There was a time when I would not look twice at the charges for my unauthorised overdraft. Debt was just a way of life fraud with misery and uncertainty.
I still remember the day when I left the supermarket in shame while my shopping stayed behind.
Yep; my card was refused because I’ve reached the limit of my overdraft.
I still remember looking at my bank statement after nearly a decade and adding up all the money we’d paid on overdrafts be these authorised or not.
These times are well behind us. We paid off our debt, we maintain a freedom fund and we have new investments. Still sometimes, because of oversight or timing, we get into our agreed overdraft. And we pay the fee.
Debt is one of the biggest problems of our time. Recent data from the Office for National Statistics shows that the situation with debt in the UK is worse than any time on record. In 2017, the level of household unsecured debt (credit cards and payday loans) exceeded £205bn and many borrow just to keep the roof over their heads.
Personal finance experts would say that many in the UK live beyond their means.
I’d say that in the UK sadly lack the means to keep alive.
This is not a personal matter and solving the debt crisis would require profound social and economic change.
What is down to you, however, is to know the heavy burden that debt in general, and dipping into your unauthorised overdraft specifically, carries.
The infographic below shows what is an unauthorised overdraft and what are the charges you may expect to pay.
Provided by Sunny Loans