One in Five Consumers Live In The Red

A recent survey from discount website has revealed desperate consumers are increasingly living beyond their means and in their overdraft. A staggering 18% of those surveyed said the were constantly in the red, whilst 24% claimed that they could not manage without their overdraft facility. Perhaps most staggeringly, 34% believed that an overdraft was not a form of debt to be worried about and 38% did not know how much interest they were being charged.

Whilst an overdraft can provide a valuable buffer in case of emergencies, you need to keep in mind that most banks do charge significant fees for the privilege. You should also be aware that lenders are well within their rights to reduce the overdraft as they see fit, which can cause money problems later on down the line.

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