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Getting out of a persistent overdraft

Overdrafts feel like part of your account, but they're a debt. Here's how to move out of the red for good.

Overdrafts3 min readReviewed July 2026

The first step is to stop treating the overdraft limit as your balance. Move the salary date and set a target 'true zero' balance you rebuild towards each month.

If the arranged rate is 35–40% EAR, ask the bank about a fixed repayment plan, a lower-rate loan, or a switching offer that includes an interest-free buffer.

Persistent overdraft users have specific protections in the UK — banks must contact you and consider whether the borrowing is causing harm.

General information, not personalised adviceThis article is written to inform. It isn't personalised debt or legal advice, and Debt Compass is not authorised by the Financial Conduct Authority. A team member can talk you through the options and point you to a free debt help service or authorised insolvency practitioner before you decide on anything.