Do you go overdrawn?

If your balance creeps into the red or stays permanently overdrawn, you need an account that charges you as little for using your overdraft as possible. If you flick between positive and negative balances, don't assume the best account for one is OK for the other.

Overdrafts are debts, and often they’re much more expensive than credit cards. So avoiding being overdrawn is always a good policy. If you go beyond, you’ll pay through the nose.

Try to get 0% overdrafts. Sometimes the cheapest option is actually to shift the debt to a cheap credit card. Usually, the easiest way to do this is to get a credit card giving 0% spending, for up to 18 months. Now everything you spend on the card is at the cheaper rate.

Spend on a 0% card for purchases instead of a debit card or paying with cash.

Doing this is technically the best solution for those with self-discipline - you can’t allow yourself to spend more on this card or build up more debt. You should stop using the card once your account is in credit, and try to pay the card off by the end of the 0% period.

If you move regularly between being in credit and using your overdraft, it's sensible to keep as much money in your account for as long as possible. Therefore, if you’ve the self-discipline, set all your household bills, direct debits and other standing orders to leave your account towards the end of your working month.

If you go into an overdraft by a marginal amount - usually not more than £15 - some banks will make allowances and not charge you the usual hefty fees. See below for a list of the standard buffer amounts and charges outside this limit.