Belmont Thornton Logo
PPI Claims - About PPI

PPI Claim News

 
Bank charges soar as millions enter overdraft early in the month

Millions of Brits are clocking up bank charges on overdrafts as soon as they get paid, according to new figures showing many are in the red on the first of each month.

A survey from budgeting account provider thinkmoney shows that 11.1 per cent of overdraft users, equivalent to 1.9 million people, slip into negative territory on the first of the month. 

Overall, 17 million people with a current account (36 per cent) make use of an overdraft and by the 16th of the month over half of them are overdrawn.

The study also reveals how behaviour changes as the month progresses and the money runs low. Straight after payday there is a rush to the supermarket, with 32 per cent, or 16 million, doing a large and indulgent grocery shop. 

But splashing out like this just after payday seems to leave people a bit strapped for cash as the month draws on, the firm notes.

Some 20 million people (42 per cent) put off any non-essential spending, while 13 million (26 per cent) live off the food they already have in their cupboards.

Ian Williams from thinkmoney said: "It seems that the excitement of being paid can cause people to dash out and spend, only to run low on funds later in the month - with more than a third of us using an overdraft to get by."

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail bankingADNFCR-2776-ID-801598378-ADNFCR



Bookmark and Share
Tell a Friend
blog comments powered by Disqus

Enquiry Form

First Name 
Last Name 
Mobile Phone
Home Phone
Address Line 1 
Town
County
Post Code 
Email 
Circumstances
Claim Back Mis-Sold PPI Button

Belmont Thornton Limited is regulated by the Claims Management Regulator in respect of regulated claims management activities; our registration is recorded on the website www.gov.uk/moj/cmr number 18273

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit 16, Elysium Gate, 126 New Kings Road, London, SW6 4LZ and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

Belmont Thornton Limited is registered with the Information Commissioners Office. Registration number Z1728023.

Please note that calls may be monitored for the purposes of staff training.

* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.

By using our web-site, you agree that we can place the types of cookies described in our privacy policy on your device.Hide