Martin Lewis' official website, Money Saving Expert, has issued a stern warning to people caught up in their overdrafts, dubbing the failsafe a 'danger debt' through its heavy fees which incur when used. An overdraft typically allows you to borrow money through your current account, letting you withdraw more than your contents.
But almost every bank has rates of around 40 per cent according to MSE, which is far higher than your typical credit card rate. However, always full of advice, Martin's site has explained that there are numerous ways that you can cut overdraft costs and save money.
The latest MSE newsletter recommends firstly checking to see if you can switch to a 0 per cent overdraft. Although there's no guarantee of this, as well as no certain method to have your existing overdraft's limits matched - it's worth exploring all avenues.
