 2004, over 440,000 consumers and businesses used IFA Promotion to find local independent financial advice.

 

IFA Promotion believes Independent financial advice should be:

 

        Affordable.  The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.

 

        Convenient.  IFAs should be available in the location of the consumers choice, wherever they live in the UK.

 

        Transparent.  It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.

 

2.      Independent Financial Adviser Promotions sponsors

Abbey

National Savings & Investments

AXA Life

New Star Investment Funds 

Bright Grey

Norwich Union Life

BUPA Health Services

Old Mutual Asset Managers (UK)

Canada Life Ltd

Prudential

The Childrens Mutual

Scottish Equitable Plc

Clerical Medical Investment

Scottish Life

DWS Investments Ltd

Scottish Life International

Friends Provident

Scottish Widows Plc

GE Life

Selestia Investments Ltd

GMAC Residential Funding

Skandia UK Group

INVESCO Fund Managers Ltd

Southern Pacific Mortgage Limited

Legal & General

Standard Life Assurance Company

London Mortgage Company

Webline Limited

Lincoln Financial Group 

Zurich IFA Group

Mortgage Express

 

 

 

 

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