Overdrafts: How to avoid the 40% interest rates (and then clear your debt)

This year the banks were made to bring in a simplified single interest rate charge for overdrafts. The hope was this would make it easier for people to work out how the cost the existing mix of daily fees, interest and other charges.
Well, it's certainly a lot clearer - but sadly it's not necessarily going to be any cheaper to go overdrawn. The banks pretty much all decided to charge around 40%. For those that only rarely use an overdraft, it'll actually be cheaper. But for people who "live in their overdraft" it'll probably cost a lot more.
Either way, at 40%, an overdraft is now one of the most expensive ways to borrow money! So if you regularly use one the best way to beat these costs is to clear the overdraft and get your bank balance back in the black.
So here's what you can do to bring down the cost and then start clearing it.
#Overdraft #BeatDebt #SaveMoney
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▶︎▶︎▶︎ FURTHER READING
How to cut the cost of your overdraft
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Andy Webb is a money blogger and journalist. He runs the award-winning website Be Clever With Your Cash, presents Channel 5’s Shop Smart Save Money and writes every month for Reader's Digest. Andy also founded the community ukmoneybloggers.com.
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Content in these videos does not constitute regulated financial advice. Any offers mentioned were correct at the time of filming.

[@BENBOBBY]

Thanks for the tip regarding the £500 interest free overdraft, hadn't heard about that. You deserve a lot more subs!

[@BeCleverWithYourCash]

Thanks! It's just a shame the £500 is only temporary as the full rates come in once it ends.

[@sparkles1260]

Thanks for the info.

[@houdafadili2290]

Thank you so much .. you saved me a lot of money by this information especially the free interest buffer which I requested immediately and got it offered .. I am so grateful .. bless you

[@BeCleverWithYourCash]

That’s so good to hear

[@asher0078]

New subscriber love your content thank you ✨✨✨✨

[@BeCleverWithYourCash]

Thanks for subbing!

[@zizifun7540]

Thank you

[@SajadAli-to3jn]

I don’t have any overdraft but I want to get an overdraft which is the best bank to go for as a first overdraft account

[@BeCleverWithYourCash]

First direct offers a £250 overdraft at 0%, so that’s the best for small amounts. Beyond that try Monzo or Starling, but ideally look at other ways to borrow