The current account overdraft facility makes life easier in many ways. The majority of citizens use it almost carefree. With the overdraft facility, the wishes of everyday life are easily fulfilled. Financing with the overdraft facility is not cheap, however. It is one of the most important reasons that the loan is necessary for the account balance. If you balance your overdraft facility with an installment loan, you can often more than halve the interest burden.
The credit for the account balance – the declaration of war on the interest
The first overdraft of the checking account is usually harmless. At the end of the month, shopping is done correctly again, the supermarket does not pay in cash but with the EC card. A short time later, with the receipt of salary, the account is back in the black. The first interest calculation looks just as harmless. The one-time overdraft cost only a few cents. In return, it was convenient, the account holder did not have to limit himself for the compensation.
For many people, this creates an ominous spiral. The card is now used more often. The way to the ATM is inconvenient and is saved. Anyone who neither oozes self-discipline nor constantly checks the account balance quickly loses the overview. Studies show that whoever pays with the card often spends more money. The account ends up in the red very quickly. It is the lack of reference to “plastic money” that has this effect. The high overdraft interest rates result in an additional minus on the account.
Back in the black – just how?
Many people only become aware of the critical situation very late. The account is often already in the area of the overdraft limit. It is not uncommon for the clerk to alert the account holder. For most people, the decision is made to finally balance the current account. The overdraft facility is to be slowly dismantled. A credit for account settlement is out of the question. The project should succeed with iron self-discipline.
Instead of shopping with the card, cash is picked up again. Significant progress can be seen in the first two months. Anyone who thinks they are on the right track has done the calculation without the overdraft interest. The third month’s interest settlement is sobering. The overdraft facility has eaten up the savings efforts again. Only the credit can bring real help to the account settlement.
The installment loan does not have to come from the house bank
Anyone who has ever fallen into the interest rate trap of the dispos should not repeat this mistake. Overdraft facility compensation with an installment loan is the right decision. The cost comparison should decide which loan provider gets the contract. The best way to compare many different loan offers is on the Internet.
Online loans are often significantly cheaper than the offers of the house banks. More and more people are opting for an online loan for credit to balance their accounts. After all, they have already paid interest enough for the overdraft facility.