On average, the money earned by Brits over the first 50 days of the year was just enough to cover the interest payments on their debts for the year, according to Unbiased.co.uk.

That is the equivalent of one day’s wages a week going towards servicing debts – for many this is just too much. It’s hard enough to cover the interest payments let alone work towards paying the debt off. Unbiased says figures show that credit card debt has increased by just over £4bn in 2009, reached over £54bn because people just can’t pay it off.

For some people the answer may lie in secured consolidation. By using your home to pay off your unsecured debts you are able to reduce all your outgoings to just the one payment. This means less outgoings from one month to the next and more importantly it means the borrower has time and space to pay off their debt, not just manage it.

Karen Barrett, chief executive of Unbiased.co.uk says: “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.”

SOURCE: Unbiased.co.uk, 19/02/10

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