‘Living in your overdraft’, is a common and all too easy thing to do. Sometimes it can be a problem that has happened bit by bit, or sometimes it can be as a result of a splurge or emergency.
Whatever the cause, it can be easy to forget that your overdraft is a debt and to simply accept the monthly fees that may be attached to it.
If you are looking to get out of your overdraft, then here are three simple tips:
- Set yourself targets for gradually moving out of your overdraft. You could aim to move £50 (or whatever you can afford) out of the overdraft every month.
- You could take out a loan at an interest rate that is lower than your overdraft.
- Separate your overdraft from your banking. If you speak to your bank about this, they may let you open another account with no overdraft, move all of your direct debits and salary payments etc. You can then treat your overdraft as a debt and pay it off gradually.
For more information visit our Overdraft Debt page.