The overdraft can save us from stifling situations, but it’s hardly ever the best alternative to get out of the grip: being overdrawn can be a big headache.
The fact is that this “extra money” has one of the highest interest rates on the market, and for an emergency we can get into debt with bitter consequences!
Want to understand how the overdraft works and if they can take your goods?
Let’s explain below, keep reading.
First of all, we need to understand what is overdraft:
Credit that is already “available” in your bank account, in that sense, is a pre-approved personal credit in which you do not need to make a request to have it.
Prior to the new overdraft rules , banks emphasized pre-approved credit on the ATM screen, and their actual balance available in a reduced size.
This made the customer mistakenly deduce that he or she has money in account, and automatically overdraw it when starting to use the credit.
I entered the overdraft and am owed, can you take my goods?
Upon entering the overdraft a percentage of interest will be charged as long as the debt is not repaid. And, as stated above, this mode has one of the highest interest rates on the market.
And yes, you can lose your assets, incidentally, this can occur with any debt.
But first of all, no despair! In the case of overdraft, the loss of assets can be a very complex process.
Because it does not fit into a secured loan , the debtor may go through a legal process first, and will have a deadline to repay or renegotiate the debt.
I want to pay off my debt on the overdraft, how do I do it?
Not only on the overdraft, but in all debt financial planning becomes necessary.
In the Financial Group blog we have some special articles that can instruct you to organize your budget.
Once you’ve done that, you’ll finally have money on hand to get out of debt!
In any case, be sure to try to negotiate the debt with your bank and ask for more affordable interest offers.
And of course, why not make a simulation with Financial Group ?
Ask for your personal loan online and get out of the red. We guarantee safety and ease.
Financial Group , you far from red.