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This article is for information only. It does not constitute advice. Chase Saunders Ltd does not provide services for savings, investments, mortgages or insurance. You should seek advice on these areas from a qualified financial advisor.
Be wary of going into red
Article Category: Debt Management Help and AdviceMany current account holders must be wary of going overdrawn, as they may be charged interest on their overdrafts.
According to financial comparison website MoneyExpert.com, nearly 40 per cent of all current accounts on the market offer an interest-free limit, however less than half of that number will automatically set up one up if people stray into the red.
It says that the number of accounts with a zero per cent buffer zone has increased from 32 last October to 63 now.
Of these only 44 per cent will automatically set an
overdraft up, meaning that most customers will have to contact their banks themselves to take advantage of the facility.
Sean Gardner, chief executive of MoneyExpert, said: “This is an example of a genuinely useful feature and it’s up to customers to ensure they make the most of it."
"A £500 interest-free overdraft could go a long way and for many should tide them into the New Year," he added.
He did though voice a warning to customers that if they did go beyond any agreed overdraft limits the cost of
credit could be "massive".
For more information about debt management call our advisors on 08000 122 118 for FREE, no obligation help and advice. Created on 31/12/2007 17:30:28
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