One in three rely on overdraft

One-third of UK adults rely on their overdraft in order to remain financially afloat, new research reveals.

A poll by a price comparison website found that one in three adults (35 per cent) with a bank account is reliant on their overdraft to stay solvent; equivalent to 14 million people.

The uSwitch survey indicates that 28 million of the 40 million British adults with a current account now have an overdraft facility.

A massive one in four account holders admitted to being permanently overdrawn, with the average overdrawn balance at around £-677. Men reported considerably higher average overdrafts than women.

Two out of five (39 per cent) of those quizzed admitted to using their overdraft for shopping, 14 per cent for rent or mortgages and 39 per cent for bills.

Nick White, uSwitch head of personal finance, said: "With no structured repayment scheme on an overdraft, we are worried that many people will struggle to pay the debt off."