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Tips to pay off your overdraft

Put a plan in place with these five simple tips for paying off your overdraft.

1. Return your account to a positive balance

If you’re in overdraft and you don’t return to a positive balance (more than $0) you’ll pay interest, which could increase your debt.

So, if you can, always try to pay off the amount owing on your overdraft. Not only will it reduce the amount you owe, it’ll also reduce the amount of interest you pay.

2. Give your overdraft a break

Using your overdraft while trying to pay it off could mean you pay more interest and take longer to get debt-free.

If you can, stop using your arranged overdraft until you’ve paid the amount owing. Pressing pause like this could help you get on top of your money.

3. Lock in repayments

Locking repayments into your budget is an easy way to help you stay on track. The more you repay regularly, the less interest you’ll be charged and the faster you’ll pay off your overdraft.

  • Add a new item to your budget. You could call it ‘monthly overdraft repayment’ or ‘debt destroyer’ – whatever works for you.
  • Set an amount. It helps to check the rest of your budget and see how much you can pay off.

You may need to look at the rest of your budget first to see if you could cut spending in other areas.

Tools and resources

Managing your money

It helps to track your spending and set a budget. Check out our budget planning tips and use our online tool to help manage your money. 

Plan your spend

Tame your debt

Borrowing money can be useful to get the things you need. But if your debt becomes hard to manage, check out our tips to get it under control.

If you’re in financial difficulty, we may be able to help. Call us on 0800 269 296.

Tips for managing debt

4. Got savings? Make them work harder

You’re likely paying more interest on your overdraft balance than you’re earning on your savings. So consider using some of your savings to reduce your overdraft balance. 

Whether this option is right for you depends on your situation. You may want to get independent financial advice. 

5. Talk to us

If you find it hard to stay within your arranged overdraft limit, call us on 0800 269 296.

We can chat about options that could help keep you on track. 

More support

Financial hardship assistance

We understand things don't always go to plan and when you're experiencing financial difficulties it can be overwhelming. Find out how our dedicated team might be able to help if you're experiencing a hardship event (e.g. loss of job, illness, a relationship breakdown).

Financial hardship assistance

Budgeting services

MoneyTalks provide free, confidential and non-judgemental budgeting services throughout New Zealand. 

MoneyTalks website

Important information

Eligibility, lending criteria, terms, conditions and fees apply. Details are subject to change.

Fees and interest rates are subject to change. Non-standard fees may apply. Please use the following links for full details of our Terms and Conditions, Fees and Charges (PDF 166KB), Rates, fees and agreements, ANZ EFTPOS Card and ANZ Visa Debit Card Conditions of Use (PDF 103KB), and ANZ Electronic Banking Conditions (PDF 138KB).

This material is for information purposes only. We recommend seeking financial advice about your situation and goals before getting a financial product. To talk to one of our team at ANZ, please call 0800 269 296. For more information about ANZ’s financial advice service or to view our financial advice provider disclosure statement, see anz.co.nz/fapdisclosure.