According to Moneysupermarket, going into overdraft debt can cost £125 even before interest payments are made, leading to a UK total of £40 million.
“When it comes to personal banking, apathy is expensive,” said Stuart Glendinning, managing director at Moneysupermarket.
“Failing to budget properly or keep an effective eye on your account can cost you – and banks rely on it to help fill their coffers.”
News of poor budgeting comes amid reports that disposable income is falling, meaning that people have even less spare money.
Yet it appears that poor budgeting is leading many to take on avoidable debt through unauthorised borrowing.
Although the Office of Fair Trading is investigating the levels of penalty charges, proper financial management of debt can spare the need for incurring fees, whatever the price.