Borrowers who use their cheque books to delay payments from leaving their accounts until after payday are set to have to pay for the privilege, according to research from financial research company Defaqto.

It’s research showed this form of payment is becoming more unpopular, over half of all 16-24 year olds questioned never write a cheque and a further 33 per cent only do so less than once a month.

Cheques are also losing popularity with retailers, stores including Asda, Boots, Currys and WH Smith have already said they won't accept cheques as payment.

Defaqto's David Black says: \”The future for the cheque is looking bleak, with the younger generation increasingly turning their backs on them.

\”They are relatively costly to process and in future, people who write them are likely to be charged."

Chiltern's Joanne Gill says: “For years people who are struggling with their finances have used the three day clearance time on cheques to give themselves a free overdraft at the end of the month, but it looks like this is now coming to an end as cheques are being phased out

\”When paying for utility bills and services, it is often better for a direct debit or standing order to be set up, as organisations often make a charge for customers paying by cheque.

\”Just be sure that you know how much money is entering and leaving your account and when, so that there are no shortfalls which could send you over your overdraft limit and incur unnecessary charges."