British borrowers with credit card and loan debt will work an average of seventy days this year to repay interest on their borrowings, a report claims.

Unbiased, an indedendent financial advisor website, claims that workers toil until March 10th to service the interest on unsecured borrowing. This is before any reduction in the actual amount owed. This is a big increase from the 2007 ‘Debt Freedom Day’, which was 1st February.

This is due to an increase of 10% in personal debt and also an increase of 6% in the interest charged - the amount owed in personal loans has jumped to £9.8 billion this year. Interest charged on personal loans has risen by 0.5%, meaning borrowers now face a total interest bill of around £1.5 billion.

The savings products manager at Co-operative Bank, Scott McPhail, has revealed that Britons spend 13 billion hours a year worrying about debt. He said, “It is worryingly clear from the research that the vast majority of UK adults are deeply concerned about their finances, with rising levels of debt and inadequate saving provisions responsible for countless sleepless nights nationwide.”

This entry was posted on Monday, March 10th, 2008 at 10:51 am and is filed under General Debt News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.