British consumers who are already using their overdraft banking facility have been warned to pay attention to their spending or face further debt management difficulties.
According to MoneyExpert.com, the average charged levied by British banks when their customers go over their specified overdraft limit now stands at £44.98 and in some instances can be as much as £60.
The price comparison service insists that banks often charge their customers twice if an overdraft limit is exceeded, initially for an arrangement fee and again if a direct debit or cheque payment is refused.
“When you could get stung for more than £60 just for going beyond your overdraft limit, people need to pay careful attention to their spending and the arrangement they currently have with their bank,” said Sean Gardner, chief executive of MoneyExpert.com.
“Few [banks] don’t charge at all so you should talk to your bank about a more realistic limit if you’re incurring fees regularly,” he added.
Chris Tapp from the Credit Action charity suggested recently that the attitudes of banking groups in the UK are deterring indebted consumers from entering an Individual Voluntary Arrangement.