Overdraft debt more expensive

The cost of overdraft debt has risen significantly in the last 12 months, according to MoneyExpert.

People in debt who exceed their overdraft limit are facing higher charges: as moneynews.co.uk reports, ‘banks that charged £25 for exceeding agreed overdraft limits in November 2007 are now charging £30’.

According to MoneyExpert, this could affect as many as one in four adults in the UK.

Furthermore, the cost of authorised overdraft borrowing has also increased, with the average current account now charging 13.12% – an increase of 1.44% on the 11.67% charged 12 months ago.

“These figures underline the importance of managing your finances,” said a spokesperson for debt management company Gregory Pennington. “Going over an overdraft limit – or even having an overdraft, in fact – could have a severe impact on a borrower’s monthly budget. Anyone who finds they’re incurring this kind of charge should seek debt advice as soon as possible, especially if it’s happening on a regular basis.”

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Gregory Pennington offer debt management plans and a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.