Nearly there - What would you do?

EssexHebridean

Just for some  background on this for others who may be reading in the future because they are in a similar situation - the OD really should have been advised as the first debt to clear - for several reasons.

First off as RAS mentions above, it can make it really difficult to change bank accounts without having to clear the whole OD in one go - and this means you are reducing your options for gaining switch bonuses which a lot of folk have very effectively used to help pay down debt. 
Second - ODs are what we often call "dangerous debts" on here - the reason being that generally, banks have the right to call them in at any time, and with pretty much zero notice. As a general rule, it doesn't happen, but it can - so it makes sense to reduce the risk. 

The two possibilities we would usually recommend at the Lightbulb moment for dealing with ODs are:
- Make it your first focus, so all surplus identified in the original SOA is directed towards the OD, and as the amount overdrawn drops, you request a corresponding drop in OD limit. (As was recommended above for the OP)  OR
- Open a new basic bank account at an institution you do not have debt with - this has the effect of simply turning the OD into a normal unsecured debt, and you then treat it like any of your other debts. Its other advantage is that it removes the risk of "setting-off" by the banks - where they use money going into a current account to "set-off" against another debt with them. Again, something that rarely happens, but it can do.

Dakota_Rose

We found asking the bank to reduce the overdraft in intervals to be the best way to get out of ours. As you would have done with the credit cards, over the month, try and throw any money you can generate at it and you will get there in small steps. As another poster has said, aim for the interest fee plus more each month.

It is hard to get out of the habit of going into it. Once you focus on making it smaller rather than larger/stagnant each month, you will start to make progress. I will never use an overdraft again - awful things!

ManyWays

I would certainly stop adding any more to the LISA and leave that money in the account, reducing the overdraft.

If your credit score is good, you can look at getting a 0% money transfer (not a balance transfer) to clear or reduce the overdraft. But you then need to see clearing that as a priority.

sourcrates

A bank overdraft is a very, very expensive way to borrow money, and can be a devil to get away from once your within its influence.

I found the nuclear option to be quite productive, you simply stop using the account and go cold turkey, get yourself another basic bank account sorted out, and transfer all your income/expenditure to that new account.

You instantly start to live within your means from day one, and your old "account" becomes just another non priority debt to service as and when you can.

You can ask your old bank to help you out by stopping interest/charges etc for as long as they will do so, instant results, and if you`re already in debt your credit report won`t be your top priority, so no real downside to it.

tigergambit

https://forums.moneysavingexpert.com/discussion/comment/81862498#Comment_81862498

100% agree - this is what worked for me!