Yahoo Finance 
How to get rid of your overdraft for good
Overdraft charges are back in the headlines, with the Competition and Markets Authority accusing banks of "limited transparency" when it comes to how much they're going to cost.
If you're in the red, you're likely to be paying a decent chunk of interest and/or fees each month for the privilege.
But there are some ways to get rid of your overdraft once and for all for very little cost. All you need is a little discipline.
Budget
Perhaps the most obvious way of fighting back against your overdraft is to start a budget, spend a little less each month, and start chipping away at it until you've wiped it out for good.
To do this, you should set up a spending diary as this will give you a good idea of exactly what you're spending where. All you need to do is get a small notebook, keep it in your bag/pocket for a week (or a month if possible), and note down everything you spend – however small.
Then look at areas you could cut back on. Even if you go for one of the other options below, you should still look at budgeting, particularly if you've been overspending.
[Ways to make and save money this summer]
Switch your current account
If you're being charged a ridiculously high interest rate on your overdraft, it could be time to switch to a new current account – preferably one which will allow you to use your overdraft interest-free.
However, the number of accounts offering free overdrafts has shrunk dramatically and don't offer long before charges kick in.
The exception is the FlexDirect account from Nationwide, a stonking current account, which offers a 12-month fee-free overdraft, subject to your circumstances.
You will need to pay in £1,000 each month though.
Another way you can dodge overdraft fees is to choose a current account with a free overdraft buffer. This will only work if you go into the red by a relatively small amount.
If you can pay in at least £1,000 a month, try the First Direct 1st Account which offers a £250 interest-free buffer. You do have to explicitly request this buffer, though.
Alternatively, the Co-operative Bank's Current Account Plus has a £200 interest-free buffer as long as you can pay in at least £800 a month.
You'll also get £100 for switching to both if you're a new customer.
If a year isn't going to be long enough to pay off your debts, then you should look at our next option.
Get a 0% money transfer
Suggesting that you take out more credit might not sound like the best solution to your debt problem. But in fact, taking out a credit card could help you to combat your overdraft.
That's because certain 0% balance transfer credit cards allow you to pay off your overdraft by transferring money from the card into your current account. This is known as a money transfer. What's more, you can get a 0% money transfer from several credit cards.
The best of all right now is the MBNA 31-Month Platinum Visa, which as the name suggests offers an interest-free period of two years and seven months.
It offers an eligibility check, which means you can see if you can get the card before applying without impacting your credit rating. Once you take out the card you have 60 days to do a money transfer.
Then there's Virgin Money's MasterCard and the Fluid Balance Transfer card, which both come with a 29-month 0% period.
Meanwhile, the AA Balance Transfer Credit Card comes with a 28-month 0% period.
However, as always, there's a catch. And that's the fact that you'll need to pay a fee of 4% of the balance transferred. This means that if you paid off an overdraft of £2,500, for example, using a money transfer, the fee you'd have to pay would be £100.
You'll also need to ensure you pay off the balance you've transferred within that interest-free period. If you don't, once the period is up, you'll have to pay interest.
You’ll also have to make the minimum repayment on the card each month. If you’re late with a payment, the 0% deal can be terminated and you'll also get a black mark on your credit report.
