Overdraft - it: money debt or loan?

Everyone is trying to keep a record of its own funds.Successfully he obtained it or not, it depends on the conventional wisdom, the ability to anticipate events and financial intuitions.At the same time it is difficult to find someone who would not have to borrow money.The need to find a source of funds among friends and relatives, as well as the need explanation, no longer, if you have an overdraft.What it is?Is it different from a loan?Knowing the answer to these questions will increase the confidence of the financial and economic literacy.These are going to do.

It sounds so much like the German word "overdraft" in fact - tracing from the English, and it means "a short-term loan."He provided the most reliable clients of the Bank in the amount of pre-agreed amount.

This raises legitimate questions provided that you agree to take an overdraft.What kind of a loan?What are the conditions?Whether it is profitable?The overdraft loan is different from a credit card?

in bank overdraft understanding - it's not even a loan.This is an opportunity to take the cardholder, the bank borrowed some cash, within the limit due to accrual next paycheck.

unused amount of the overdraft is always on the credit card holder.Of course, borrowing nebesplatno.Good turn deserves another, and with a certain percentage of the contract.Usually, it is much higher than usual for our understanding of the credit.

Another difference - debt repayment is made uniform (together with interest) amount at the time of receipt of funds on the card the next salary.While credit card debt is usually broken down into a series of equal interest-free payments in the stipulated time period.

The most common size of the overdraft debit card depends on the size of the average monthly enrollment and usually does not exceed the individual number for each owner.Thus, the flow of funds coming fully back bank debt.

Please note that the owner of the ordinary, no credit cards can easily become the borrower accident.For example, if the payroll is delayed, and the client does not know about it, make the necessary purchases, paying funds provided under the contract for the overdraft.What is the acquisition cost more than expected, the owner of the card can be found only after a month.

calculation of the credit priori can not be for the client randomly.

The most serious drawback of the overdraft - credit trap.Very often people do not fit into the amount allotted wages.Pocherpnuv overdraft facilities once, then do not have time to pay off the debt on time.This amount of debt transferred from month to month, leaving the Bank put interest.

If you decide when you learn all about the overdraft, that the proposal of the bank is unprofitable to you, just give up on him.But there are force majeure, when it is very necessary.Just be aware of the "pitfalls" overdraft and use it wisely.