A quarter of Britons reliant on debt

A quarter (24 per cent) of people say that they can't live without their overdraft, which brings into question their debt management ability.

Research from discount website Groupola.com also reveals that a fifth (18 per cent) of those questioned are always in debt to their bank via their overdraft.

Perhaps most worryingly for these people, the findings also show that two in five (38 per cent) admitted that they didn't know how much interest was being charged on their bank debt.

Groupola.com's chairman notes that "an overdraft can sound extremely appealing, it can almost seem like free money, but it will always be something that needs to be paid back at some point."

Many may find that an Individual Voluntary Arrangement (IVA) or a Debt Management Plan (DMP) may provide a better long-term debt solution for them.

Director of Atlantic Fianancial Management, Kevin Still, says, "It is a concern that many UK households are reliant on their overdraft and paying only minimum contractual payments on their credit card debts just to stand still.

The question is whether there is a long-term plan to deal with these debts and whether it is possible to deal with your debt problems on your own.”

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