Brits 'work for 2 months' to pay off interest

Interest on credit cards and loan repayments eat up as much as two months' salary, according to new figures.

The interest payable on debts has taken 70 days for many people in the UK to pay off and this does not take into account the amount of money owed on the debt itself, according to Unbiased.co.uk.

David Elms, chief executive of the financial adviser search service, explained that today (March 10th) being Debt Freedom Day reflects the dire economic situation in the UK, as it marks the day when people actually start paying off their debt instead of just the interest.

"Compared to last year we spend almost two months longer this year to pay off the interest of our borrowings and this doesn't event take into account mortgage costs," he said.

"In the current economic climate it has never been more important for people to realise just how much it costs to service their debts and to ensure they have adequate funds available to do so," Mr Elms added.

People struggling to pay off their debt may consider shopping around for the best loans, which may enable them to consolidate their debt into manageable monthly payments.

The website showed recently that as many as one in four Britons' new year's financial resolutions faltered within a month.