A Quarter Of People Couldn't Live Without An Overdraft

[OnionTerror]

http://www.independent.co.uk/money/loans-credit/quarter-could-not-live-without-overdraft-2085395.html

A quarter of people say they could not live without their overdraft and one in five admits to being constantly in the red, a survey suggested today.

Around 78% of people have an arranged overdraft facility with their bank, although 21% said they would only use it in an emergency, according to discount website Groupola.com.

But 18% of those questioned admitted they were constantly overdrawn and 24% said they could not manage without the facility.

Only 6% of people said they had never used their overdraft, with 2% saying they had actively cancelled it.

Just under half of people with an overdraft said they had requested it from their bank manager, but 32% said they had felt forced into having one, while 12% said they had automatically been given one when they opened their bank account.

A fifth of people said they had first arranged an overdraft when they were a student, while 16% had taken one out to help cover an expensive purchase.

But despite 66% of people saying they considered an overdraft to be a form of debt to worry about, 38% admitted they had no idea how much interest they were charged on it.

Mark Pearson, chairman of Groupola.com, said: "An overdraft can sound extremely appealing, it can almost seem like free money, but it will always be something that needs to be paid back at some point."

[OnionTerror]

http://www.independent.co.uk/money/loans-credit/quarter-could-not-live-without-overdraft-2085395.html

A quarter of people say they could not live without their overdraft and one in five admits to being constantly in the red, a survey suggested today.

Around 78% of people have an arranged overdraft facility with their bank, although 21% said they would only use it in an emergency, according to discount website Groupola.com.

But 18% of those questioned admitted they were constantly overdrawn and 24% said they could not manage without the facility.

Only 6% of people said they had never used their overdraft, with 2% saying they had actively cancelled it.

Just under half of people with an overdraft said they had requested it from their bank manager, but 32% said they had felt forced into having one, while 12% said they had automatically been given one when they opened their bank account.

A fifth of people said they had first arranged an overdraft when they were a student, while 16% had taken one out to help cover an expensive purchase.

But despite 66% of people saying they considered an overdraft to be a form of debt to worry about, 38% admitted they had no idea how much interest they were charged on it.

Mark Pearson, chairman of Groupola.com, said: "An overdraft can sound extremely appealing, it can almost seem like free money, but it will always be something that needs to be paid back at some point."

Ruddy nora. I've never had to use mine (touch wood and all that)..

Edited September 21, 2010 by Dave Beans