From 1 to 9, each number takes up 1 digit.
From 10 to 99, each number takes up 2 digits. There are 90 two-digit numbers, so this makes 180 digits overall.
From 100 to 999, each number takes up 3 digits. There are 900 three-digit numbers, so this makes 2700 digits overall.
So far, we are on our 2889th digit. We now have to proceed more carefully.
From 1000 onwards, each number has 4 digits.
3007 - 4n = 2889, where n is the number of numbers we use after 1000.
n = 29.5, so we are on 1029. The second digit of 1029 is 0.