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We spend the first 50 days of our salaries this year just paying off the interest on our debts

• Saturday 20th February marks this year’s Debt Freedom Day
• Credit card debt has increased by £4billion to over £54billion
• Personal loan debt has remained constant over the past year, despite the banks tightening their lending criteria

Saturday 20th February marks this year’s Debt Freedom Day, according to new research by Unbiased.co.uk, the professional advice website*.  As a nation we will spend the first 50 days of 2010 just to earn enough money to pay off the interest on our debts**.  This means that so far we haven’t even started re-paying the actual debt itself!

Unbiased.co.uk’s figures highlight that credit card debt has increased by just over £4billion in 2009.  It is now reached over £54billion.  Personal loan levels in the UK have remained constant from last year, despite the increased levels of repayment and restrictions being placed on consumer lending by the banks.  This suggests that more loans are now running their full terms.

With the base rate still at a historic low of 0.5%, now is a good opportunity for people to service their debt and get back in control of their finances. 

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 of 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.

“Tackling your debt doesn’t have to be a daunting task and you don’t have to do it on your own.  With interest rates at an all time low, now is a better time than ever to action. Seeking independent financial advice will make sure you are making the right choices on your finances. An IFA can help you to make your money work as hard as possible and that you balance your finances to repay back any debt as quickly as possible.  You can carry out a free and confidential search to find an independent financial adviser near you by visiting Unbiased.co.uk.”

Graph to show the levels of credit card and personal loan debt since 2007

ENDS

* Independent analysis of the most recent official figures conducted by independent agency, RAKM, on behalf of IFA Promotion.  Data sources are Bank of England, British Bankers Association, ABI, AIC and IMA.  With detailed queries on this analysis call Paul Hersey on 01737 342863

** Analysis includes personal loans and credit card debt only, does not include mortgages or equity release

For further information on Unbiased.co.uk, the professional advice website pleases contact:

Sign up to Unbiased.co.uk’s unique Professional Connections service, allowing IFAs, mortgage brokers and solicitors to find and link up with other professional advisers across the UK to expand their current business network.

For expert commentary or case studies from over 150 media-friendly IFAs, journalists should visit www.unbiased.co.uk/bluebook to search the Blue Book Media IFA database.

Top tips for journalists when using Blue Book online:

1.         List and store all your IFA contacts in one place.  As well as having access to the whole Media IFA database on the Blue Book, you can also separately list your favourite Media IFAs.  You can add confidential, personalised post-it notes with extra details to Media IFA profiles.  These will be saved and always appear every time you log back into your account.

2.         Email broadcast Media IFAs.  The Blue Book allows you to email individual favourite Media IFAs for personal commentary or alternatively email a group of your favourite Media IFAs for a collection of opinions on a topic.  You can use the Blue Book online to conduct a straw poll on a specific topic for instance. 

3.         Online coverage generated by Media IFAs.  Each Media IFA profile contains links to their most recent online coverage.  This allows you to see what topic Media IFAs have been commenting on recently, allowing you to make a more informed decision as to which Media IFA you wish to speak to.

4.         Each Media IFA has a star rating.  This is calculated by how many journalist’s favourites lists each Media IFA appears on.  The more journalist’s favourites lists they appear on, the higher their star rating.  Look at the ‘top rated’ list to find out which Media IFA has the highest star rating.  

5.         Journalist recommendations.  The Blue Book gives helpful suggestions as to which Media IFAs other journalists have on their list of favourites.  Each Media IFA profile has suggestions as to other Media IFAs you may find useful. 

6.         Broaden out your contact list of Media IFAs.  Overall, the Blue Book online is designed to help you widen the pool of Media IFAs you can contact for commentary or help with articles you are writing.  Sign up to the Blue Book now in order to take advantage of all these features. 

Notes to Editors

Unbiased.co.uk, the professional advice website

Unbiased.co.uk is the free and confidential UK-wide search service matching consumers with the most appropriate local professional advisers for their needs.  In 2008, Unbiased.co.uk fulfilled over half a million searches for local, professional advice. 

The portal currently houses three professional advice searches: ‘find an IFA’, ‘find a mortgage adviser’, and ‘find a solicitor’, and is inviting accountants to sign up for its ‘find an accountant’ service.  These searches enable consumers to find relevant professional advisers by postcode, area of specialism and payment method, amongst other options. 

IFA Promotion, the organisation behind Unbiased.co.uk, is now in its 20th year, and was set up to promote the benefits of independent financial advice to the consumer. 

Unbiased.co.uk’s product provider sponsors

Registered Office: Unbiased.co.uk is the consumer brand of IFA Promotion Ltd, 90 St. Vincent Street, Glasgow G2 5UB. Registered in Scotland: No. 114606