Quarter can’t imagine their life without overdraft

According to the latest survey, 25 per cent of consumers say they could’t imagine their life without their overdraft and 20 per cent of consumers say that they are constantly in debt.

Groupola.com has revealed that about 78 per cent of consumers have an arranged overdraft option with their bank, and only 21 per cent of them said it was used solely for emergency cases.

Worryingly, 18 per cent of people who took part in the survey said they were always overdrawn and a quarter said they could not do without overdraft.

It came as a surprise that only 6 per cent of respondents have never used their overdraft.  2 per cent said they had discontinued overdraft facility altogether.

12 per cent said they had been given this facility as an add-on product when they opened their bank account. Nearly 20 per cent said they had opted for an overdraft protection for the first time during their student years, while about 16 per cent had requested this facility when they needed money for making an expensive purchase.

One of the most important finding was that although 66 per cent of consumers responded they realized that an overdraft was a form of debt, 38 per cent said they didn’t know as the interest charged on it.
 


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The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.