Home > News > Debt advice

More than 4 million fear they`ll be made redundant Consumers took on more mortgage debt in July Debts called in by parents Teenagers `scared of debt` Rising household costs could pressure people in debt Pensions debt may impact workers` retirement funds Welsh young adults `at highest risk of debt problems` Over 50s can`t afford to enjoy retirement because of debts Budget: tackling the nation`s debt Short-term debt: `no need for price control` The cost of clearing debt Education debt Tackling the national debt Number of mortgage deals on offer exceeds 3,000 Almost 5 million take on debt to pay household bills OECD: household debt more than 120% of disposable income Petrol price falls help people in debt Amount of mortgage debt taken on at lowest level in ten years Northern Ireland sees significant IVA rise Overdraft debt `becoming more expensive`

Overdrafts: five million Britons `permanently` in debt

24/02/2010

According to comparison website moneysupermarket.com, five million Britons are permanently overdrawn, the Guardian reports, meaning they are always in debt to their bank.

Research by Opinium Research, on behalf of the website, found that one in 10 current account customers were in debt to their bank all year round, a further 12% `drop into the red at least five times a year`, and 38% have used their overdraft at least once over the past 12 months.

These figures, however, mark a `big improvement` on 2009, when moneysupermarket.com found that 17% of British adults were permanently in debt to their bank, a further 15% dropped into the red more than five times a year, and 52% used their overdraft at least once over the year.

Head of Banking at moneysupermarket.com, Kevin Mountford, said: "With rising inflation, it is going to be difficult for many to break the habit of living in the red, and it may be that more people will fall back into this position as living costs increase."

He went on to say that: "The dangers of being overly, or entirely, reliant on your overdraft are clear; firstly this can be an extremely expensive debt to carry if it hasn`t been agreed with your bank in advance, and secondly your bank can reduce the size of your overdraft with little warning."

---

Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements).

More than 4 million fear they`ll be made redundant 16/12/2010 - According to R3`s quarterly personal debt tracker, more than 4 Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according