Borrowers who find themselves in debt are arranging bigger overdrafts as it becomes harder to secure a loan or a credit card.

The credit crunch has apparently caused a massive increase in the amount owed on overdrafts.

ONLYFinance.com report that March saw an increase in borrowing of £217 million.

In the current economic climate it can be difficult to secure certain credit card deals and personal loans if you do not have an exemplary credit rating.

As a result, it appears that people may be relying on their banks to help them out with credit.

Banks may be more willing to help borrowers who already have an account with them as they have access to that person's monthly financial records.

Meanwhile, a recent report by Fool.co.uk has found that payments by credit and debit cards have soared, leading experts to warn that using plastic could lead to rising levels of debt as people do not physically see the money they are spending
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