Britons have been warned against accidentally slipping into their overdrafts in January without authorisation from the bank.
Moneynet.co.uk’s Andrew Hagger recommended that, if people believe this could be a problem, they should contact their lender and arrange for an overdraft facility to be set up to reduce any fees incurred.
“The cold reality of a depleted bank balance will make bleak reading for some people who may struggle to avoid exceeding their limit before January pay day finally arrives,” he said.
Mr Hagger went on to note that the price tag for an agreed overdraft loan from the bank is much less than that sustained through unauthorised borrowing.
The website highlighted some of the charges applicable if this takes place, with Lloyds TSB asking for £155.54 if a limit of £150 is surpassed and the account remains overdrawn for seven days.
Mr Hagger’s comments follow recently released debt statistics from Credit Action, which found that 133 per cent of average earnings for British adults are owed.
By Sarah Adie