- Wednesday, 24 February 2010An
IVA may help the ten per cent of British adults that are permanently overdrawn and struggling with spiralling debts.
New research from moneysupermarket.com reveals that five million adults live on their overdraft, and a further 12 per cent are finding themselves in the red five times or more a year.
Yet the figures do demonstrate an improvement compared to the situation 12 months ago, when 17 per cent of British adults were permanently overdrawn.
Head of banking at moneysupermarket.com Kevin Mountford said it is concerning that there are still a large number of people living on their overdraft.
Rising inflation was no doubt going to make it even more difficult for people to break the habit, he said.
"The dangers of being overly, or entirely, reliant on your overdraft are clear; firstly this can be an extremely expensive debt to carry if it hasn't been agreed with your bank in advance, and secondly your bank can reduce the size of your overdraft with little warning."
New figures from the Office for National Statistics reveal that the CPI annual inflation increased from 2.9 to 3.5 per cent in January - the second largest ever increase in the annual rate between two months.
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