Young people exploit multiple overdrafts
Young people are risking their financial future by opening multiple current accouts to maximise their access to overdraft facilities, according to a new report.
Research by YouGov, on behalf of Callcredit, found that nearly one in ten (9%) 18 to 24 year olds have three or more current accounts in their name with an overdraft available.
Of those with more than one bank account, 27% of 18 to 24 year olds have opened them with more than three different providers.
The study also found that 11% of this age group have overestimated their earnings when submitting a credit application.
Callcredit said the findings regarding young people are “particularly concerning”.
Across all age groups, the research discovered that one in twenty people have stopped paying off their bills and have opted for minimum fixed payments.
“While the end of the recession may be in sight, it seems that many consumers continue to struggle in managing their finances,” said Graham Lund, Callcredit managing director.