When it comes to getting out of your overdraft, it can be very stressful. There is always something going on in your life that constantly puts you back in it. You might want to have a quiet month, doing nothing and spending very little. However, that is not the case when you are an adult. There is always that one friend who wants to go out or you have a family birthday coming up. Nevertheless, there are a couple of things you can do to get out of that dreaded overdraft of yours.
Use Your Savings Account
One of the best ways to get out of your overdraft is to use your savings account. Yes, you still need to have a quiet month of literally doing nothing however, you should still use your savings account if you have one. It might hurt you a little when using your savings account but needs must. The last thing you want to be doing is using your wage every month to pay back the fees of going into your overdraft.
Move To A Cheaper Overdraft
Another tip for getting out of your overdraft is to switch to a cheaper provider. Additionally, many banks will offer you money when you make the switch. This money can also be contributed to getting out of your overdraft. Other banks will offer vouchers or cashback over a few months.
Make sure to research your options to see if it is a viable option to switch bank accounts. Not every bank account will offer you money when you make the switch. Plus, some may charge higher fees for going into your overdraft.
Move Your Overdraft To A 0% Transfer Credit Card
Something else that you can do is make a switch to a credit card that is 0%. The reason why you make this switch is because a credit will tend to have a period where you pay 0% interest. Again, look at the different credit cards which offer you the longest periods where you don’t pay interest. That will give you enough time to put away money each month which will help you get out of your overdraft. Plus, it helps you improve your credit score of yours.
What To Do When You Are In Financial Trouble
In some instances, getting out of your overdraft isn’t possible. There might be debts which you are paying off every month. Due to this, you cannot get out of your draft however, there are some things you can do to make sure you get out of those financial troubles.
One of the ways you can reduce the amount of money you pay is by speaking to an IVA advisor. You will work alongside them to find how much you can pay each month and they will also help to reduce your debt. To do this, you can use an IVA calculator. That will work out your new monthly payments and reduce the amount of debt you need to pay to your creditors.