Edinburgh, Great Britain (PressExposure) February 26, 2010 -- Recent statistics show that around 10 percent of the UK citizens are constantly overdrawn - and struggling with serious debt problems.
Research done by IVA shows that as many as 5 million UK citizens make purchases everyday on their overdrafts. It is said that another 10 percent will find themselves in the red more than 5 times per year.
The statistics show that the overall financial situation in the UK has improved somewhat from a year ago when 15-20 percent of UK adults were permanently overdrawn.
A major contributor to this increase was the rise in inflation as well as unemployment levels that were keeping incomes down in the UK.
There are many dangers with living with a large overdraft. The first being that it can be very expensive debt to carry around with you if you haven't made some kind of arrangement with your bank.
The other problem is that your bank may choose to reduce your limit at any time and this can make things very difficult. UK banks are not required to give any warning when doing so.
Stats published by the Office of National Statistics show that annual inflation is on the rise by 2.9 percent in January which is the 2nd largest increase in a two month period.