How deal I with graduate overdraft debt?
Once you’ve decided whether to stick with your current bank or switch to another, it’s time to think about how you can pay off your overdraft debt. You should gather the following figures and information:
- How much overdraft debt you have outstanding
- How long your bank will let you borrow at 0%
- When the limit on this 0% borrowing will be reduced, and to how much
Once you’ve done this, you then need to set yourself a repayment target. By doing this, you can keep all your overdraft borrowing within the 0% limit for as long as it’s in place.
You’ll still need a detailed plan for how you’re going to reduce your debt. The best way to do this is by making a budget, which we can help you with.
Once your budget is complete, you’ll be able to clearly see the difference between your income and your outgoings. You’ll be able to spot ways to save money, and begin to reduce your overdraft usage.
Should I ask for my own overdraft limit to be reduced?
It can be difficult to stay within your overdraft limit. As you begin to reduce the amount of your overdraft usage, consider asking your bank to reduce your limit as you need it less and less. This can stop you from being tempted to borrow too much.
Should I ask for my own overdraft limit to be reduced?
It can be difficult to stay within your overdraft limit. As you begin to reduce the amount of your overdraft usage, consider asking your bank to reduce your limit as you need it less and less. This can stop you from being tempted to borrow too much.