Personal finance experts say most people can easily avoid the 'ghost' charge
Millions of bank customers have been warned they are unnecessarily paying a charge of an average of £278 a year and could make big savings with a simple switch. An investigation found the average customer with an overdraft would pay £278 in interest each year.
TotallyMoney CEO, Alastair Douglas said: “Overdrafts are for many a ghost debt. They may have applied for, or been offered it years ago, and it simply sits as an extension to their current account. There’s no separate card, bank, or app — and the customer may not even be aware that their overdraft is a type of borrowing, or that they can be quite expensive.
Andrew Hagger, Personal Finance Expert, Moneycomms.co.uk said: “There was a time when authorised overdraft rates were pretty much on a par with standard credit card rates, but now it’s very different, with overdraft rates heading towards double the rate of credit card interest.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
State pensioners in £200 boost from Santander, Lloyds and NatwestState pensioners can get as much as £200 from their bank to replace their missing Winter Fuel Payment this year
Read more »
Pensioners can get up to £200 from Santander, Lloyds, Natwest or NationwideSeveral big banks are offering cash incentives to swap bank brands right now, which can be worth up to £200
Read more »
I found the best Black Friday TV deal by shopping early'The 50-inch 4K Smart TV has been cut by 44% dropping the price from £499 to £278 - a £221 saving as a perk of looking around
Read more »
Lloyds Bank makes payment change for customers and says 'no need'The bank said it will also soon be made available on Halifax and Bank of Scotland mobile banking apps
Read more »
Lloyds, NatWest, First Direct, Nationwide offering up to £200 free cashLloyds, NatWest, First Direct and Nationwide have all launched deals offering a cash incentive to those who switch their banking services
Read more »
Lloyds customers can show a QR code to request money back from friends or familyCustomers can request up to £150 each time and receive a maximum of £500 per day.
Read more »