Millions of people are permanently stuck in the red, while millions more have strayed into their overdraft in the past year, research has found.
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Research by MoneySupermarket has found that the bank accounts of almost five million Brits are constantly overdrawn.
On top of this, more than a third of people ñ more than 17 million ñ have drifted into the red at least once in the last twelve months.
The younger generation are the most likely to dip into their overdraft, as the research found that 49% of 18-34 years olds have gone overdrawn in the last year.
ìTimes are hard for UK consumers with many people either out of work or receiving no pay increase despite the high cost of living,î said Kevin Mountford, head of banking at MoneySupermarket.
ìIt’s therefore no surprise to see many Brits living in their overdrafts or being forced to dip into it throughout the year to help cover these costs,î
Worryingly, the research found that more than a quarter of those who went into the red last year did so just 15 days after being paid. A further 7% went overdrawn after just five days.
However, it was found that many people are keen to avoid using their overdraft, as more than a third said they would cut back on spending or dip into savings to stay in the black.
ìIt’s encouraging to see people taking a sensible approach to tackle their overdraft by looking at ways to cut back on spending or using their savings,î added Mr Mountford.
ìWhen used wisely, an authorised overdraft facility still has an important part to play in the nation’s finances as it can offer an invaluable buffer for unexpected costs.î
You can compare debt solutions with Money Expert.