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Complicated Overdraft Charges Under CMA Radar

Customers are often confused about banks’ overdraft policies and end up choosing the wrong account, an inquiry of the Competitions and Market Authority (CMA) found. The variety of policies and exclusions make account holders face unexpected charges and end up in bad debt.


Cost of going into the red by a hundred pounds varies between £16 and £60 from one bank to another. Financial companies also add interest on unauthorized overdraft amounts, therefore, the longer customers use the facilities, the more cost they will incur.

Sylvia Waycott, spokesperson of told the Express newspaper:The number of charges and scenarios on current accounts can be very confusing. This is because the way we spend tends to vary from month to month as we cope with bills, birthdays and holidays.” She also added: “”Charges should not be a mystery to work out nor a nasty surprise”. Bugeting without knowing the cost of using overdraft facilities can result in unexpected fees and bad debt.

The CMA found that it is extremely hard for customers to compare competitors’ products, as the charges structure is too complicated. It urges banks and building societies in the UK to simplify fees and inform customersof the cost of borrowing. The authority has recently called for a detailed review of small business and personal banking in Britain, and overdraft charges are likely to be in the focus of the inquiry.

Until the bank charges structure is simplified, should contact independent advisors to help choose the most suitable product for their needs.file2751345357121

How to Repair Bad Credit Yourself

There are more and more credit repair services advertised online and on the TV, but not many people know that bad debt help is closer than they think. It is possible to eliminate bad debt on your own, using the below DIY methods. If is not going to cost you a lot of money, and you will be able to see the same results as a professional debt management company, if you follow the instructions below.

credit management

repair your credit

  1. Get your credit report

The first thing you have to do is to get a copy of your credit file. The good news is that it is currently available free through the Internet, and you can get it much cheaper than if you were ordering it as a part of a debt management plan. You have to have all the information detailed in there and get all discrepancies sorted out before you go ahead and start to eliminate bad debt.

  1. Evaluate your credit commitments

You have to make a list of all your credit commitments and monthly payments. If you are struggling with bad credit, chances are that your credit payments are currently over your budget and you don’t have enough income to cover all your expenditure. The only way you can solve bad credit is to reduce your payments or increase your income.

  1. Look for debt solutions

There are plenty of solutions available for you to eliminate bad debt, like consolidation loans or budgeting better each month. Ensure if the family budget is involving more than one person, you will sit down and look for solutions together. That way you can get everyone agreeing in the methods and next steps.

  1. Eliminate bad debt

After you have found bad debt help by speaking to your creditors, advisors, or different agencies, you can start your debt consolidation plan. Start applying the debt solutions from day one and stick with them. You have to ensure you are keeping all the important dates of payments and salaries noted on your wall calendar, to ensure you can repair bad credit by making payments on time.

  1. Repair bad credit

You need to ensure you are sorting out all the disputes and are setting up all your payments on direct debit. You are usually free to change your payment date, and it is advisable that you are also creating a spreadsheet to know when are your payments due. Schedule your repayments after your payday and stick with the plan. You have just saved yourself a lot of money by not paying for a costly debt management plan.

How to Get Out of Debt on Your Own

There are loads of stories around all telling you about the best ways to get out of debt for good, but there is still loads of information missing with regards to the steps you have to take. Getting out of debt is a lengthy process that involves careful planning and budgeting, and although there are many debt management services the solution that is tailored to your needs is hard to find.


The right way to get out of debt is to evaluate your credit situation and find the most suitable solution for that. It will depend on what type of debt you do have and how bad your credit rating currently is. Loads of advice is available on the Internet on debt management, and there are specialist debt counselling services that can give you a general guideline on how to get out of debt.


As said above getting out of debt involves assessing your financial situation, budgeting and consolidating the most expensive credit in order to reduce your monthly outgoings. There is another option that many people use to get out of debt faster than normal, by increasing their income, but this option is less viable these days when employment level is low, and people should be happy really to hold one full time job.

The first step to get out of debt is to evaluate your credit situation. You need to collect all the bills and credit contract you might have. It is vital to know your balances on your loans, credit cards in order to be able to start the process of getting out of debt. If you can create a spreadsheet on the computer, it is important to put them down as they are. It will help you see clearer about your credit.

get out of bad debt

bad debt

The next step is to have a look into your other outgoings and budget. Try and reduce your monthly bills by switching suppliers or signing up for a cheaper option, and cancel all the subscriptions you do not need. There might be some premier channels you are subscribed to or other bills.

Is it costing you much to have credit? If it does, it might be that you are on a high interest rate or are incurring charges.