Monday 6th February is Debt Freedom Day

Confidentially search for details of independent financial advisers close to where you live or work from around 9,000 IFA locations UK-wide.

§         Debt Freedom Day falls four days earlier than last year, but it still takes 35 days’ pay just to clear the interest on our credit card and loan debt

It would take the average UK earner 35 days’ solid pay just to clear the £2,350 interest on the average level of credit card and loan debt, independent analysis of official figures today reveals*.  Thus Monday 6^th February (the 36^th day of 2006) has been dubbed ‘Debt Freedom Day’ by IFA Promotion, the organisation promoting the benefits of independent financial advice.

And while the number of credit card and personal loans has declined since last year (from 62.3 million to 59.4 million), the fact that it takes the average earner over a month to pay off just the interest on their debts is reflective of the UK’s continued inability to take control their finances.

Indeed, IFA Promotion has calculated Debt Freedom Day for the third year running to highlight the extent of the UK’s personal unsecured debt burden. In the last year, UK personal debt has fallen from £63bn to £59bn, but there has still been a 55% overall rise since 2000**. However, we should take comfort in the fact that the average amount of interest paid on debt per person is steadily reducing year on year (£2,300 compared with £2,400 in 2005 and £3,200 in 2004), meaning that Debt Freedom Day falls four days earlier than last year and nine days earlier than the year before***

David Elms, Chief Executive of IFA Promotion comments: “Debt Freedom Day is of course a hypothetical date, but it serves to demonstrate that the UK consumers really need to take better heed of warnings and take charge of their finances. Whilst a reduction in the number of credit card and personal debts is unquestionably great news, the only way to control debt and increase saving power is to adopt careful budgeting.  An independent financial adviser can help you focus on your finances and improve your spending, borrowing and saving behaviour.”

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. For a copy of the guide, and for details of a local independent financial adviser, consumers can call 0800 085 3250 or visit www.unbiased.co.uk/getsaving.

-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.

**When UK personal debt totalled £38bn

***2005 – Thursday 10^th February; 2004 – Sunday 15^th February

For further information please contact:

David Elms                                               Chloe Mann/Holly Godden

Chief Executive                                        Lansons Communications

IFA Promotion                                          07976 356 223/ 07976 736 858

020 7833 3131

    For expert comment or case studies from over 200 media-friendly IFAs, journalists should call IFA Promotion’s 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 around 9,000 firms of independent financial advisers across the UK and is sponsored by 32 leading financial institutions. In the past 12 months, over 530,000 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 consumer’s 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 Promotion’s sponsors

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