Overdraft is one of the types of short-term lending. The tool is designed to solve short-term financial problems caused by late receipt of funds to the account. See how to choose the appropriate type of overdraft and use it profitably.

What is overdraft in simple words

An overdraft is a transfer in excess of a loan, an overspending (from the English overdraft). Simply put, this is a debit of more money than is currently available in the account. Typically, this situation occurs when there are cash gaps - for entrepreneurs, or when individuals use a card linked to an account, when the account transaction exceeds the balance cash on it.

Difference from loan

An overdraft differs from a loan in the following ways:

• its size usually does not exceed the amount of receipts to the account for one or two months;
• the accrued interest when providing this service significantly exceeds credit interest and can reach tens of percent per annum;
• accrued interest and penalties are written off last (see also).

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How to avoid mistakes when using overdraft

The overdraft amount is usually small compared to the turnover on the company's current account, and its non-repayment is usually a consequence of the bankruptcy of the enterprise or fraud. Therefore, from the point of view of banks, this is a loan product with a reduced level of risk and the conditions for it are softer.

Late payments can ruin a company's credit history. As a result, you may be denied a large loan that took six months to prepare due to a delay of 1,000 rubles. Therefore, before signing an agreement, you should carefully analyze its terms and possible risks.

The main mistake when using an overdraft is trying to use it to solve the regular problem of lack of funds. working capital. With intensive use of this credit product There may be a feeling that the overdraft significantly affects the company's turnover, although this is not the case.

Also, one of the most common mistakes is the desire to get the highest possible overdraft limit. It feels like it's very easy to access a significant amount. However, we must not forget that the period for returning this money is quite short. If the receipts to the company account are uniform, with an overdraft limit of 25 percent of average monthly turnover, it takes 5.5 to fully repay the selected limit banking days. With a limit of 50 percent, it will take 11 days. It is important to make all payments in advance to avoid delays.

It is advisable to separately formulate the rules for using overdraft in credit policy enterprises.

As a rule, the more evenly the company's receipts into the account are distributed over the days and the more frequent they are, the lower the required overdraft limit, which allows you to solve short-term problems.

Overdraft for individuals

Formally, a bank overdraft is possible on any card - both credit and debit. But usually it is provided for a debit card. This is a connected service, the so-called permitted overdraft. The bank provides a certain limit of money to its client in debt for short term, which makes it possible to make the necessary purchase or make a payment if there are not enough funds in the account. Usually the limit does not exceed the amount of income on the card for one or two months.

Microoverdraft

Due to the fact that the amount is relatively small compared to legal entities, some banks call it microoverdraft. It works as follows. Let's say there is an overdraft on the account payment card amounted to 10 thousand rubles. Three days later, funds in the amount of 50 thousand rubles were credited to the account. The bank immediately writes off 10 thousand and closes the debt, then, according to established formulas, calculates the interest for the use of funds and also writes it off.

Technical overdraft

In addition to what is permitted, it is also possible that there is no permission or technical overdraft. That is, the service is not formally provided, but circumstances may arise when more funds are debited from the account than is in it and the account goes into the red. Banks have different views on this. Interest is charged on the amount of overspending, and possibly even a significant fine. It is noteworthy that Civil code in this case, stands on the side of the bank; this is the subject of article No. 1107.

Why is overdraft dangerous?

When applying for a card at any bank, you should separately clarify the issue of overdraft. The fact is that some banks may include it in the list of available services, but do not notify the cardholder about it. If the card holder actively uses it - shopping in stores, online shopping, processing money returns, then he is not able to constantly add and subtract incoming and debited amounts. Therefore, there may be unnoticed overspending that will go unnoticed by the cardholder.

How to avoid overdraft

To avoid bank overdraft, it makes sense to use credit cards with an interest-free period, subject to repayment within a short period of time. Typically banks set a period of one to two months, but options are possible. In addition, you should constantly monitor the balance of funds on the card and not approach a zero balance. It is worth replenishing your card account when it drops to a certain level, keeping the so-called “minimum balance”.

Information about what an overdraft is can be useful in case of an urgent need to receive funds. At some moments, on the contrary, this function creates some interference. If there is no need for additional foreign currency resources, the holder of a salary card must constantly maintain a certain limit on it. When agreeing to such a program, you need to study the contract in detail so as not to overpay extra interest.

What is an overdraft at a bank?

The bank's overdraft service, often offered to individuals and legal entities, is a lending program with special individual conditions. Its features are as follows:

• transfer of funds to the client’s current account;
• the debt amount is written off regardless of the cash balance;
• the interest rate on the overdraft is regulated by the bank - it may be absent, accrued only in case of late payment, or vary depending on the balance;
• overdraft, as a rule, provides small amounts for minimum term- for a period of temporary financial difficulties.

What is card overdraft?

Cards with overdraft have become widespread. In most cases, they are assigned to the client’s current account, into which he receives his salary, or to a deposit account. How an overdraft works - the bank transfers to the client’s account the amount specified in the contract, which will be at his disposal for a certain period.

At the end of this period, the client is obliged to repay the spent funds and interest, depending on the terms of the agreement. If the client does not require additional funds, he may not spend them, maintaining the overdraft limit, or refuse such a service. At the same time, you need to remember how much you need to leave on the card - this is one of the disadvantages of such a banking product.

What is an authorized overdraft?

Typically, the available overdraft is calculated based on the income coming into the customer's checking account. Sometimes such a service can be automatically included in the client’s salary project. A certificate from work can serve as confirmed income. To apply for an overdraft, additional information may be required:

• availability of permanent registration;
• confirmation of work experience;
• no debt on other loans.

Overdraft limit - what is it?

In all cases, the provision of an overdraft is accompanied by a limitation on the limit of funds used. The limit is the amount that can be used by the client for personal purposes and must be returned within a certain period. In most cases, it is calculated as a certain percentage of the amount of money for current account and their turnover. Additional condition Using an available overdraft, the limit may be reduced when withdrawing money and increased when replenishing the account.

How is an overdraft different from a loan?

Regardless of one function - issuing funds for the use of clients and their subsequent return with or without interest, there is still a difference between an overdraft and a loan. The following distinctive features can be distinguished:

1. As a rule, a loan provides funds at a fixed interest rate specified in the agreement, and an overdraft - without it in case of timely repayment of money. If the overdraft payment is overdue, then the interest on it can be much higher than the overpayment on the credit line.
2. An overdraft, as a rule, does not require proof of income, but also provides a much smaller amount for use than a loan.
3. The loan amount depends on the client’s solvency, and the overdraft amount depends on wages, coming to a specific account or the amount of cash turnover on it.

Why is overdraft dangerous for individuals?

Having access to a certain amount of money, a person can forget about repaying the debt to the bank. This is called a technical overdraft - debt when paying funds. In most cases, it appears when the available limit under an overdraft agreement is overdrawn. In this situation, in addition to the main overpayment under the contract, interest may be charged for late payment, which is several times more than the amount spent.

There are times when a client accidentally withdraws a larger than usual amount from his account, which includes funds provided by the bank. As a result of such actions, it is possible to get into trouble and pay an extra amount. Sometimes upon release new card an overdraft service is automatically connected to it, and if the client does not know about it, he can overpay a considerable amount in interest. Therefore, it is important to check all services assigned to a bank card. Taking an overdraft and forgetting about the requirement to maintain a limit on the account is a big danger for the client.

How to activate an overdraft?

Having understood the essence of an overdraft, the client decides whether he needs such a program or not. If the answer is positive, you should contact the bank branch to conclude an agreement. The procedure for connecting an overdraft may vary for each bank. In some cases it connects automatically. In a similar way, it is calculated available limit– depending on monthly income and turnover of funds in the account.

In most cases, only an identification document is enough, but the client may require some papers:

• work certificates;
• proof of income;
• account statements.

How to disable overdraft?

If there is no need, the overdraft service can be disabled. To do this, you should contact the bank to terminate the contract. One of the conditions for such action will be the absence of debt under this program. Different financial institutions have different conditions for providing such financial product. They must be specified in the contract. If there is a condition that it is impossible to disable the overdraft, then when signing the agreement, you can specify a zero limit for the provision of funds.

No matter what the client chooses - a loan or an overdraft program, it must be taken into account that both banking products are associated with financial burden. Interest rates for using bank funds and the conditions for their accrual may vary, therefore, no matter how tempting the offer may be, it is important to remember what an overdraft is and what financial risks it may be associated with.

Most of our compatriots have been receiving salaries on bank cards for a long time. Thus, twice a month a certain amount of money is transferred to the card, which is then spent on various purposes. And a logical question arises: what will happen if I spend more on the card than what is on it? What cardholders are asking about is called an overdraft. A card going into negative territory or a negative balance appearing is a fairly common phenomenon, but not everyone knows about it.

What is an overdraft?

Overdraft is banking transaction when the client has spent with bank card an amount greater than he has in his account, receives additional, but already credit funds. Hence the name: overdraft - literally “exceeding the permitted limit”.

But where does the overdraft on a debit card come from, you ask, and you will be wrong. On a debit card, also known as a payroll card, an overdraft may occur, of two types - permitted and unauthorized, the so-called technical, which is why debit card can really go negative.

Permitted overdraft

The bank offers such an overdraft for participants in salary projects: employees of the enterprise receive a debit card on which there is already a certain amount of money - usually from 30 to 50% of the monthly salary. This bank money makes the card a cross between a credit and debit card. Once the cardholder has fully spent his funds, he can use the overdraft. Only in this case will the bank withhold interest on the use of funds, which is comparable to interest on a credit card. However, since the overdraft amounts are small and the terms of use are no more than two weeks (until the next salary receipt), then we're talking about at most, about a couple of tens of rubles.

Unauthorized or Technical overdraft

But this beast is more terrible. If the holder of a card with an allowed overdraft, as a rule, knows about its connection, then the holder of a regular debit card does not know what is happening to his account.

Technical overdraft is a situation when the balance of a debit card account goes into minus. The “minus” is very conditional, since the bank does not provide any overdraft. Compare with an allowed overdraft: you have a card with a balance of, for example, 10 thousand rubles - this is a zero overdraft balance. With an unauthorized overdraft, the “zero” card balance is 0.00. In what situations is this possible:

1. You withdraw cash from an ATM of another bank, while “raking out” the card “to zero”. However, it should be remembered that most banks that own ATMs charge a commission of 3 to 5% for such an operation. Accordingly, the amount of the commission if you withdraw everything that is from the card will go into a technical overdraft.
2. You make a purchase in a foreign online store. The bank can process the application immediately, but, as a rule, they are put in a queue and processed after a few hours at the exchange rate in force at the bank at the time the transaction is processed. And the exchange rate may change upward. And again, if the money on the card was “back to back”, the unaccounted difference in exchange rates could turn into a technical overdraft on the card.
3. You have activated the SMS notification service for card transactions or other automatic payment. You forgot about its existence or just thought that new funds would arrive by now and left the card at 0 or so again. The service worked, but the required amount of money was not available - the debit card went into negative territory, or rather, into a technical overdraft.

In fact, there is nothing wrong with a technical overdraft. You top up the card and the balance is returned, but taking into account the amounts that were previously reserved. That is, if your card went into a technical overdraft of 1,000 rubles, and you topped up your account with 5,000 rubles, the card balance will be 4,000 rubles.

The problem is that the vast majority of bank card holders know nothing about technical overdraft, do not check the balance of their card, and then face interest that the bank withholds on completely legal grounds. These fees are comparable to those paid by cardholders with an authorized overdraft. However, if the latter replenish the card twice a month, then cardholders without an overdraft may not replenish their account for months, or even years. As a result, the amount of the bank's claims may accumulate significantly.

And the worst thing is: yes, a long technical overdraft may well become an episode in your credit history, which in the future will lead to banks’ communication with you being more cautious and less friendly.

How to avoid technical overdraft?

• If you use your card relatively actively, do not allow zero balance. As a rule, an amount in the range of 500-1000 rubles is more than enough to cover possible costs.
• check your card balance at least once a week: in the Internet bank, using the SMS service, through an ATM or by calling your bank’s call center
• disable all unnecessary services on the card, especially if they are paid.

January 2019

Bank employees very often offer clients to connect additional banking services. One of these popular services is overdraft. Many people are scared by this incomprehensible term, because not everyone understands what an overdraft is and how it works.

After reading this article, bank card owners will no longer have any questions on this topic.

What does the word overdraft mean?

Overdraft translated from English language(overdraft) means overspending or beyond what was planned. If we talk in simple words, then an overdraft allows you to receive credit funds from the bank to the client’s account in case of shortage own money. For example, if a person pays plastic card in a grocery store, and there is not enough money on the card to make a purchase, the bank will lend the client the missing amount of money. After such an operation, the borrower’s bank card balance will change to a negative value.

Many will say that an overdraft is not much different from a regular consumer loan. Nevertheless, there are plenty of differences between these two types of lending. We will compare these services below.

Why is the bank so willing to lend money and what is its benefit? Overdraft is borrowing small amount money for a short period of time, and the bank does not provide the opportunity to use this service to all its clients. Credit organization, which provides overdraft lending, must be sure that the borrowed money will be returned to the borrower’s account in the near future.

The bank will allow salary card holders to use such services without any problems, since the client’s wages are regularly transferred to such a card. When money arrives in the account, the borrowed amount will be immediately debited from bank card V mandatory. The service is also available for legal entities - the financial organization willingly gives money to legal entities. a person whose bank account regularly receives funds.

Types of overdraft

Overdraft is divided into two main types:

1. Allowed
2. Unauthorized

An authorized loan is one that operates within the limits loan agreement, that is, all limits and amounts of money are approved by the bank and specified in the current agreement.

An unauthorized overdraft occurs when the limits approved by the bank are exceeded. In simple terms, an unauthorized overdraft can arise when the borrower spends more loan funds than specified in the agreement. If an unauthorized overdraft occurs, the borrower must immediately repay the debt, otherwise the lender may impose sanctions against the debtor.

Exceeding the permitted limits can occur for several reasons:

• if payment is made in foreign currency;
• in case of failures in the bank's operation;
• due to the peculiarities of some payment systems(when the amount can be written off several times, or the payment freezes, and the client makes the next purchase, seeing that there are funds left on the card).

What is the difference between an overdraft and a consumer loan?

If you compare overdraft and consumer credit, you can find a lot of significant differences between these banking products. These services also have similar properties - they borrow money from a lender at interest. As for the differences, these are the terms, loan size, interest rate, repayment of funds, speed of loan issuance.

Let's look at each point in more detail:

1. Deadlines. The time period for which the loan is issued is perhaps one of the most important differences between these lending methods. A consumer loan can be provided by a bank for long term. An overdraft is issued to the borrower for a short period of time. In most cases, an overdraft loan must be repaid in 1-2 months.
2. Loan size. There is a direct relationship between the terms of the loan and the loan amount. If the loan is issued for a long period, then the loan size can be relatively large. Sum consumer loan can be many times more than the borrower's salary. The repayment period for such a loan extends over a long period. An overdraft is issued to a borrower with a loan amount not exceeding two of his monthly salaries.
3. Interest rate. The consumer loan rate also differs significantly from the overdraft loan rate. A consumer loan is issued with lower interest rates than an overdraft. Overdraft rates are higher, but the overpayment is ultimately less than for a long-term loan. If the loan term is shorter, then the overpayment on the loan will be small, despite the fact that the rate is significantly higher than that of a long-term loan.
4. Refund. The overdraft is repaid as soon as the money is credited to the borrower's account. If there are not enough funds to fully repay the loan, then the remaining amount of the debt will be written off from the next receipt of money on the card. To pay off a consumer loan, you need to pay a fixed amount (monthly payment) on a certain day of each month.
5. Issuing a loan. A regular consumer loan is issued to the borrower only after submitting an application and approval from the bank. This procedure may take several weeks. An overdraft is issued immediately when the card owner needs money.

The table provides structured information on the differences between a consumer loan and an overdraft.

Overdraft for legal entities

The bank allows legal entities to use an overdraft, thus legal entities. individuals are given the opportunity to use more funds than is available in their current account. The bank gives the necessary part of the money at interest up to the current limits. The lender issues limits, usually no higher than 50% average size incoming money to the client's current account. It should be noted here that an overdraft can be activated at the bank where the current account is opened.

For a large company, using an overdraft on your current account can be a good way out of a situation where there is no own funds. This method of lending will allow you not to stop production due to a long time for money to arrive in the organization’s bank account. Banks in most cases give money without collateral, as they are confident that funds will soon arrive in the legal entity’s account.

Types of overdraft for legal entities

A loan in the form of an overdraft for legal entities is divided into several types:

• classic (standard) overdraft is provided to the client 6 months after opening a current account;
• advance overdraft is used only by reliable clients for settlement and cash services;
• overdraft for collection for borrowers whose account turnover is at least 75% of collected revenue;
• a technical overdraft is given to the borrower with guaranteed regular receipts of funds to the account.

Conditions for obtaining an overdraft

Each bank presents its own lending conditions to clients. For legal and individuals these conditions will vary. Let's consider VTB offers 24 for this type of lending.

Conditions for legal entities:

• loan amount – from 850,000 rubles;
• maximum amount according to the limit – up to 50% of the working capital in the client’s accounts;
• total term lending under the program - up to 2 years (each debt must be repaid within 60 days).

Advantages of this program at VTB 24:

• overdraft is issued without collateral;
• no commissions;
• repayment period – 60 days.

Conditions and benefits for individuals:

• interest rate – 12% per annum;
• the debt is repaid when wages are received on the client’s card;
• There are no commissions for non-cash purchases;
• Registration for salary clients occurs without a visit to the bank.

All information on this service for this bank is given in general; full documentation can be found on the official website of the financial institution.

Registration procedure

To apply for the Overdraft service, you must visit the bank office that was chosen to activate this option. It is advisable to choose the bank where the client receives a salary or has a current account.

For an overdraft to work, you need to sign an agreement on the provision of this service. The bank will provide this option only to those clients who have confirmed their solvency with a certificate of income or the negotiable component of their plastic card.

Which banks offer overdraft?

Today, almost every bank can provide an overdraft for its customers. Some of the most reliable banks providing this service:

1. Sberbank
2. Alfa-Bank
3. Rosselkhozbank
4. VTB 24 (VTB)

In any case, the borrower should be guided by the conditions of each bank and choose the best offer. First of all, you need to pay attention to financial institution, in which the client receives his wages.

Conclusions from the article

Using an overdraft is very convenient tool lending. In certain situations, such a simple way to obtain borrowed funds can be very helpful at the right time. The main advantages of this service are the convenience of receiving the missing amount into your account and subsequently repaying the debt. If you frequently need funds before your payday, you should think about connecting this tool to your card.

Video on the topic

Before concluding an agreement with a bank for an overdraft service, you need to familiarize yourself with it. Managers often emphasize the beneficial terms of cooperation, but you also need to be aware of the pitfalls. Then let’s look at what an overdraft is in simple words and what its features are.

What does the term “overdraft” mean?

The essence of an overdraft is to provide a short-term loan on favorable terms. The key feature is the presence of a limit that the borrower can use when there are not enough own funds for the purchase.

Overdraft credit is available to individuals and legal entities. In the first case, this is a targeted loan that the borrower can use at any time and withdraw the missing amount. But for legal entities, a loan is provided in a non-cash form to an account so that the company can make payments on debts.

In times of necessary and sometimes untimely expenses, a salary overdraft will become a real salvation. Compared to other loans, the service is more affordable and profitable. For a financial institution, this is a less risky operation, because the overdraft on the card is tied to salaries and other payments that will sooner or later be credited to the account.

A bank salary overdraft opens automatically. The advantage is that you do not have to visit the branch and supplement the application with documents. This type of service can be counted on by anyone who has salary card, and money is constantly coming in. The limit on the use of funds is small and when a salary is received it is immediately blocked. The overdraft amount depends on the salary received. You only need to pay for days of use. Regular customers can count on low interest rate.

Technical overdraft is provided without control of financial condition. However, you will have to provide a lot of documents. This option is suitable for traders working on .

Classic overdraft is provided in the amount of a fixed amount. When drawing up the contract, payment orders and possible costs are specified. To qualify for such a loan you must:

• Have been cooperating with the bank for a long time;
• Have work experience of more than 1 year;
• Cash receipts must be regular - twice a month;
• No debt obligations on the account.

The amount is set at monthly replenishment cards divided by two. Interest on payments is minimal.

Advance overdraft provided to regular customers who have high credit rating. The conditions for receiving are the same as for the classic version. The size of the limit is set on average for the last three months of receipts. The decision on cooperation and provision of services is made within a month.

An overdraft for collection is provided in the presence of a guarantor, who must own 50 percent of the business. In this case, a regular client must work with the bank for at least a year. And the decision on the provision of the service is made only after a month. Otherwise the conditions are the same - clean credit history, permanent deposits to the account, etc. important. So that the borrower uses income at 75% of the loan turnover.

What is an authorized overdraft

It is assumed that after the borrower writes an application, the bank must set a limit on the funds that the client can use. Overdraft limit, what is it? It is formed depending on the constant amount of income. Most often this is an overdraft salary project– the amount is 30-50 percent of incoming wages. Once a cardholder spends everything on the card, they can go into debt. As soon as the salary arrives, everything will shut down again. For using this service, clients pay 20 percent per annum.

Providing an unauthorized overdraft

Unauthorized overdraft – when the client needs to spend funds in the account in excess of the established limit. In this case, other terms of cooperation come into play. Interest for using an overdraft increases to 60 percent per annum. Requirements for borrowers are becoming more stringent. If you fail to pay the debt within the specified time frame, banking institution will impose a large fine.

There are situations when overdraft is technically possible:

• Due to a technical error by the institution. Double the limit amount could be credited to the account.
• With changes in exchange rates;
• For an unconfirmed operation. If the consumer previously made a purchase, and the money was written off after other financial transactions. Having familiarized yourself with the types of overdrafts, it will be easier to encounter similar situations. Overspending isn't common, but it's important to keep track of your money to avoid running into unplanned debt. Some banks issue transaction statements that already include the available credit limit.

A technical overdraft for legal entities is impossible, because all transactions with funds are approved and documented.

Regular receipt of money is the main condition for providing a card with an overdraft. A potential borrower must fulfill three important points:

• Having a good credit history;
• Availability of a permanent place of work, continuous work experience;
• Registration at the actual card service location.

After submitting a signed application, the bank begins to consider possible limits. Otherwise, each financial institution sets its own rules for receiving services.

Each bank has the right to provide its own list of required documentation. The classic option is a passport, an additional identification document, TIN, an application, a questionnaire, a certificate of income - a package of documents that will be required to issue a card with an overdraft. The grant period varies, but is most often twelve months.

In order to increase the volume of working capital, legal entities try to use not a loan, but an overdraft.

Firstly, the accounting department will appreciate it, because the overdraft does not require posting. Secondly, it is considered a preferential form of lending, which is provided to regular customers. A temporary solution allows you to purchase goods, make related payments, and then immediately cover all interest when funds arrive in your account. Legal entities must have a current account, the bank provides their cash services, and a separate agreement is drawn up for the provision of the service.

How does overdraft work? What are the differences from a loan

On credit card overdraft is issued faster, is simpler and favorable conditions. To understand the differences, let's consider each option separately.

Loan terms:

• The term is determined by the size of the debt and the borrower’s ability to pay it;
• The debt must be repaid in equal installments every month;
• The loan amount may exceed your actual monthly income;
• The rate for using the service is agreed upon at the time of signing the contract;
• All money is issued immediately after all conditions are agreed upon and recorded on paper.

A bank card with overdraft is:

• The term of use of the service is maximum 2 years from full repayment debts every month;
• The loan amount cannot exceed the monthly income in the form of wages or pensions;
• The amount used is covered immediately upon payment of wages;
• Interest is paid for each day of use;
• Instant provision of funds after completing an application from a regular client of the bank.

The difference between an overdraft and a loan is the ease of registration, short-term use and a fixed amount.

Pros and cons of overdraft and what does it give to a competent user?

A debit card with an overdraft has its advantages and disadvantages.

The advantages include:

1. At any time you can get the necessary amount and resolve the issue with an unplanned purchase;
2. Interest is paid on actual size loan;
3. You can use it regularly: after paying off the debt, take out the amount again and so on in a circle, but strictly within the limit.
4. Overdraft for business is good opportunity speed up the rotation of funds, cover the payment of debts and not remain in important point without work;
5. When registering, you do not need to look for a guarantor;
6. You can disable the service at any time;
7. Lack of paperwork during registration;
8. An overdraft does not require posting in accounting, because it is not a loan at all. It will just be “-” according to the current account.
9. The bank will constantly remind you in messages about the need to repay the debt, so you will not forget the deadline for covering it.

Having tried the service in action, everyone finds disadvantages:

• The contract is concluded only for a year, then the service must be renewed again;
• High rate;
• Minimum repayment terms and amount within the limit;
• The amount is repaid in full and not in parts;
• Hidden payment when using funds, for example, for cashing out a fixed amount;
• Read the terms of the agreement, banks reserve the right to change the interest rate and reduce the payment terms;
• The user may not even know that the Internet overdraft is already connected, and the amount of wages doubled is displayed on the account.
• Credit trap - people eventually stop investing in established deadlines and the debt is gradually growing.

Why is overdraft dangerous for individuals?

Overdraft for individual entrepreneurs and individuals is a real “provocateur” of debts. Having an additional amount in your account, sooner or later you start using it. A habit arises of going into a constant “minus” and over time the boundaries are washed away, the person is not able to make payments on time, the debt instantly grows.

At any moment, a person can use “easy” money and this drives the client of a financial institution into debt. The feeling of freedom and availability of funds causes excitement, which is why Western psychologists have long been using the term “credit addiction.”

For individuals, this is the main danger in using such a service. If you don’t lose your head and use it wisely, then the service really has its advantages.

How to disable?

When registering it and at the moment when the bank manager tells you what an overdraft is, no one talks about how to turn it off. To refuse the service, you must write an application and provide documents when visiting one of the departments of the institution.

Refusal does not entail any penalties. If something like this happens, you urgently need to go to court.

You can disable the service without leaving your home; it is enough to have a connection to Internet banking. Managing your account is easy from home. IN personal account set the limit to a minimum amount so that it is impossible to use the funds. In case of emergency, you can remove the restriction on your own through your personal account.

• Technical overdraft is possible when replenishing your account from another bank. In this case, the funds are immediately withdrawn; often the bank does not have time to complete the operation and the limit can be used twice.
• Psychologists associate overdraft with “credit addiction,” so gambling people should be careful.
• For the service to be useful, it is important to monitor account balances and transactions performed. Feel free to visit the branch periodically and request an extract to compare receipts and expenses. When signing a contract, consider your financial capabilities.