Over 2 million people stuck in overdraft

December 6, 2017

According to the debt charity stepchange 2.1 million people are stuck in overdraft.  Their research found:

 

  • 2.1 million people were constantly in their overdraft in 2016

  • Over three quarters (79%) of our clients we surveyed were constantly in their overdrafts in the 12 months before they came to us for advice

  • Our clients typically get into overdraft debt to cover essentials; 81% of clients with overdrafts used them to pay for food, living costs, or household bills

 

This is quite disturbing news and many people are caught in a vicious circle trying to get out of debt.

 

However, we also see a rise in borrowing, particularly in the car industry. This was commented some months ago by the Governor of the Bank of England Mark Carney.

 

Our view is people need to try and be prudent with money, set a budget plan and stick with it. We may fancy a new car, but is it necessary? We may want the latest Ipad or iphone but do we truly need it? 

 

Christmas is a time when many overspend, again, we say set a budget and stick to it.

 

Stepchange also state;

 

3 ways to reduce the harm caused by overdrafts

 

In our briefing paper, we make three recommendations that will reduce the harm overdrafts cause. We're calling for:

  1. The abolition of unarranged overdraft charges

  2. Banks to do more to help their clients out of their arranged overdrafts in an affordable way

  3. The Financial Conduct Authority (FCA) to investigate unaffordable overdraft lending

     

     

     

     

     

     

     

     

     

You can view the full information here:

 

 

https://www.stepchange.org/policy-and-research/debt-research/stuck-in-the-red.aspx

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Please reload

4 Rutherford Centre

10 Dunlop Road

Ipswich

IP2 0UG

01473 487611

Please note all calls are recorded for training and monitoring purposes

  • White Facebook Icon
  • White Twitter Icon
  • LinkedIn - White Circle

Langham Associates Ltd Independent Financial Planners is authorised and regulated by the Financial Conduct Authority. FCA Number 587218 https://register.fca.org.uk/

The Financial Conduct Authority does not regulate will writing and taxation and trust advice

The information contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK and does not constitute advice or recommendations.

Langham Associates Ltd: 4 Rutherford Centre, 10 Dunlop Road, Ipswich, IP2 0UG.

Registered in England. Reg No 4203807. Registered Address: 20-21 Aviation Way, Southend on Sea, SS2 6UN.

We are not responsible for the content and accuracy of external websites accessed from this site.

© 2017 by Langham Associates Ltd