Using the current account on the checking account is a costly affair. Nevertheless, many consumers use it and pay high interest rates. Above a certain amount of the overdrafted current account one should think about a loan for the account settlement.
The disposition and the consequences
There is a risk of over-indebtedness when using the disposable provided that it has been used to the limit all the time. The overdraft facility is actually intended to alleviate a short-term bottleneck. If the salary or wages are returned the next month, the account will be settled again. However, many consumers use it on an ongoing basis because they cannot make do with their monthly payment.
This is precisely the risk of over-indebtedness. Anyone who constantly moves to the overdraft limit no longer has any financial leeway. In the worst case, even the bank threatens to terminate the overdraft facility if the account is not cleared again. You shouldn’t let it get that far.
Balance the account again with a loan
As soon as the first signs of over-indebtedness appear, you should act quickly. The worst can be prevented with a timely credit for account balancing. If there are no negative entries in the Credit bureau, the house bank will not cause any problems with a loan for the account settlement.
With a debt rescheduling loan or installment loan to balance an account, you save the high interest for using the disposable. At the moment, interest rates are low. The borrower is free to choose the amount of the monthly installments.
In order to get a loan, a permanent employment relationship is necessary. There can be no negative entries in the Credit bureau. If the current account is not cleared in time, a negative entry can quickly be made if the bank terminates the overdraft facility. This situation can be avoided if a loan is taken out in time for the account settlement. This means that the creditworthiness remains flawless, because a loan is not a negative feature.
Looking for a cheap loan
If you do not want to contact your house bank for the purpose of balancing the account, you will find plenty of financial institutions on the Internet that offer cheaper loans. With a loan comparison, you can quickly find out the best direct banks. The convenient thing is that a loan can be applied for directly online.
If the bank also offers the new video identification procedure, then even the annoying bank to a post office is no longer necessary. With this video identification procedure, the borrower is legitimized via the PC. The only requirement for this is an installed webcam. With this procedure, the customer is directly connected to the bank and receives an acceptance or rejection immediately. This also speeds up the payment of the loan amount, because the loan contract can be printed out and signed. As soon as the bank has received this, the transfer will be made.