Overdraft charges ‘on the increase’

Bank account holders who exceed their overdraft limit can expect to be charged an extra £5 every time they do so, new figures have suggested.

Analysis of the current account market by MoneyExpert.com has revealed banks are increasing charges for going over agreed limits, with as much as £30 now being levied for a balance going into the red.

The news may worry those who are in debt and consistently make the most of their overdraft and director of MoneyExpert.com Sean Gardner has urged borrowers to keep a “close tab” on their outgoings over the festive period.

“A £30 charge isn’t the Christmas present most of us are after and if you want to avoid these costs then watch your balance,” he remarked.

Those who have a debt management plan in place to manage their finances may wish to take Mr Gardner’s advice on board.

Credit card holders who spend the predicted average of £376 over the festive period and only make minimum repayments may not pay off the debt on their card until 2016, moneysupermarket.com has claimed.

By Tom Musk