Martin Lewis: Get PAID £125 and reduce your existing overdraft by doing THIS

Many people don’t treat it as such, but an overdraft is a debt like any other and fees can be horrendous, according to Martin. 

A constant £200 overdraft could cost you £365 a year, and if you bust the limit they can be worse than payday loans. 

So to cut your overdraft, you have to first cut the cost, so more of your money goes towards cleaning the actual debt. 

Right now you can get a 0 per cent rate and even get paid, helping you slash the overdraft further – and Martin reveals how on the Money Saving Expert website. 

Option one: Get paid £125 to grab a £250 0 per cent overdraft – suitable for those with overdrafts under £400ish. 

Newbies applying via this First Direct  link get a £250 0 per cent overdraft and £125 to switch to it (£100 if you apply direct). 

Use the free £125 to reduce your existing overdraft and then you’ve got time to pay the rest down. 

You must pay in £1,000 a month or there’s a £10 a month fee.

Option two: Get a (potentially) larger 0 per cent overdraft for 12 months – suitable for those who can pay it off with 12 months

New customers to Nationwide’s FlexDirect get a 0 per cent overdraft for a year (50p a day after). 

There’s no set limit as it depends on your credit score, but many have had success. 

Plus if you’ve got a friend who’s already got a Nationwide account, you can both get £100 if you switch via Nationwide’s recommend a friend scheme. 

Option three: Shift overdrafts to special 0 per cent credit cards 

A money transfer card works like a balance transfer, but instead of paying another card off it puts money into your bank, so the overdraft debt is cleared, and you owe the money transfer card instead. 

They’re useful for big overdrafts, but come with a fee.

Money Saving Expert’s overall top pic is Virgin Money which gives accepted customers 32 months 0 per cent for a one-off 2,5 per cent fee of the amount shifted. 

All the accounts require a credit check. 

For more information and recommendations to slash overdraft costs, visit www.moneysavingexpert.com. 

Martin also revealed how to find the cheapest petrol in your area this week.