Overdraft facility credit – today or better tomorrow?

Do you still have doubts whether a loan to compensate for overdraft facility is worthwhile in your case or whether an iron saving would compensate for the overdraft facility?

We would be happy to calculate how much your current overdraft facility will cost you. In addition, the sample calculation will clearly show you that if you save yourself, if you allow yourself to be disciplined, you will pay extra.

The overdraft facility not only disappears more easily with an installment loan at a low interest rate and compatible installment payments. You save a lot of money from day one.

Dispo is part of everyday life in most German households. About half of all current account owners use their overdraft facility occasionally or even permanently. Account owners are not in a hurry with a credit to offset the overdraft facility. As long as the house bank does not warn, given the high overdraft interest this can take decades, everything remains the same.

It is of course planned in every household to put the overdraft facility in its place by saving iron. With a little self-discipline, it would be a laugh if the account didn’t come back to zero without a loan. This is exactly why the overdraft solidifies as soon as a certain account balance is reached. The level is different for everyone, but statistically the level is 3,000 USD overdraft.

Short question: “Do you know how much overdraft interest your house bank charges”? Most only know that the overdraft facility is expensive. Exactly how much money the house bank earns is unread on the account statement of the statement. Stiftung Warentest wanted to know more and found overdraft rates between just under 5 percent and 17.5 percent. The middle field in our research was around 14 percent effective interest.

For comparison, an inexpensive installment loan is around 2 percent effective interest pa, i.e. 12 percent lower. It becomes clearer that there is no time for the credit to offset the overdraft facility if real figures in USD prove the interest costs.

How much does the overdraft facility actually cost?

How much does the overdraft facility actually cost?

For the calculation example, we assume an overdraft of 2,900 USD. We do not use the bank’s overdraft facility for extreme examples, but for an average of 14 percent effective interest per annum. The overdraft facility thus costs the account holder $ 406 a year. With self-discipline with regular card payments, that’s a thing. Let us assume that it will work.

In 36 months, the overdraft facility should be offset by pure savings. As an annuity loan calculates, a monthly savings rate of 97.96 USD would have to be made. In 36 months of iron saving without becoming weak, a total of $ 626.56 interest would be paid. In comparison to the “permanent dispo” a clear saving. But a credit for overdraft facility does much more.

In the free loan comparison, there is currently 2,900 USD in credit at an interest rate of 1.99 percent that is independent of creditworthiness. The monthly payment in installments would be 14.93 USD cheaper than the savings rate. The household budget would only have to shoulder 83.03 USD a month. The rate can be so much cheaper, since instead of 626.56 USD interest only 89.01 USD financing costs arise.

Fast installment loan for overdraft facility compensation – don’t give away money

Fast installment loan for overdraft facility compensation - don

If you are not in a hurry with your overdraft facility through an installment loan, you mean really well with the house bank. There can be no other reason, such as no time to apply for a loan. The credit comparison of regular credit offers for overdraft settlement takes a few seconds. Only two entries are required, loan amount and term, since “at your disposal” is practically always preset.

Just select the provider you want. If the credit requirement were about the same as our numerical example, you would earn a good 500 USD in the next five minutes. Even inexperienced users do not need more than five minutes to complete the online application. If a loan offer with Videoident is chosen, borrowers don’t even have to leave the house for the online loan.

The legally required ID check takes place when applying via Videoident via Skype. An employee of the test company calls via video telephony within about 30 minutes. He checks the ID card and the documents to be submitted. Depending on the provider, the credit required for the overdraft facility can reach the checking account within 48 hours and save interest.

Weak credit rating – overdraft facility is always worthwhile

Weak credit rating - overdraft facility is always worthwhile

People with a somewhat weaker credit rating are often sitting particularly deep in the dispo trap. The overdraft facility is granted to them. The house bank does not want to grant an installment loan for debt rescheduling with low income or precarious work. Instead of 14 percent, as in the sample example, people in this situation often even pay up to 20 percent interest.

The overdraft facility above the actual overdraft facility, the so-called approved overdraft for a limited time, leads to the high risk premiums. A regular loan to cover the overdraft facility by a guarantor or co-applicant would be possible. However, we recommend maintaining independence and pointing out alternative loan offers.

For example via Cream Bank or Astro Finance, overdraft facility compensation by private donors would be possible. With the application via Cream Bank, banks and private investors willing to take risks would be reachable at the same time for the request for credit for the overdraft facility.