A bank overdraft (מינוס) is one of the most expensive loans there is, and it also hurts your ability to get a mortgage. The bank sees a permanent overdraft as a sign of instability.
Why is an overdraft so expensive?
The rate on exceeding the account's credit line is much higher than the rate on a mortgage or a regular loan. And because the overdraft is "permanent," you pay interest on it every month without the debt getting any smaller.
A 5-step plan
1. Mapping
Write down all income and expenses for the last 3 months. Building a family budget
2. Stopping the bleeding
Cancel unnecessary standing orders, switch to paying by debit card or cash, and stop new installment purchases.
3. Replacing the overdraft with a loan
A short-term loan, at a lower rate than the overdraft, that closes it. The account returns to zero, and the loan is repaid at a fixed pace.
4. Closing the credit line
Once the account is back at zero, reduce the credit line so you do not fall into it again.
5. A safety cushion
Start saving a small amount every month for emergencies. Saving for equity
More: loan consolidation.