How overdrafts can lead to problem debt
Our new briefing looks at how households on tight budgets turn to credit like overdrafts to cover shortfalls in their household finances and how this can lead them to be at greater risk of falling into problem debt.
Regularly having to go into an overdraft, or over an overdraft limit, and being hit by unarranged overdraft charges can lead to and exacerbate financial difficulties for many financially vulnerable households.
Overdrafts are a significant part of the debt landscape
More than half of our clients have overdraft debt. Our research also found:
- Overdrafts are the second most common debt type we see (after credit cards) –52.8% of our clients have overdraft debt.
- We helped nearly 100,000 people with overdraft debt in the first half of 2016.
- The average overdraft debt among these clients is £1,679
Download the report now for the full picture.