According to a three-year survey from Experian, the information services company, 52pc of these families regularly borrow money using their overdrafts. This results in higher repayments, as rates of interest on overdrafts tend to be higher than on other credit products.

Peter Turner, the managing director of Experian Interactive, said: “Families often rely on their overdraft to get by, but that is not always the best option. Many of us choose to borrow, but it’s where you borrow from that makes all the difference.”

Personal loans are often a cheaper way of borrowing than overdrafts.

Forty-seven per cent of adults have applied for additional credit in the past two years without properly researching the best rates, with some borrowing from sources which charge relatively high interest rates, the report found. This may result in adding to their financial pressures, running the risk of missed repayments and ultimately, a poor

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