Over Draft Cycle

Purplepineapple

I've just got rid of my 1k overdraft. I did it by decreasing the overdraft a small bit each time I was paid. There is probably something you can save money on. Food is usually a good one. The first few months are the hardest but it's very satisfying when you see that limit decreasing.

It's worth speaking to the bank. They might agree to stop the charges and agree to a way to decrease bit by bit. if not do as others suggest and open a new account. If your credit rating is bad anyway it might be worth letting it be passed to a debt collector and negotiating with them. After a while they will probably accept a partial settlement.

willstewart

I've, in the past, had a loan to pay off my overdraft etc.
My bank suggested this and it worked out fairly well for me.
i.e. needed say £5k for a home improvements, took out a £7k loan that cleared my overdraft (and I cancelled that), and ended up saving some money.

At present, my credit record is shocking and the last thing I want to do is cause myself issues where I bank. I doubt I would get anything beyond the most basic bank account at present, so holding on to what I have and trying to keep them sweet is a good thing.

Even a £ here, a £ there, whilst not much in the grand scheme of things, put towards reducing an overdraft is a positive step.
Reduced it today by another £30 (did want to do £25 but they only work in multiples of £10). £130 off it this month so far.
Don't want to reduce it by too much at this point as I don't know what will happen between now and my next payday.