When you are overdrawn on your bank account, the threat takes the form of agios. These are the interests which are collected by the bank when you are no longer in credit and therefore you borrow with each new withdrawal. This can quickly become a hellish spiral, since the more the discovery becomes deeper the more the agios accumulate and increase. Here are some tips to avoid going into debt.
Do you know your overdraft procedures?
When you open a checking account in a bank, you can request an authorized and free overdraft from your advisor. This allows people who sometimes have difficult ends of the month to avoid rejection fees when paying by card or to pay agios provided that the overdraft is quickly filled. The amount of overdraft authorized and the duration of it vary depending on the institution and your financial conditions. It is nevertheless possible to renegotiate it, especially if it is the first time that you are going into the red.
Check your bank account daily
If you check your bank account every 36 of the month, you may have a bad surprise! Regularly consulting your account and adjusting your expenses according to the amount therein avoids sinking into overdraft… Furthermore, it is now possible and recommended to subscribe to an option that will allow you to ” be notified by your banker (e) if you arrive below a certain threshold. In this, mobile apps from banking establishments are essential!
Take out an emergency credit
Health problem, urgent repair of your vehicle, purchase of a new household appliance… There are many reasons for having to take out a large sum of money at a time T. In order not to end up with paying agios, you must quickly notify your bank which will offer a solution in most cases. In addition, it is possible for you to take out a consumer credit – less expensive than the agios – which will allow you to keep you afloat for a while, by smoothing the reimbursement of the amount over several months.
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