Category: Overdrafts

Overdrafts

Top Tips on paying back your Overdraft Fast!

Being overdrawn in your bank can be stressful, especially if you are not sure when the next chunk of money is coming in to pay it off. You may worry that if you do not have some money to cover it soon, that you will end up paying huge amount of interest and charges.

There are two types of overdrafts, an authorised overdraft and an unauthorised overdraft. Your bank or building society may call them different things, but essentially one you arrange with them and one you don’t. Although both will cost money, an authorised overdraft will be cheaper, it is likely to have a lower interest rate and may not have any charges. An unauthorised overdraft is anything over what you have arranged with the lender and this will have a higher interest rate and it will have charges. There could be a one off charge and there may be a daily charge as well. This can be one of the most expensive ways to borrow money, which is why it is wise to pay it back as soon as you can.

If you have any savings or money in any other accounts, then use this to pay off the overdraft. It can be hard using savings for this as you may have worked hard to get them and be saving up for something specific. However, it will be much cheaper for you in the long run and without such high overdraft fees you will be able to afford to save up again in the future.

Most people with an overdraft are unlikely to have savings and so things can be more difficult. However, there are still things that you can try. If you have a job where you are paid regularly, then it could be worth asking for an advance on your salary. Some companies, particularly large ones will help you by doing this for you.

Another idea is to try to do some extra work. You may find that your employer may be able to give you some extra work but this may get you the money quickly enough. It can be worth discussing it with them though as you never know what might come of it. You could look for some work extra to what you do in your regular job. Do check with your employer though as some will restrict the types do things that you do and some will not allow it at all. You may be able to find some work using the skills that you have, perhaps an evening job or a weekend job could help. However, if you need the money quickly then you need something that you will give you cash fast. You could find a cash in hand job or something like waitressing or bar work that will give you tips that you could pay into your bank. Another way to get some money quickly is to do some online work. There are scams out there, but there are some genuine opportunities as well and so it is wise to do your research before taking on any work. Read reviews, chat to other people, look on message boards and forums that you trust to find out more about the websites and companies.

Another way to make some quick cash is to sell things that you have but no longer want or need. Many people have clothes that they no longer wear, items they no longer use, gifts that they did not want or things like this that they could consider selling to make some money. Depending on the types of items that you have for sale you could use social media pages, auction websites, or you could sell offline to friends or at a sale.

Borrowing money from other sources could be a possibility as well. This may sound odd, but an overdraft is a really expensive way to borrow money and so if you can find a different way to do it which is cheaper then although you will still have a debt, you could pay less for it. Do check the costs of the debt not just comparing the interest rates but looking at the whole cost over the term of the loan. This is because the longer you take to repay, the more expensive it will be and there may also be additional charges. A credit union could be a good place to go if you want to borrow a fairly small amount of money and feel that perhaps other lenders would not help.