Staff would need to work 70 days to clear interest on credit cards and loans

Brits would have to work for an average of 70 days in 2008 just to pay off the interest on their credit card and loan debts, new research claims.

Work by independent financial advice website Unbiased.co.uk, found a large increase in personal debt levels in the past year, while the interest people are charged on their borrowings saw a 6% rise.

The amount people owed on personal loans jumped to £9.8bn this year, compared with £2.6bn in 2007.

Interest rates on personal loans are also 0.5% higher as the credit crunch begins to bite, meaning Brits face a bill of £1.5bn in interest payments alone.

David Elms, chief executive of Unbiased.co.uk, said: “In the current economic climate, it is 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.”

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