According to a recent report it appears that the use of overdraft facilities has increased. The report claims that due to the restricted access to loans and other forms of credit such as credit cards, which has stemmed from the global credit crunch, has resulted in the popularity of overdrafts.

More people are now turning to their overdrafts in order to fund their financial needs because they are unable to get access to affordable loans or credit cards. Since the arrival of the global credit crunch many lenders have now tightened up on their lending criteria, which have now made it more difficult for consumers to get finance.

With many households across the UK suffering financial problems as a result of the rising livings costs and bills, many now find it difficult to stay afloat without the safety net of being able to get credit.

Many people have now had to turn to their overdrafts in order to get the finance that they need, and according to recent figures the last couple of months has seen a sharp rise in the level of overdraft use amongst banking customers.

Consumers have had to cope with rises in costs such as energy bills, council tax, water rates, petrol, and food prices.

It now appears to be unlikely that the financial markets will get back to normal for some time, and so many people in the UK are relying on their overdrafts and other short term solutions, such as pay day loans to keep themselves afloat.