Currently, the biggest cases of debt with banks is due to overdraft. As it has the highest interest rates on the market, non-payment of installments can cause a rapid increase in the value of the debt, becoming increasingly difficult to repay.
Therefore, having debts with banks is always a huge headache. Ideally, always have control of all your expenses so as not to owe any institution, whether bank or financial.
What is overdraft?
Overdraft is a type of pre-approved personal credit, meaning you don’t have to make a request to access the money – it is already there, “available”, in your account.
Therefore, when looking at your balance, you need attention. They often show you the full amount with your pre-approved overdraft credit and the actual amount you have on your account in a smaller size.
This is one way to make you think you have money and use the overdraft. However, care must be taken. Like all loans, overdrafts carry interest and they can be well-repaid.
How does overdraft debt work?
When you have overdraft debt, it will generate a percentage of interest for the time you owe the money. And for the overdraft, the rate is quite high.
Any debt can mean the loss of your assets. And with the overdraft debt that would be no different. However, you don’t have to be scared and rushed to get what you owe.
For, what banks can do in case of unpaid debts is to file a court appeal requesting payment of the same. This process can take years and, only after a case won by the bank, can the court determine the attachment of the debtor’s assets. Pay close attention after the court decision only.
This will give you time to pay off or renegotiate the debt.
Anyway, did you remember that friend who needs this information? Then share on your social networks and tag that person.