LONDON (Reuters) — British workers have spent the past month effectively working for nothing — as January earnings have typically been swallowed up servicing debt.February 1, yesterday, is “Debt Freedom Day”, according to Unbiased.co.uk, which promotes the benefits of independent financial advice.

It might sound exciting, but it means that the average consumer has worked the first 31 days of the year simply to service the interest on outstanding credit card and loan debt — let alone repaying any of the borrowings.

The calculations are based on average unsecured debts of $2,012 and the typical British salary of $23,556.

“Debt Freedom Day” has, however, fallen five days earlier than last year, when higher levels of personal indebtedness meant it took the average consumer until February 6 to earn enough money to service their debts.

Total unsecured personal borrowings have fallen by 7 percent over the past three years — to $58 billion from $62 billion — and average annual levels of interest notched up have plummeted by 37 percent from 3,200 pounds in 2003, according to official figures.

However, Unbiased.co.uk’s latest “Savings Brake” data shows that consumers are still borrowing money at a rate of 49 pence for every pound saved.

Chief executive David Elms said: “Although ‘Debt Freedom Day’ is, of course, a hypothetical point in the financial calendar, it does serve a real purpose and should be seen as a wake-up call to those who carry personal debt.

“Average levels of personal debt continue to fall year-on-year, but the real headline will come when official figures show people controlling their spending behaviour and increasing their saving power, and this date becomes a non entity. Why spend an entire month slaving away to earn just enough money to service the interest on this financial burden?”

The analysis uses data from the Bank of England, British Bankers Association, Association of British Insurers, Association of Investment Companies and Investment Management Association.