Debt help could get people out of the red

24/02/2010

Research from price comparison site Moneysupermarket.com, has found that despite a marginal improvement on last year's figures, many people are still living on their overdraft.

Millions could be in need of debt management as the study found at least five million are permanently overdrawn.

A further 38 per cent of Brits had dipped into their overdraft in the past 12 months.

Kevin Mountford, head of banking at the website, commented: "Whilst it is encouraging to see less people reliant on their overdrafts, we should be concerned that there is still such a large number of people permanently overdrawn.

He added: "With rising inflation, it is going to be difficult for many to break the habit of living in the red, and it may be that more people will fall back into this position as living costs increase."

If people do need an overdraft facility, then shopping around could be of great benefit with some current account holders managing to save over £200 a year by picking the best deal.

Yesterday, Andrew Hagger of Moneynet.co.uk revealed that banks have been pushing up the costs of authorised overdrafts.

He found that there had been an average rise in costs of ten per cent on an overdraft of £1,000.

Posted by Jim Mead

Tags; Debt Management and Banking,

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