An overdraft occurs when you spend more money than is in your bank account. This can happen for a variety of reasons, but it typically happens because the person didn’t maintain their banking habits or they weren’t aware that they had reached their maximum balance. The biggest problem with an overdraft is that banks charge fees and interest on the amount you owe them.

euro, coins, currency @ Pixabay

If left unpaid, this debt could be huge by the time it’s paid off! In this article we will discuss what overdrafts are, how to avoid them and how to get out of one if you’re already in one!

What are overdrafts?

An overdraft occurs when you spend more money than is in your bank account. This can happen for a variety of reasons, but it typically happens because the person didn’t maintain their banking habits or they weren’t aware that they had reached their maximum balance. The biggest problem with an overdraft is that banks charge fees and interest on the amount you owe them. If left unpaid, this debt could be huge by the time it’s paid off! -How to avoid an over draft: There are some steps people should take before opening up a checking account to try and avoid getting into one themselves – research which accounts have lower monthly charges (most will require debit card usage).

Leave A Reply

Please enter your comment!
Please enter your name here