Many people have an overdraft facility and use it quite regularly. It can be useful to cover emergencies if you run out of money and need some in a hurry. However, it can be easy to start getting into the habit of getting overdrawn each month and perhaps not having enough money each month to clear the overdraft before you start borrowing again. This can be extremely expensive, particularly if you use an unauthorised overdraft and so you should work on paying it back and staying in the black as soon as possible.
It is worth making a pledge to yourself to get this in hand. Make sure that you are prepared to be focussed and make some changed in order to get it paid off. It may not be easy, so you will need to keep focused on it. It could be worth writing it down as a goal and fixing a date as to when you want to no longer get overdrawn on a regular basis. Making a specific goal like this can really help you to stay on track and if you write it down and place it somewhere you look each day, you will have a constant reminder.
It is good to start by seeing whether you can reduce your spending. There are many changes that can be made to make things cheaper, even things that you normally buy. This means that you can reduce what you are spending without having to go without. Things like switching suppliers, or going to different shops to buy things could help and so it is worth looking at price comparison sites to see whether you could save money. Even a little bit here and there could add up to an overall significant saving. You will also be careful about what sorts of things you spend money on though. Think about each purchase and whether you can find it cheaper or perhaps even do without it. It can be hard going without things, but if it means that you can stop getting overdrawn it can be worth it, especially if they are luxury items that you do not need.
It can be worth seeing whether it is cheaper for you to borrow money a different way. Using a credit card might be cheaper than an unauthorised overdraft as long as you pay it back as quickly as you can. You may even be able to borrow from a friend or family member which would be cheaper, although this can lead to problems if they need the money before you can afford to pay them back. If you cannot change the way you borrow, it could be worth asking the bank if you can have a larger overdraft. If you borrow more than you are allowed or borrow when you have no overdraft facility then this will be really expensive. An unauthorised overdraft can be one of the most expensive ways to borrow money and so should be avoided wherever possible.
Timing your spending is crucial as well. Keep checking how much money you have in the bank and know when you have money going in. Then you can wait until there is some money n there before you buy things. It is easy these days to check a balance on an ATM or online and so you should easily be able to keep a check on what is going on in your account.
Making more money is a way to stop the overdraft without having to go without or reduce spending. This could be easier, especially for those who find it hard to spend a small enough amount but have already cut back as much as they can. You could try making money doing some freelance work, selling things, working extra hours in your job or taking on a second job. You could find some work online as there are plenty of opportunities if you hunt for them. They may just be small irregular jobs, but it could be enough to help you out of a tight spot.
It is worth making sure that you try to maintain your new ways once you get out of debt. Work hard to monitor your spending and stick to a budget. Think about whether you need the things that you are buying and compare the prices to make sure that you are not paying too much. You should also be on the look out for opportunities to make more money and even if you do not need it immediately, you can save it ready for when you do. Building up some savings, once the debts are paid off, can be really worthwhile. Make sure though, that you do not have savings and debt as this is not worth it. Debt cost a lot and savings do not earn much interest so usually it is much better to pay off the debts with savings, particularly in the case of expensive ones like overdrafts.