Wednesday 25th of March 2009
It has taken 83 days for consumers to earn enough money to pay off the interest owed on debts, figures have revealed.
According to Unbiased.co.uk, today (Wednesday March 25th) is the first day of the year that consumers are able to start repaying debts themselves.
The site noted that interest rates have fallen but that those still struggling to cope with their debt should seek advice, which could include IVA help, in order to identify ways to pay if off.
Its data showed that personal loans in the UK increased by over £1.6 billion in 2008, while equity release loans were up £6.5 billion, contributing to the extended period of time it is taking to pay off interest.
As a result, Unbiased.co.uk has declared today Debt Freedom Day in order to highlight the proportion of income that is being paid on interest.
However, those who enter an IVA because they have debts over £15,000 will find that interest charges by creditors are frozen.
MoneyExpert.com recently noted that debt management is becoming an increasing concern for consumers in various ways, as interest rates on savings have fallen, while reductions are not being passed on to those with loans.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Bills causing you a headache? IVA answers may provide a solution
