Mortgage Industry News

← Back

Consider life insurance on 'debt free day'

Date: Tue, 07 Feb 2006

The arrival of "debt free day" is a good time for many consumers to consider taking out life insurance.

Debt freedom day marks the time taken for the average person to cover the interest on their outstanding loan and credit card debits – a total of £2,350, according to IFA Promotion.

However, many people are failing to ensure that they have adequate life insurance to cover such debts if the worst should happen. This lack of insurance cover could mean that relatives may be forced to sell the family home to cover any outstanding debts; therefore borrowers should look at increasing their life insurance policies or reducing their debts

David Elms, chief executive of IFA Promotion said: "Debt Freedom Day is of course a hypothetical date, but it serves to demonstrate that the UK consumers really need to take better heed of warnings and take charge of their finances."

He added: "Whilst a reduction in the number of credit card and personal debts is unquestionably great news, the only way to control debt and increase saving power is to adopt careful budgeting."


© 1998-2005 DeHavilland Information Services plc. All rights reserved.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.