UK Bank Account Charges Are Sometimes More Expensive Than Payday Loans'

According to the research conducted by MoneySavingExpert.com, unauthorized overdraft charges can turn up higher than the borrowing the same amount on payday loan.

The website offering individuals money solutions, gives an example in which a major bank charges £150 for going £400 over an agreed overdraft limit for four days, while borrowing £400 for four days from a few payday lenders would cost as little as £15 in interest. The difference is evident.

Think Money bank accounts expert says that we should understand that we compare 2 different types of borrowing - unauthorized and agreed. He says that unauthorized borrowing is by its nature more expensive than agreed one.

Individuals with poor credit history should consider managed bank account as a good option. Managed accounts are associated with the fact that your money is divided into spending money and money needed for essential payments like bills. Thus you can preserve the money you will need for bills and avoid pending bills.

Unfortunately, managed accounts are not enough for individuals in unstable financial condition. The right thing to do is to ask for experts' advice, because only well-informed professionals can find the best solution.