Germans have overdrawn their accounts with around 41 billion USD and are paying immensely high interest rates. It is not for nothing that many consumer advocates warn about overdrafts that are so easy to obtain. Many consumers use the overdraft facility granted by the banks, or short term overdraft facility. By overdrafting the current account, a short-term financial bottleneck can be quickly and easily compensated for.

The overdraft facility is the most expensive loan there is. Many consumers use it not only to bridge sudden money shortages, but also to buy consumer goods. A new computer or a new piece of jewelry is quickly debited from the checking account, the overdraft facility makes it possible. A overdraft facility should actually be returned quickly and is not intended to use the loan for months and years. The high overdraft interest alone makes a credit facility more than expensive. The solution should be a loan despite a minus in the account. The amount of the overdraft is two to three months’ salary.

Credit in spite of minus on the account

Credit in spite of minus on the account

If the account slips into the red, this can be very expensive for the customer. Since an overdraft is estimated at 13% or more in interest, the loan should be paid as soon as possible or replaced by an installment loan. As many consumers know, the repayment of a overdraft facility does not work. The debit remains in the checking account month after month and devours a huge amount of interest. Many banks provide the loan to replace a checking account. The house bank is also accommodating when considering rescheduling the overdrafted current account.

A loan despite a minus in the account can also be taken out by other banks, some of which offer better terms than the house bank. The branch and online banks in particular have the advantage of being able to offer better conditions because they do not operate a branch network and do not have to pay a large workforce. An online loan comparison calculator should be used to find the right installment loan. You can find them on the Internet and on many finance portals. The user only enters the loan amount and the term and then the cheap loan offers are visible.

In addition to their favorable conditions, online loans also score with simple applications. It can be requested from the PC on the relevant page of the bank. After the loan has been approved in spite of a minus on the account, the customer still has to carry out the PostIdent procedure in a post office so that it can be legitimized. The bank will then transfer the loan. This is the easiest way to get a loan despite a minus in the account.

The outlook

The outlook

The advantage of a granted overdraft facility is that you don’t have to apply for a long time, but are actually immediately available. The interest goes down with each payment, there are no fixed monthly installments. Banks can also cancel the overdraft facility if there are doubts about the customer’s solvency. Anyone who overdraws the account beyond the agreed credit line must pay additional overdraft interest. Many consumers use the overdraft facility like a small loan if the job is lost and the money is reduced.

An installment loan is much cheaper than the overdraft facility. Installment loans can currently be granted with interest of 4.5%. The so-called call credit (also credit line) has functions such as the overdraft facility, but a certain amount must be repaid. A good way to get off a dispo is to lower the dispo limit. The best way to do this is when a receipt of money can be recorded. Then the account is zero for many consumers.

Although many customers try to balance the overdraft facility each month, this does not work. If you reschedule the overdraft facility with a loan, there is a risk of indebtedness. One should be aware that less money will be available in the future due to the loan despite the minus on the account.

In summary, rescheduling the overdraft is a good solution. However, it should be borne in mind that monthly installments will then be payable in the future and possibly for years to come. If they can be paid, a loan is good in spite of a minus in the account, but if payment in installments involves problems, you should avoid doing so. Then prefer to leave the overdraft facility until the financial situation has relaxed somewhat.

With savings measures that the customer can carry out himself, such as with a household book, where all income and expenses are recorded, the finances can then slip back into the balance.

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