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Overdraft dependence 'is a sign of serious debt problems'

08 Jun 2009

Regularly using an overdraft for everyday expenditures implies that a person is struggling seriously with debt. This is the claim made by Tom Howard, spokesperson for the Consumer Credit Counselling Service (CCCS).

While overdrafts can offer a "little extra leeway" in case of unexpected financial demands, Mr Howard explained that they should not be used regularly as a means of credit. "If you find yourself regularly reliant on your overdraft then chances are you have a fairly serious problem with debt," he said. Anyone in such a situation was advised to get free debt advice from a group such as the CCCS or Citizens Advice.

The CCCS is a registered charity. People can go to it for free and confidential debt advice and help. Users may telephone to speak to a counsellor or go online. The organisation claims to have a "proven and successful formula" for helping people to manage debt and has given assistance to thousands of people on the matter.

Written By: Paul Gilligan

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