One in three Brits rely on overdrafts to pay bills Figures suggest that consumers are being forced to cut back on spending and even use their savings in order to stay afloat - with one third of Brits using an overdraft in the last year alone. Households squeezed by rising mortgage and rental payments coupled with outgoings means that there is an increasingly reliance on overdraft facilities, with those aged 18-34 the most common users. While it can be a useful financial buffer, it's all too easy to be stung by the cost of unauthorised borrowing. Research shows that someone who constantly makes use of their £500 overdraft may be paying almost £200 a year more than they need to. Kevin Mountford, head of banking of Moneysupermarket.com, said: "It's really important consumers take the time to look at their finances and work out which products best suit their circumstances. Those who find they dip into their overdraft regularly will need a different account to those that occasionally fall into the red. By switching current accounts, people can end up saving themselves hundreds of pounds in unnecessary charges every year. He continued: "Switching a current account is still an option as many providers will match existing facilities based on personal circumstances. Alternatively, consolidating an overdraft onto a low cost personal loan may be a cheaper option if you are permanently overdrawn. Consumers who do this need to be disciplined and ensure they don't dip into their overdraft facility again. Consumers who are always in the red should consider the Nationwide FlexAccount which charges a rate of 18.9pc on authorised overdrafts, costing £93.60 per year. For those who only go overdrawn from occasionally, worth a look is the Reward Current Account from Halifax, which charges £1 per day for overdraft balances under £2,500.