5 ways to fix an overdrawn bank account

Published by
WIlliam Dube

An overdraft facility can be used as a credit solution to ensure that transactions are completed even when there is no money in the account. Such a service is useful when you need money to complete a transaction that must be completed, and it should not be underestimated.

However, overdraft fees apply, so the more money you owe for an overdraft, the more money you will pay in interest. Furthermore, some of the transactions made may not be of high priority, putting your money at the risk of being deducted in the end for money that was never intended to be used in the first place.

It’s possible that you’ll want to fix your overdrawn account at some point. This could be because you don’t like how your money is being deducted, or because the interest rates are too high, or for any other reason. You will need a strategy when attempting to fix an overdrawn account.

Fixing an overdrawn account will benefit you in a variety of ways. Some of the ways that an overdraft account can benefit you include:

  • Maintaining or increasing your credit score,
  • Enabling you to have access to future credit, and
  • Avoiding collection fees and interest on loan.

Use the following 5 ways to fix your Overdrawn account:

  1. Avoid using the overdraft facility

The first step is to refrain from using your overdraft facility any further. This will allow you to concentrate solely on repaying the amount owed to your overdraft facility. During this time, you may face temptations and may need to take drastic measures.

Pausing your account can help you avoid using the overdraft facility in the future. Use this method if you suspect or know that you have subscriptions on your bank account that are past due before you make full repayment.

The goal is to repay an overdraft in full so further usage of the credit line will result in more money owed. Your entire budget for repaying the account will have to change as a result of this process. If you want to clear your overdraft debt, take strict measures to avoid using your overdraft.

  1. Set a target to repay the full debt

Set a target date for fully repaying the overdraft amount and ensure that you will have enough cash during the repayment period to repay the loan amount. The duration can be whatever you want it to be, but the sooner you repay the entire amount, the better.

Since an overdraft facility is a revolving loan, you are not required to pay the account in full. Future deposits to the overdrawn account, on the other hand, will first repay the overdrawn amount before any money is available for use.

As a result, you will begin with a negative balance. Banks are not particularly strict when it comes to overdrafts; however, failure to repay the outstanding amount may result in legal action.

When determining your repayment target, make certain that money is consistently deposited into the account. The less time it takes to repay the loan, the better. If you do not make your payments on time, your overdraft facility will be reduced or revoked.

  1. Include the amount payable to your budget

You must include the amount owed to your account in your budget to demonstrate your commitment to clearing it. The sum can be divided into several payments that can be made over time.

Income earned over the course of a week or month can be used to cover the overdraft because the amount is included in the expense section of a budget. As a result, it will be clear how much income is attributed to covering the overdraft.

  1. Make deposits to your overdrafted account

You can make consistent deposits to the account regardless of the amount owed for an overdraft. You can make deposits with the money you earn from investments and other sources of income.

The goal is to keep the balance owed as low as possible. You can set up automatic payments to the overdraft account to relieve yourself of the burden of remembering to make deposits to the account.

  1. Speak to your bank

One of the best things you can do is talk to your bank about your overdraft issues. Given your situation, your bank may be willing to reduce the interest rate on the account. The bank may also be able to assist you by suspending charges associated with your overdraft facility, such as the overdraft facility fee.

Interest on overdraft and fees for using an overdraft facility will not be eliminated entirely. They will be halted for a set period of time to allow you to repay your debt. The use of an overdraft facility in the future will be subject to interest and fees.

If you believe your overdraft facility is too high and you are over-indebted, your bank may be able to assist you in lowering the overdraft limit. This will require you to provide current earnings so that the new overdraft facility can accommodate your current income. 


An overdraft has drawbacks, but it can be used as a financial leverage tool to finance your bank account when it has no money. Abuse of the overdraft facility may result in a situation in which one becomes overly indebted. It is advisable to manage an overdraft facility in the same way that you would with any other type of credit.

WIlliam Dube

William Dube is a finance and economic news expert with over 10 years of experience in economic anaylsis, financial product assessment and market analysis. With a numerous certificates from prestigious universities including but not limited to Yale University and the University of Pennyslivenia. William specializes in providing insightful news developments in South Africa and commentary on investment strategies, risk management, and global economic trends. You can contact him on

Published by
WIlliam Dube

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