You generally don’t get a fixed “pay‑back‑by” date for an arranged overdraft, but you can’t sit in it forever without consequences.

Quick Scoop

Short answer:

  • An arranged overdraft (one your bank has formally approved) usually has no set repayment schedule like a loan. Your deposits automatically reduce it, and you can stay overdrawn as long as the bank keeps the facility open.
  • However, interest is often charged daily , and the bank can change, reduce or cancel your overdraft limit, which can force you to repay it more quickly.
  • Unarranged or unauthorised overdrafts (spending beyond your agreed limit) are different: banks can demand these are repaid immediately and may block payments and add fees.

If you’re asking “how long do I have?” the real answer depends on:

  • Whether your overdraft is arranged or unarranged
  • Your account type (regular, student, graduate, business, etc.)
  • The terms in your bank’s account agreement

How overdraft repayment actually works

Think of an overdraft as a flexible credit line built into your current account, not a traditional loan.

  • Every time money is paid into your account (salary, benefits, transfers), it automatically pays down your overdraft first.
  • There is usually no required monthly repayment beyond any minimum conditions your bank sets (for example, paying in a certain amount each month).
  • Interest on many overdrafts is charged as a percentage of the amount you’re overdrawn, calculated daily and charged monthly.

Example:
If you’re £500 into your overdraft at 30% interest, interest is calculated daily on that £500 and added monthly, so staying overdrawn for months becomes expensive quickly.

So… how long do you “have” to pay it back?

1. Arranged overdraft (approved by your bank)

For a standard arranged overdraft:

  • There is usually no fixed end date in the contract, so technically you can be overdrawn for months or even years.
  • But the bank can review the facility at any time and:
    • Reduce your limit
    • Remove the overdraft
    • Change the interest rate or fees
  • If they do this and you can’t bring the balance back within what they allow, they can treat the remaining amount like any other debt in arrears (letters, collections, impact on your credit, etc.).

In practice, that means:

  • You don’t have a guaranteed “you must clear this within X months,”
  • But you also don’t have a guarantee you can sit at, say, –£1,000 for years without your bank acting.

2. Student and graduate overdrafts

These often work on a timeline , even though it’s not a classic repayment schedule:

  • Many student accounts offer a 0% overdraft while you study and then switch you to a graduate account after you finish.
  • On some graduate accounts, the interest‑free limit reduces each year (for example: £2,000 final year student, £1,500 in year 1 after graduation, £1,000 in year 2, £500 in year 3).
  • You’re effectively given several years to naturally repay the overdraft as they reduce the limit; if you don’t, any amount above the new limit can be charged interest or treated as unauthorised.

So with student/graduate overdrafts you might have, for instance, 3–5 years from starting uni through graduation to get back to zero, but this is account‑specific.

3. Unarranged / unauthorised overdraft

If you go beyond your arranged limit or into the red without any agreed overdraft:

  • The bank can treat this as breach of terms.
  • They may charge higher fees and interest and can demand that the overdrawn amount is repaid straight away.
  • If you don’t clear it, they can:
    • Cancel your card
    • Block payments or direct debits
    • Pass the debt to a collections department or external debt collector
    • Mark your file, which can affect future borrowing

Here, “how long do you have?” is often “until the bank decides they’ve had enough ,” which might be a matter of weeks or a few months , not years.

What happens if you don’t pay it back?

If you stay in overdraft for a long time or stop using the account positively:

  • Mounting interest and fees: The longer you’re overdrawn, the more interest you pay, especially at rates that can run 15%–40% or more.
  • Account reviews: Your bank can reduce your limit or withdraw the overdraft entirely, effectively forcing repayment.
  • Credit impact: Persistent or unmanageable overdraft use can hurt your credit status and make other borrowing more expensive or harder to get.
  • Debt collection: If you ignore letters or don’t come to an arrangement, the bank can default the account and send it to collections.

Practical tips if you’re worried about timing

If you’re currently overdrawn and wondering how long you have:

  1. Check your account terms
    • Log in to your banking app or look at your account documents.
    • Search for: “overdraft,” “interest‑free period,” “graduate account,” “review,” or “unauthorised overdraft.”
  1. Work out if it’s arranged or unarranged
    • Arranged: You can see a clear overdraft limit (for example, “Overdraft limit £1,000”).
    • Unarranged: You’re beyond that limit or your account never showed an overdraft facility.
  1. Talk to your bank early
    • If you know you can’t clear it quickly, ask if they can:
      • Freeze or reduce interest
      • Set up a repayment plan
      • Switch you to a different product (like a low‑rate loan) to spread repayment over fixed monthly instalments
  1. Consider ways to clear it faster
    • Create a small budget and direct a set amount each month to bring the overdraft down.
    • Use savings if your overdraft rate is higher than what your savings earn.
 * In some cases, a **cheaper personal loan** or balance‑transfer style product can reduce the cost of the overdraft, but only if you’re confident you can meet the repayments.

Simple rule of thumb

  • If your overdraft is arranged and interest‑bearing : there’s usually no hard deadline, but you should treat it as short‑term, aim to clear it within months, not years , and be prepared for the bank to review it at any time.
  • If it’s student/graduate : check your bank’s specific timeline; you may effectively have several years, but your limit will likely shrink each year after graduation.
  • If it’s unarranged : the bank can expect you to pay it back immediately or very quickly and may escalate matters if you don’t.

If you want more tailored guidance

If you tell me:

  • Which country you’re in
  • Whether it’s a normal, student, or business account
  • Roughly how much you’re overdrawn

I can outline what a realistic repayment timeframe might look like for your situation (purely as general information, not formal financial advice).

Information gathered from public forums or data available on the internet and portrayed here.