Overdraft debtors ‘should shop around’

Those paying high interest and charges on their overdraft debt should seek out better deals from other current account providers, one expert has said.

Head of banking at moneysupermarket.com Kevin Mountford stated that in the difficult financial climate consumers should be shopping around to save themselves money.

And he added that it is not true that it is impossible for overdrawn people to change their current accounts.

“As long as you manage your account well … there is no reason why you won’t be able to move to a more competitive product that better suits your needs,” he remarked.

The comments were made as the price comparison website warned there is an increasing amount of confusion concerning overdraft charges, stemming from recent attempts by some vendors to simplify their structure.

According to figures published by the company in May, more than 50 per cent of workers went overdrawn in the previous 12 months.

By Chris Trimble