New research from Totally Money has found that 1 in 5 Britons are overdrawn by an average of £697 per day
Customers of major British banks, such as Santander, HSBC, Nationwide, and Natwest, are being alerted to the costly implications associated with frequent overdrafts, as a recent study by Totally Money highlights that 1 in 5 bank customers habitually exceeds their account balances. The average daily overdraft amounting to £697 has spurred the firm to issue a stark warning regarding the hefty borrowing costs imposed by leading high street banks.
Alastiar Douglas, the CEO of TotallyMoney, commented on the situation: "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.", reports the Express.
Mr Douglas suggested a change of bank could be beneficial, as many providers offer an interest-free overdraft and a cash bonus to switch. He added: "There are some providers who'll give you an interest free overdraft, and a bonus for switching. Which means you might be able to clear some of your debt, and stop paying interest on part or all of what you owe.
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