8 million people to go overdrawn this month

8 million people will go into their overdraft this month, with 2 million set to go into one that is unauthorised, according to new research by insolvency professionals R3.

R3`s latest findings show that record numbers of people are struggling to manage their debts, with 6 million of those surveyed admitting to being behind with their bills and debt repayments. This is a jump of 2 million over the last quarter.

Furthermore, over a third of people (36%) believe that their financial situation will worsen over the next six months, while 32% said they are now saving less than they used to - an increase of 8% on the last quarter. This percentage equates to 15 million people in the UK.

Frances Coulson, R3`s president, commented: "These figures make for worrying reading. It is clear that many have found themselves in a position whereby they have to go into and often exceed their agreed overdraft in order to keep on top of their bills and debt repayments."

A spokesperson for debt management company Gregory Pennington said: "Depending on the individual`s situation, using an overdraft could be the best way of borrowing some money from time to time - if used carefully. However, like any form of borrowing that costs money, it can make them financially worse off in the long term."