Five million Brits permanently overdrawn
The most common users of overdrafts were 20-29 year olds with 46% dipping in the red. They were also the most likely to live in their overdrafts with 16% never leaving it. Conversely over 70s were the least likely to use their overdraft facility, with just 18% borrowing through their current account.
Encouragingly, despite well over a third of Brits claiming to have used their overdraft, half of all people surveyed claimed they would cut back on their spending or dip into their savings before going into the red.
Kevin Mountford, head of banking at moneysupermarket.com, said: “Times are extremely tough for UK consumers so it’s no surprise to see so many Brits living in their overdrafts. The recent rises in the cost of living have made the habit of living in the red even harder to break for many consumers and we can expect to see many more people falling back into this position as living costs continue to increase. However, it’s good to see many people taking a more sensible approach by looking to cut back on spending or use their savings before going into their overdrafts.”