With many Briton's fearful of taking out yet another credit card in the current economic climate, people are turning to their overdrafts instead, seeing this type of borrowing as more acceptable, despite it being just as expensive as borrowing on credit cards.

Tuning into this trend, one of the major banks has introduced a system which allows it customers to extend their overdraft limit by £250 for a period of five days, all for the bargain one of fee of £22.

For many this may seem like a lifeline, an extra £250 for emergencies tucked away at the back of our overdraft, but the reality of it is that it is just another way for the banks to make money from its customers and encourage debt.

A spokesman for the bank defended the move, saying, "This replaces the existing service where internal limits that determined whether we bounced or paid an item were not made available to the customer - it's just customers will now be able to see clearly how this works.

"Ultimately, it is a safety net and we do think people will run their accounts responsibly but there are occasions when something doesn't quite work out and flexibility is necessary for customers to get payments made - this just gives them peace of mind, a five day period to sort it out, at a reasonable fee of £22."

Financial advisor Danny Cox disagreed, warning customers that "overdrafts and credit cards are the most expensive ways to borrow money, so unless it is for short term (clearing balances every month for example) it is not an efficient way to borrow and actually prolonged use will make the problem worse and worse as more charges and high interest kicks in.

"If you do use an overdraft, agree a limit with the bank and this should work out cheaper than unauthorised borrowing or credit card debit, where interest rates typically exceed 20%," he said.