You can then take action to pay off your overdraft. These are some methods you could use:
1.) Gradually reduce the amount of your overdraft you spend each month
Try reducing the amount you spend each month by first looking for savings in your budget. Make sure you don't spend all your overdraft each month.
Speak with your lender to make sure the amount you decide to pay is enough to get you out of your overdraft.
2.) Repay the balance using credit with a lower interest rate
You could consider transferring the balance to a credit card which has a lower, more affordable interest rate. Or, you could use an affordable loan with a lower interest rate to pay off your overdraft, and then pay your loan off with a set monthly repayment.
If you get a credit card, don't spend anything else on your new card. Shop around to get the best deal, and use a price comparison site to help you. Finally, check you’re eligible before applying, as applying for more credit may appear on your credit file.
If you choose to repay your card with other credit, keep up with your repayments to avoid extra charges and interest.
3.) Shift your direct debits
One way to reduce the interest and charges you’re paying on your overdraft is to make sure your direct debits and standing orders are as close as possible to when your income arrives each month. That way you’ll spend less time in your overdraft.
4.) Consider separating your overdraft from your day-to-day banking
Speak to your bank about how to do this. They may allow you to set up a new bank account with no overdraft from which you can do your day-to-day banking. This means you’ll be able to treat your existing overdraft as a simple debt that needs to be paid off gradually, and might make it easier for you to stop spending more of your overdraft.
5.) Use savings to clear your balance
If you currently have a pot of savings, it makes sense to use this to clear some or all of your overdraft. That's because the amount you'll pay in interest and charges will far outweigh the amount of interest you'll be gaining in your savings account.