Tuesday 9th of June 2009
Consumers could find that overdraft charges continue to rise in the coming months, an expert has suggested.
Figures from moneysupermarket.com have revealed increases over the last year and Tom Howard, spokesperson for the Consumer Credit Counselling Service, noted that further problems may arise.
"As consumer debt soars and the risk of people having to enter or rely on overdrafts to make ends meet grows, overdrafts are a natural target for banks to cash in on," he said.
Those who are struggling to keep on top of overdrafts and other debts may wish to consider seeking IVA advice, as solutions are available to make repayments more affordable.
Some could be looking to switch banks to avoid the charges, but Mr Howard suggested that this may not be the best policy.
He explained that other institutions are also likely to increase their rates in order to stay competitive, which could mean similar problems are faced down the line.
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- Lack of subprime lending creating need for IVA help, expert suggests
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