People in debt need to ensure that they are acting prudently with regards to their current accounts in the face of price cuts by two high street banks for unarranged borrowing, it has been suggested.
According to Louise Bond, a personal finance expert from uSwitch.com, the move by Natwest and the Royal Bank of Scotland (RBS) could be of great help to those struggling with debt management but people need to be careful when it comes to their current account.
“Consumers can still rack up as much as £260 a month in charges which, although it is 25 times lower than the previous £6,688 limit, it is still a hefty price to pay,” she said.
Ms Bond’s comments follow the decision by Natwest and RBS to reduce overdraft fees to £15 a day, a decrease of 50 per cent, as well as a cut to £5 for people who go overdrawn without notifying their bank.
By Sarah Adie