Overdrafts Replacing Credit Card Debt, Report Debt Line
LONDON, UNITED KINGDOM--(Marketwire - Oct. 25, 2012) - According to the Consumer Credit Counselling Service (CCCS), overdrafts are increasingly being used in replacement of credit cards. The debt charity has reported an increase in the number of people it is helping with overdraft debts despite a fall in overall personal debt in the UK.
In 2012, the average amount of overdraft debt among clients seeking the CCCS' help has risen to GBP 2,082 from GBP 1,748 in 2007. Furthermore, the overall number of people seeking assistance with repaying overdrafts has also jumped from 58,069 in 2007 to 134,540 in 2011.
The CCCS is particularly worried about this rise in overdraft debt because it is notoriously expensive incurring high interest charges by most banks as well as daily fees, sometimes of as much as GBP 1 per day, no matter how into the red a person is.
Credit cards and loans are becoming harder and harder to attain as banks tighten their belt as the recession continues in the UK. However, most people have had overdraft facilities for years and thus they are providing what appears to be an easy way out. But with high charges and interest rates, many people are quickly falling foul of their overdrafts.
Debt Line can help. Debt Line is a debt management company helping its clients get back on the financial straight and narrow. It can consolidate debts online, draw up repayment plans and it will even work with angry creditors on its clients' behalves. It deals with all kinds of debts, overdrafts included.
Debt Line is also a fountain of knowledge when it comes to financial products in the UK. Former clients rate all of the major banks, building societies and lenders based on service and performance; Debt Line then passes this information onto its customers. For instance, it makes its customers aware of the fact Lloyds TSB was the most complained about bank in the UK in the first six months of 2010. This along with other valuable nuggets of information relating to banks, debt and finance, can be found on its website.
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