Costs of being overdrawn revealed

Looking at the fees major banks charge for going overdrawen, moneyfacts.co.uk found that the big four high street banks would add up to £30 of debt for anyone going £1 into the red for just one day.

“While it cannot be disputed that current account fees look excessive, the problem is made worse by the lack of transparency caused by the complex terms, conditions, waivers and by every provider charging in a slightly different way,” said Lisa Taylor, analyst at the financial website.

While not all banks charged a fee, she said that those that do could be risking good customer relations.

Ms Taylor added that if any financial problems do occur then customers should contact their bank immediately.

This advice can apply to both minor and major financial problems, where banks as well as independent firms can offer advice on becoming debt free.