Finance Blog
If you have an overdraft then you may wish that you could pay it off or perhaps pay it off more quickly than you are already. They are different to other loans in the way that they work and it is important to understand how they do work and how you can save money by not using them.
An overdraft is associated with a current account. Customers that have a good credit rating will be offered the opportunity to have an overdraft. The amount will be set by the bank and they will be able to spend more money than they have in their account as long as it is within their overdraft limit. There will be an interest rate for this borrowing as well as possibly a fee as well. Some people manage to borrow more money than they have been allowed. This is known as an unauthorised overdraft and it will c