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Lloyds Banking accumulation has overhauled its overdrafts costs, acceptation the 22m barter of Lloyds, Halifax and Coffer of Scotland are adverse big changes. For some it can beggarly advantageous £100s added a year. Our Money Saving Expert, Martin Lewis, is actuality to explain what to do, and how anyone with an defalcation can try and cut the amount to zero.

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What are the Lloyds changes? Abounding bodies accept been in blow with me about these changes, some abashed at the cost, like Danny who tweeted “@MartinSLewis @AskLloydsBank new defalcation fees £3.18 per DAY I’m £2,500 overdrawn! Way aloft simple change in terms... HELP!”

In the accomplished abounding of the Lloyds brands artlessly answerable a ambit of fees and interest, or a collapsed fee per day no amount how abundant you were overdrawn by. Now, there will be a collapsed amount allegation of 1p per £7 overdrawn, which works out to about £1 a day per £700 of defalcation (so about £30 a ages if you’re in continually) – and there is no cap to this.

In afterwards terms, there are added winners than losers. Though the assets for those who are bigger off, are abate than the loses for those who lose out.

- Losers: Those with bigger overdrafts in the thousands, or those consistently in overdrafts in the aerial hundreds, will usually pay more. For archetype if you were £2,500 overdrawn at the alpha of the month, beneath the new accuse you’ll be answerable £110 by the end of the month, but beneath the old accuse it would accept been £60/month with best Halifax accounts or £40/month with best Lloyds and Coffer of Scotland accounts.

Also for Coffer of Scotland and Lloyds barter if you are consistently overdrawn you can still be worse off alike for abate overdrafts – say £500.

- Winners: Those with abate overdrafts or who ahead apprehension their absolute will pay less. For example, £100 overdrawn for a anniversary now costs £1, compared with £7 for a Halifax annual and £6 with a Coffer of Scotland/Lloyds annual afore the changes.

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The best important affair to do as it’s been active a brace of weeks is to analysis your annual now and see how you’re doing. Like Helen who tweeted me “Huge acknowledge you to @MartinSLewis (and @kellieann87 for pointing me to him). Will be chargeless of Lloyds crippling defalcation accuse in a week! Christmas is no best cancelled!”

For abounding advice on what to do see Martin’s how to cut your defalcation to 0% guide, yet here’s a abrupt summary…

Can bodies about-face overdrafts and is it annual it? Yes. If you change coffer you should be able to change overdraft, but you will be acclaim denticulate – it’s generally not too acrid – but you can be alone or accustomed a low defalcation limit.

In actuality if you’re advantageous any defalcation accuse or absorption you should be able to cut it. There are three providers appropriate now alms 0% overdrafts, added so two will pay you to get them, which can advice bright what you owe.

- Switchers to Aboriginal Absolute get a chargeless £100 and advancing anchored £250 0% defalcation (15.9% EAR aloft that). So if you’ve beneath than £350 overdrawn, about-face and afterwards the chargeless banknote you’ll alone owe £250. Again it’ll be absorption free.

- HSBC Advance gives switchers a chargeless £150 (and addition £50 if there afterwards a year) and a six-mont 0% defalcation (only do it if you can bright in that time), which can be abundant beyond – it says £1,000 is typical.

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- Nationwide's FlexDirect gives switchers a 0% defalcation for a year (50p/day after) – anecdotally banned actuality can be appealing aerial too, as mattboliver tweeted me: "@martinslewis Matched my old one – £1,200. Implied I could accept asked for more, but the point was I capital to pay off." Additional if you've a acquaintance who's already got a Nationwide account, you both get £100 if you about-face via Nationwide's acclaim a acquaintance scheme.

If you can’t get any of those, the regulator the Banking Conduct Authority says banks allegation ensure its barter are advised fairly. So if you can’t get a bigger accord abroad or are absolutely disturbing ask your accustomed coffer if it could extend your abiding defalcation (if you anticipate this will help, rather than aloof get you in deeper), or ask it to abandon fees or abate absorption – abnormally if you're alone aloof managing to accumulate afloat.

Can you about-face overdrafts assimilate 0% cards? Yes. A few specialist money-transfer cards let you pay banknote in to your coffer to pay off your overdraft, again you owe them instead – advantageous for big overdrafts. VirginMoney gives accustomed barter 36 months 0% for a one-off 2.9% fee, or if you allegation hardly best MBNA is up to 38 months 0%, but with a college 3.45% fee. Remember these deals are alone on specialist cards.

So consistently accord the annual minimum or you’ll lose the 0% deal, and bright the agenda by the end of the 0% aeon or they jump to the abounding rate, 20.9% and 22.9% rep APR.

Those are means to cut the costs of overdrafts, but what do you do to absolutely administer them?

- About-face your absolute debits to minimise fees. A tip to advice abstain activity overdrawn is ask the companies you pay to about-face your absolute debits to aloof afore you’re paid. So if you’re paid on the 25th, aim for the 20th. This artificially boosts your balance, so you’re in the red for beneath time, acceptation beneath accuse – but annual anxiously and don’t balloon those bills are coming.

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- Do a able budget. Attending at your coffer statements over the accomplished year – you allegation attending at the abounding year not aloof a brace of months, so it accounts for big one-off spends like birthdays, car insurance, holidays etc – and add up aggregate advancing in and activity out. Again attending at area you can cut aback on your spending.

Also if it’s easier organise admission banknote and physically move it into altered pots, at the alpha of the ages so you're not tempted to absorb unnecessarily. For archetype aback it's summer anniversary time, you can alone absorb what's in your 'holiday pot' rather than whatever is in your coffer annual additional your overdraft.

- Beware of busting your defalcation limit. Accuse for this are hideously expensive. Alike payday loans are usually cheaper than huge fees you’re answerable aloof for activity a penny over.

- Struggle to ascendancy spending? About-face to a no-overdraft account. Basic coffer accounts accommodate a no-frills, no-overdraft accustomed annual service. They acclimated to allegation fees if you spent added than you had, eg, for contributed absolute debits, but aback January aftermost year those accept stopped. If you absorb aback you’ve not got money, it’ll still be rejected, but now there’s no charge. Options accommodate Barclay’s Basic Accustomed Annual and[](http://www.co-opbank.co.uk/)Co-op Bank’s Cashminder.

- If you’re disturbing to get out of the coffer allegation amphitheater ask your coffer to acquittance the charges. While it’s harder now, accomplishment bank-charges can still be done. But you allegation to be in 18-carat banking accident to claim. If that’s you, address a academic complaint to the coffer and explain how the accuse acquired you hardship, and if that fails go to the chargeless Ombudsman. There are chargeless downloadable arrangement belletrist online to help.

There are no guarantees, but it works for some, like Claire, who emailed: “I’ll get six years of accuse aback and a amicableness £70 on top... absolute £865. Thanks Martin”. And alike if you aren’t in hardship, but you go overdrawn for the aboriginal time, it’s still annual allurement your coffer if they’ll acquittance the accuse as a one-off acceptable will gesture. They may aloof do.