Financial advisers IFA Promotion gave this name to February 10th because it is the 41st day of the year – and the average British worker takes 40 days to pay off the interest on their credit cards and loans.

This calculation was based on an average salary of £22,183 a year, with an average interest on credit card debts of 14.99 per cent and 12.5 per cent on loans.

However, when compared with last year, the UK debt burden seems relatively light.

Last year’s Debt Freedom Day fell five days later on February 15th.

This year’s reduction reflects the fact that the average credit card and personal loan debt has actually fallen from £3,200 in 2003 to £2,400 in 2004.

The best way to avoid debt altogether, IFA Promotion advises, is to manage your finances with care.

“Although Debt Freedom Day is a hypothetical date it illustrates the very real point that, as a nation, we need to take control of our finances,” stated David Elms of IFA Promotion.

“The simple answer to reducing debt is careful budgeting, looking at our income and outgoings, and how we’re managing them.”

It is also worth shopping around for the credit card and loan deals best suited to your needs.

To find the best credit card deal for you, click here.
© DeHavilland Information Services plc