Brits spend millions exceeding overdraft limits
(13 December 2005)

Brits are suffering more and more from the increased cost of exceeding their overdraft limit, according to figures from MoneyExpert.com.

Going over your limit drags you onto a path ridden with peril, with weighty costs and hidden charges looming large at every turn, meaning customers pay out £700 million than they should be spending each year.

A bounced cheque costs consumers on average £32.22 a time – 31.67 per cent more than in 2003 – and unpaid direct debits will drain you of £31.33 on each occasion, which is a 13.97 per cent increase.

Unpaid standing orders also get in on the act with an average charge of £31.06. With Alliance and Leicester showing that 42 per cent of current account holders are overdrawn, and that interest charged on this very privilege sometimes reaches 15 per cent, it's not a good time to dig yourself deeper into a hole.

A payday loan could help provide a timely halt to your financial voyage into the heart of darkness. You don't have to repay a penny until you have received your pay cheque, by which time you can have paid off some outstanding debts and costs without ploughing the depths of your overdraft and receiving some nasty surprises.

Three quarters of people with current accounts have overdrafts, and receiving some short term cash can help ensure that they remain a measure which cannot be taken for granted.



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