Brits ‘working just to pay interest on debts’

Britons have been working all year just to be able to pay the interest on their debts, it has been suggested.

Figures unveiled by Unbiased.co.uk have found that the population of the UK has worked for the first 83 days of 2009 and only earned enough money to cover interest payments, meaning that the actual debt is not even reduced.

It comes as Debt Freedom Day is held across the country to highlight the money problems faced by many people in Britain.

Unbiased.co.uk chief executive David Elms said that the event will “hopefully spur people into action to do something about their debts”.

He noted that tackling such matters can be a “daunting” task, but added that borrowers can be aided by debt help as well as the current low level of interest rates.

Mr Elms urged individuals to seek advice in order to ensure “debt is being repaid as quickly as possible”.

One method that may help people with debt management is prepaid credit cards, Peter Harrison from moneysupermarket.com has claimed.

By Jamie Price