Struggling with overdraft debt?

If you're struggling with overdraft debts, you're not alone. In fact, an estimated 19 million people use an arranged overdraft every year while around 14 million use an unarranged version. The effects of continually running into an overdraft can be serious – but banks make a substantial amount of money from this.

During the 2018-2019 financial year, firms made in the region of £2.6 billion in revenue from overdrafts. Approximately a third of the funds generated from this came from fees and charges associated with the unarranged variants.

Overdraft debts are perhaps some of the most common in the UK and have the potential to quickly spiral out of control. Fortunately, as the figures demonstrate, this is something you don’t need to suffer with in isolation. Talking to us is the first step in regaining control of your finances.

Overdrafts - a difficult debt to clear

It's so easy to fall into the never-ending cycle of overdraft debt. You get paid and your overdraft amount reduces a little. However, the bills need to be paid so you begin using your overdraft facility again.

Most people don't even think their overdraft is real debt. However, in reality, these can be one of the hardest types of debts to clear. This is due to the combination of interest rates and how easy it can be to get stuck into a cycle of repeated use.

How can I reduce my overdraft?

Most of us have used overdrafts from time to time. That's fine, after all, that's what they are there for. These only become a problem when you find yourself getting deeper into debt. However, there are several options for resolving an overdraft. For example:

  • Move to an interest-free overdraft. This can be especially useful if it’s possible to move your negative balance to a current account which doesn’t charge interest.
  • Switch banks. Some banks offer deals for switching and you might be able to get cheaper or interest-free overdrafts.
  • Move your debt to a 0% money transfer credit card. Use a 0% money transfer credit card to clear your overdraft. You should then be able to pay back the credit card over its interest-free period.

Alternatively, if the situation really is too difficult to handle, then it’s time to talk to the professionals – it’s time to talk to MoneyFixers.

Get the help you need

If you’re struggling with overdraft debt, then we can help reclaim control of your finances. You can get in touch with a member of our team today for a no-obligation discussion about your circumstances.

Overdraft debt is something commonly experienced by people throughout the UK. Often, it builds and brings about real grief. We know this all too well and hear about the damage it causes every day.

Contact us and we can help you sort this today.