One in ten 18-24 year olds have three or more current accounts

Young people aged 18-24 appear to be taking advantage of overdraft facilities offered by providers by taking out multiple current accounts, research by Callcredit Information Group (CIG) has found.

Almost one in ten (9%) adults aged 18 – 24 years admits running three or more current accounts with overdraft facilities and 27% of 18 – 24 year olds who have more than one account admit to using more than three different current account providers.

CIG’s research also indicates that 9% of British adults over-inflate their income when applying for credit in a bid to secure a higher credit limit, with 6% of those surveyed acknowledging that they have applied for credit knowing they might not be able to meet the repayments.

The research also revealed one in four mortgage holders would default on their mortgage if their monthly income dropped by just £300, with this rising to three out of ten (32%) among the 44 – 54 year old age group.

Graham Lund, Managing Director, Callcredit Information Group, said:

“While the end of the recession may be in sight, it seems that many consumers continue to struggle in managing their finances. What’s particularly concerning is the proportion of young people who appear to be targeting multiple providers for access to multiple overdraft facilities. Lending and borrowing responsibly to ensure affordability is vital for the recovery of the economy and lenders need to have a complete customer view – not only of accounts held with them but externally too – to ensure a consumer is not overburdened with credit.”