Wednesday 18th of August 2010
Many people in the UK are paying more than they think for banking services, it has been observed.
Consumer campaign group Which? explained that while current accounts may appear to be free, some are charging over the odds for overdrafts and spending abroad.
Brits in the red could be paying up to £1,140 a year in unauthorised overdraft fees, the figures showed, while using cards overseas can be very costly for anyone travelling regularly.
"Contrary to popular belief, banking is not free," said Which? chief executive Peter Vicary-Smith. "Whether it's through low interest rates or high charges, we all end up paying for our current account in the end."
Those whose debts are getting out of control may, however, wish to consider seeking advice on a debt relief order (DRO) as an alternative to bankruptcy.
Louisa Parker of the Money Advice Trust recently noted more consumers who owe less than £15,000 are choosing this option, as it is a cheaper form of insolvency.
By Rachel Powell
