Martin Lewis has issued an urgent warning to anybody who is currently in their overdraft, with "hideous" new rates set to hit.
The money-saving expert has warned people have just days to eliminate their bank overdraft as changes to interest rates are set to skyrocket at the end of the week.
Shockingly, overdraft rates could soon be more expensive than credit cards, Martin pointed out.
"Cut your overdraft NOW - it's costlier than credit cards," Martin advised in his weekly MoneySavingExpert newsletter.
"Overdrafts are the new danger debt - double the interest of high street credit cards."
He continued: "The new rates are transparently hideous."
As Martin explains, almost every bank will soon roll out at charge of around 40 per cent - with virtually no competition.
He said: "Nationwide's rate changed in Nov - this week HSBC, First Direct & M&S do it, and the rest will roll out imminently."
In Martin's MoneySavingExpert newsletter, he explains: "The worst hit are those with large, authorised overdrafts of c.£600+, who could see costs double.
"Those who just occasionally dip into overdrafts, or only have small ones, will find this new system cheaper if they are used to having daily fees.
"Those with unauthorised overdrafts (ie, bust your limit) will pay less, as banks can no longer charge more than they do for authorised overdrafts."
Although this won't be possible for everyone, if you're overdrawn you should look to minimise the rate to 0 per cent, reports Manchester Evening News.
For people with smaller overdrafts, Martin flagged up First Direct as a possible option, as it offers people a £250 interest-free overdraft buffer and £100 in cash for moving to them.
Meanwhile, for those with larger overdrafts the money-saving guru has suggested Nationwide's FlexDirect. The bank are currently offering people moving to it a 0% overdraft for a year.
However, the limit depends on your credit score and people should be aware that the rate shoots up to 39.9% though after a year - so it's not a permanent solution.
If these don't work for you, Starling also offer 15% to 35% depending on credit score, while Monzo between 19% and 39% depending on credit score.
And elsewhere, if you shop around there is also the option of 0% money transfer cards, which will charge a small fee (normally less than 5%) to borrow money for a fixed time.
This cash can then be used to clear your overdraft - but you'll need to clear the balance on the cards before the 0% period ends or be hit with interest charges.
You can find all of Martin's top tips to minimise your overdraft in the weekly MoneySavingExpert newsletter.
