repaying overdraft with a loan

[filthiestfis]

I have just received a loan from my bank to cover my overdraft facility with them which was attracting a huge amount of interest, however, Im unsure of what I should do with the overdraft. Should I ring them up and cancel it completely or go reducing the level of overdraft month by month as I am repaying my loan back?

[EverClean]

I'd suggest to cancel all but perhaps a small emergency amount. Otherwise you'll be back in the same situation again.

[purplelily]

If a bank has loaned you money to pay off an overdraft, they'll usually cancel that overdraft automatically (although your account may have an overdraft 'cushion' of say, �100).
They probably won't allow you a further overdraft with them until the loan is paid off either.

I'd speak to the bank to see whether this is what they've done.

pl