The Co-Operative bank has recently announced that they will be freezing interest on authorised overdrafts for the next three months.

The move will not only offer some relief after the Christmas period, but also offer competition on the high street, giving customers an alternative to the big five banks.

The offer will cover overdrafts from December 5th to April 4th, and after this period normal interest charges will apply.  

Robin Taylor, the head of Co-Op’s banking has said that they want to offer a helping hand to their customers who may be struggling after the festive period. He went on to say that the offer was not designed to be an incentive to new borrowing, but rather to help customers with existing debt to take control of their finances.

Many people review their financial situation at the beginning of the year. Robin Taylor has said that as a responsible lender, the Co-Op want to encourage people to take control of their finances by providing them with some leeway at the start of the year.

Customers could save up to £75 over the three month period based on a £2000 overdraft or over £18 on a £500 overdraft.

Research shows that the average adult built up over £749 in debt last year. Just over a quarter who have built up debt in 2011 have said that they expect to pay it off in the next 12 months. One in ten have said that they don’t expect to pay off any of their debts this year.

These findings show that more and more of us are struggling to cope with living costs and the ever rising cost of the festive season.

People who are struggling with their finances following the festive season should consider speaking with us today.  

We have a great rescue culture and there are a range of possible debt solutions that could be right for you. If you find yourself in trouble with debts, you should consider speaking to a financial advisor who can help assess your situation. Call The Debt Advisor today to discuss your options or visit www.thedebtadvisor.co.uk