Five million 'permanently overdrawn'

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Five million 'permanently overdrawn'

Fri 26th Feb 2010

New research from financial advice website moneysupermarket.com has revealed that one in ten people in Britain are living off their overdraft.

The study also showed that the five million Brits who are constantly overdrawn are paying on average £240 more per year than they could be doing if they switched providers to take advantage of a better rate.

However, despite the high statistics, the situation has improved over the past 12 months, with a drop to ten per cent from 17 per cent of those who are constantly using their overdraft and 52 per cent of people going overdrawn at least once, compared to 38 per cent now.

Kevin Mountford, head of banking at moneysupermarket.com, said: "While it is encouraging to see less and less people reliant on their overdrafts, we should be concerned that there are still such a large number of people permanently overdrawn."

Moneysupermarket.com recently claimed that further rises in inflation could render interest on instant access savings accounts redundant.

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