Everyone tries to keep records of their ownmeans. He succeeds in this or not, depending on worldly wisdom, ability to foresee developments and financial intuition. At the same time, it is difficult to find a person who would not have to borrow money. The need to find a source of funds among friends and relatives, as well as the need for explanations, disappears if you have an overdraft. What it is? Is it different from a loan? Knowledge of the answer to these questions will increase financial self-confidence and economic literacy. This will do.
It sounds so similar to the German word.“Overdraft” is in fact a copy from English, which means it is a “short-term loan”. It is provided to the most reliable clients of the bank in the amount of a previously agreed amount.
This leads to legitimate questions under the conditionif you agree to take overdraft. What kind of loan is this? What are its conditions? Is it profitable? How does a credit overdraft differ from a credit card?
In the banking sense, overdraft is not even a loan. This is an opportunity for the cardholder to borrow some cash from the bank due to the limits of the limit until the next salary is calculated.
Unused overdraft alwayslocated on the holder's credit card. Of course, borrowing is not free. The debt is reddening, and with a certain percentage of the contract. Usually it is much higher than that of loans familiar to our understanding.
Another difference is that debt is paid off.a single (together with interest) amount at the time the next salary funds are received on the card. Whereas credit card debt is usually broken down into a series of equal interest-free payments in a specified time period.
Чаще всего размер овердрафта дебетовой карточки depends on the size of the average monthly enrollment and usually does not exceed this individual figure for each owner. Thus, the nearest receipt of funds fully returns the debt to the bank.
Please note that the owner is normal, notcredit card can easily become a borrower inadvertently. For example, if payroll is delayed, and the client, not knowing about it, makes the necessary purchases, paying off the funds provided under the overdraft agreement. That this purchase cost more than expected, the cardholder can find out only a month later.
Calculation of a credit card a priori can not be random for the client.
The most serious disadvantage of overdraft is credit.trap. Very often, a person does not fit into the amount allocated by wages. Having taken overdraft funds once, later it does not have time to pay off the debt on time. This amount of debt goes from month to month, leaving the interest to the bank.
Если вы решите, когда узнаете все про овердрафт, that this bank offer is unprofitable for you, just refuse it. But there are force majeure circumstances when he is very necessary. Just be aware of the "pitfalls" of overdraft and use it wisely.
