Cash-strapped consumers 'should be wary of overdraft fees'

Cash-strapped consumers should be aware of the potential costs that unauthorised overdrafts could lead to, an expert has noted.

While some people may choose such overdrafts as part of their money management this month, Moneynet.co.uk's Andrew Hagger believes that arranging an authorised amount could prove a better option.

He commented: "If you don't have an agreed overdraft or you think you could do with a little more financial breathing space, contact your bank or building society and arrange an authorised overdraft."

Mr Hagger believes that some consumers may face financial problems this month because they might have received their December wages earlier than normal ahead of the festive period.

Meanwhile, research published earlier this week by Shelter has shown that a number of homeowners in the UK may have recently been forced to get into credit card debt in order to meet the costs of their mortgages.

Written by Martin Peacock.