You are here: Home - Credit Cards & Loans -

Four and a half million Brits permanently in the red

Written by:
Four and a half million Brits are permanently overdrawn and over 17 million have gone into the red over the last twelve months according to research from
Four and a half million Brits permanently in the red

The research found more than one-third of Brits (35%) have used their overdraft in the past twelve months, with those aged 18-34, (49%) the most common users of an overdraft facility. Over a third surveyed claimed they would cut back on their spending or dip into their savings as a first step to manage their finances, before going into the red.

Of those who have gone overdrawn in the last twelve months, over a quarter (27%) ended up in their overdraft just 15 days after they have been paid. 7% hit the red zone within five days of being paid.

Kevin Mountford, head of banking at, said: “Times are hard for UK consumers with many people either out of work or receiving no pay increase despite the high cost of living. It’s therefore no surprise to see many Brits living in their overdrafts or being forced to dip into it throughout the year to help cover these costs.

“However, it’s encouraging to see people taking a sensible approach to tackle their overdraft by looking at ways to cut back on spending or using their savings. When used wisely, an authorised overdraft facility still has an important part to play in the nation’s finances as it can offer an invaluable buffer for unexpected costs. It’s essential if you use an overdraft to ensure you have always agreed this with your bank and don’t be tempted to stray over your limit as the cost of unauthorised borrowing can rocket.”


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Rise in credit card reward schemes

Research from Sainsbury's Finance has revealed 42.3% of credit cards now offer some form of reward incentive, compared to 27.4%...