Balance overdraft credit with loan

Balance overdraft credit with loan

Whoever has a checking account usually has a overdraft facility. A small tag on the checking account, which gives you the opportunity to spend more money than is actually in the account. And that without taking out an installment loan. This is because the overdraft facility is assigned when the current account is opened and is always available as a call credit.

However, what many consumers like to forget is the fact that using the overdraft facility costs a lot of money. While the provision is free of charge, you have to pay an effective interest on the amount used if the account is overdrawn and thus the overdraft facility is used, which is on average around 11 percent per month. A lot of money, especially when you consider that a regular installment loan can be taken out with an effective interest rate of 2.7 percent.

Why take out a loan?

Why take out a loan?

If you are unable to balance the overdraft facility within a very short time, you should consider whether you want to use a loan to offset the overdraft facility. A very simple installment loan with a small loan amount, which erases the high effective interest rates and which can be settled quickly with the help of small installments.

Another advantage of balancing overdraft facility with credit would also be seen in the fact that clearing up the overdraft facility provides greater financial scope. If there is a bottleneck again, so that more money has to be taken from the account than is actually available, the overdraft facility can be used again. However, care should be taken that this is not a permanent condition. He would point out poor financial management and ask for a revision of current financial income and expenditure.

How can an overdraft facility be settled through credit balancing?

How can an overdraft facility be settled through credit balancing?

To offset the overdraft facility with the help of a loan, the first step is to determine how much money is required. Not only the disposition should be considered. Other accrued liabilities that have not yet been settled and that may be due in the near future should also play a role in determining the loan amount. Because if a loan has already been taken out, then please do so that any trouble can be kept away. Otherwise you have financial problems again in a very short time, which may then no longer be settled by taking out a loan.

If a loan amount could be determined, the search for a loan begins. We recommend an installment loan because it is not earmarked and can be perfectly adapted to any project. In addition, with an installment loan, the bank does not have to be told what the money from the loan is to be used for.

The easiest way to find it is to use a loan calculator. This can be found here on the Internet and is available free of charge. All that is required is to enter some key data into the loan calculator for calculating the overdraft facility using credit balance. The personal data for the borrowing will only be requested when a loan offer has been selected and direct contact to the lending bank has been established. So there is no need to worry that when dispo credit is offset by credit, confidential private data falls into the wrong hands just because the right loan was found with the help of a loan calculator.

If the credit rating fits and an appealing offer can be found, it will be available within a few days after the application. Some banks even offer particularly fast payouts within 24 hours. Depending on what the borrower wants.