Are you overdraft debts? This article can then help you visualize the situation with more clarity and focus. Getting into doubt is something common in this troubled financially but calm phase that has a solution and a way out of the hole. Here are some tips for you to settle the overdraft debt !
How to organize with the debts of the overdraft?
Before talking about how to solve this, it is worth explaining what exactly the overdraft is. This type of credit is usually pre-approved by the bank and is released to current account customers. It is the move that makes the value of the check be higher or lower and this will vary with the circulation of money in the client’s account.
The debts of the overdraft never start out of nowhere. This credit feature in the account should be more used in a time of need, but that the client has how to reset it in some way, after all, if it does not, that’s where the famous snowball begins.
To resolve this situation with the bank, care must begin well before using pre-approved credit in the checking account. If you have an expense and earnings control sheet, you will know exactly what for the following month you will need more money and consciously you can count on the overdraft in a timely manner, already thinking about how to return the necessary amount without leaving debts.
Usually, in a continuous variation, the overdraft interest rates exceed 10% and that means a lot depending on the amount used by the customer.
How to do debt negotiation overdraft?
To make the negotiation and to avoid more twisting with the debts of overdraft it is fundamental to look for its manager. This is the first step not to let the accounts pile up and even foul the name, consequently losing credit in the square.
In the meeting with the manager it is indicated to expose your situation well and act financially. Propose an agreement to repay the debt and seek lower interest rates. At the time of making the agreement, consider the value of the portion that you will pay and do not extend the payment period as much as possible, as this increases the negotiation interest.
If you are in doubt, do not close the deal on time and take a good look at the manager’s proposal. Make sure you do not go into debt and pay overdraft debt with exorbitant amounts.
Organization to comply with debt settlement agreement
If you did negotiate debts from overdraft then prepare to keep bills up to date. The first step, even before talking to the manager, is to take a snapshot of your accounts, consider everything that comes in and out, take stock of the small details that involve buying or paying.
It is from this financial picture that you will get a real sense of how much you can pay per month in the agreement. If done, if you organize on top of that, keep the cost and gain forecast for the coming months.
Exchanging one debt for the other and taking off the overdraft
If you are unable to pay off the overdraft debt, then look for an alternative. Financial experts defend the idea that, in the last case, the client can opt for the minor interests of the consigned credit. This exchange will help the family budget and will avoid wasting more money!
In the year, for example, the interest rate on credit on paper reached about 23% per year. Meanwhile, the overdraft has nearly reached 150 percent a year. The difference can certainly be felt in the pocket and in the size of the debt.
If the value of your used overdraft is not large, then bet on the payday loan or payroll deductible loan to take out the bank and keep more installments in account than possibly the direct negotiation with the bank.
Another possibility is to make the portability of overdraft debt to another financial institution. The client itself can make the request to direct the debt open to a bank with smaller, more affordable rates.
This exchange is free and between banks. The advantage is that, in addition to minor interest, banking portability brings exemption from IOF (Tax on Financial Transactions).