Should you make a loan to make up a bank overdraft?

 

The bank overdraft can be recovered very quickly with a consumer credit of the renewable or personal type but is it really the best solution? Not so sure.

Credit for bank overdraft

Credit for bank overdraft

Many households think of credit to make up for their bank overdraft and thus avoid agios repeatedly. It is efficient, fast and the accounts quickly return to green, but this solution has consequences: increasing the debt ratio, increasing the amount of monthly payments and therefore monthly charges.

Objectively, using a loan to make up a bank overdraft only makes matters worse. Certainly, the bank overdraft is filled in the short term but in the long term, the situation will return to the starting point, if not worse since the share of monthly payments will increase. The solution may come from another credit transaction, that is to say, the consolidation of loans.

Credit consolidation to rescue the overdraft

Credit consolidation to rescue the overdraft

The principle of credit grouping is to consolidate all the loans in the household into one, which allows the new lender to extend the repayment period and reduce the amount of monthly payments. Thus, the monthly share dedicated to loan charges is reduced (sometimes up to 60%), which avoids ending the month short.

The consolidation (or repurchase) of credit can also include an amount dedicated to a new project, which will allow the passage to fill the bank overdraft. Good to know, this operation can lead to an increase in the total cost of the credit. Simply, by readjusting the loan charges to the household’s financial situation, the latter finds a balanced budget and avoids difficult ends of the month.

Overdraft credit for overdraft: simulate now

Overdraft credit for overdraft: simulate now

This operation offers an improvement of the situation in the long term with a very effective readjustment of the amount of the monthly payments. In addition, the new project will fill the short-term overdraft.

The simulator below lets you know if the project is feasible according to your current situation. A field provides for entering the amount of the current overdraft. A first estimate of the monthly payment will allow you to get an idea of ‚Äč‚Äčthis operation. The simulation is free and without obligation.

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