An overdrawn account is not a trivial offense. Even if this situation is quickly brought about, the banks and savings banks do not like to see it at all and punish the account owner concerned with high interest rates for the overdraft. In the worst case, the account may even be blocked until a settlement can be achieved. This means that payments and transfers are no longer possible. If you are particularly in arrears and overdraw your account regularly, the bank can even terminate you and you have to look for a new provider. To prevent this from happening, you should think about a loan to balance your account in good time. It helps you to restore the necessary liquidity and to avoid unpleasant annoyance and costs.
Why account balancing is so important
Do you like giving away money? Probably not. If you overdraw your account and do nothing about it, you are giving away a lot of money. Perhaps unconsciously – despite all of this on very unfavorable terms.
That the account is overdrawn is certainly not bad. This can happen to anyone and it happens thousands of times a day. It is bad if you do not take countermeasures and undo the overdraft. Because then the bank estimates interest that will leave you speechless. While you are still well served with 10 to 15 percent overdraft interest when using the overdraft facility, you have to dig deeper into your pocket to overdraft the account or the overdraft facility. 20 percent is not uncommon here. Gladly also a little more. Every month. Until you have balanced the overdraft.
An installment loan as a loan to balance your account
So don’t think twice and use a loan to effectively balance your account. As long as the overdraft is not yet showing itself negatively in the Credit Bureau, there are many options available to you. Because with a good income and a good Credit Bureau you can take out almost any loan.
It is important that you choose a loan offer that is not earmarked for the account settlement. The money from the loan must be freely available so that you can compensate for the overdraft. You should also avoid taking out the loan at the bank where you overdraw the account. The chances that you will get a good loan offer there are almost zero.
It is better to find an independent lender, which you can ideally determine with the help of a comparison. You can easily find a comparison calculator on the Internet that will help you choose a suitable offer for a loan to balance your account. Pay particular attention to the effective interest rate, which shows you how expensive the loan is to balance the account. It is significantly lower than the interest you have to pay for the overdraft. Nevertheless, you should make sure that the interest rate is as low as possible so that you don’t waste money unnecessarily.
When should you consider a bank balancing loan?
The loan is always worth it if you can foresee that you cannot reverse the overdraft on your own. So don’t wait too long and act quickly. The faster you act, the greater the choice for you. Because if the bank overdrafts your account or even terminates it, it will be very difficult to find a good loan offer.
Then you sometimes have to resort to a foreign loan or a personal loan. Both types of loan are available as small loans, for which Credit Bureau is not relevant. However, the effective interest rate is relatively high, so your savings will be minimal. And in all likelihood that will not be your goal.