Can Overdraft Debt Be Included in Debt Review?
Overdraft debt may be included in debt review depending on the nature of the agreement and the credit provider. Overdrafts are a form of credit facility, and where they qualify as credit agreements under the National Credit Act, your debt counsellor can restructure the repayment. The treatment varies by provider, so discuss your specific overdraft with your counsellor.
Key Points
- Overdrafts may be included where they qualify as credit agreements.
- Treatment varies by credit provider.
- You generally cannot continue using the overdraft under review.
- Provide overdraft statements to your debt counsellor.
How overdrafts are treated
An overdraft is a revolving credit facility linked to a current account. Where it is a credit agreement under the NCA, it can be included in debt review and restructured like other unsecured credit.
Your debt counsellor will review the overdraft agreement and confirm whether it can be incorporated into the plan.
Can you keep using the overdraft?
Generally no. Once included in debt review, the overdraft facility is typically frozen so that the balance can be repaid under the restructured plan rather than drawn on further.
This prevents the debt from increasing while you are trying to reduce it.
What to provide
Give your debt counsellor recent statements showing the overdraft balance, the limit and the interest rate. This information is needed to prepare an accurate restructuring proposal.
If the overdraft is linked to a salary account, discuss with your counsellor how payments will be managed.
Frequently Asked Questions
Worried That Your Debt Has Become Unaffordable?
Debt Guidance can assess your income, essential expenses and debt commitments to determine whether debt review may be appropriate.
Reviewed by Carolina Guevara Harris
Registered Debt Counsellor · NCRDC3152
Last updated: 17 September 2025
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