Friday 12th of March 2010
Britons are starting young when it comes to having an overdraft facility, with one in ten 18-24 year olds able to access three or more, a new report reveals.
On a wider scale, seven per cent of adults have three or more personal current accounts with an overdraft, the Callcredit survey states.
People who rely on the money in their overdraft to pay for everyday costs may decide it is wise to start asking questions on individual voluntary arrangements (IVAs).
If overdrafts are being used to meet store card repayments, then an IVA could prove to be of assistance.
While an IVA cannot clear an overdraft, it can merge different store card balances together, making it easier for individuals to stay on top of what they owe.
Graham Lund, managing director of the Callcredit Information Group, said: "What’s particularly concerning is the proportion of young people who appear to be targeting multiple providers for access to multiple overdraft facilities."
Clearing serious debt through an IVA at a younger age could mean that by the time Britons are ready to settle down, their finances are in order for the future.
By Kim Parsons
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- An IVA could end the inconvenience of climbing credit card debts
