An increasing number of Brits over the age of 50 are permanently overdrawn and rely on this banking facility to supplement their income , suggests research.
The report compiled by the price comparison website uSwitch found that one in four Brits over the age of 50 use their overdraft regularly and 850,000 are permanently overdrawn.
This increasing level of reliance on overdraft banking facilities means that many are running up huge costs in interest payments and penalty charges.
Almost 50 per cent of those using their overdraft have no idea how much it is actually costing them.
However, according to the website overdraft users are paying approximately £330 million a year in interest alone and a further £238 million in penalty charges.
Speaking about this problem, Nick White from the website says the research overturns the usual view that debt only affects younger generations in the UK.
"At a time when the only interest rates the nation's elderly should be worrying about are those on their savings accounts , too many are finding out how expensive it is to borrow on an overdraft - or worse still, to go overdrawn without authorisation," he commented.
He added that banks seem to be unconcerned about the banking practice of lending money to people who are on the verge of retirement , or are already a pensioner.
He argued that one in five of the over 50s surveyed said their banking firm had increased their overdraft limit without it even being requested.
Over 50s reliant on overdraft, suggests banking research
Financial Services > e-banking > Banking news
Over 50s reliant on overdraft, suggests banking research
Tue, 09 May 2006
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