I want to suppress my loan payment for a month they told me that overdraft is better than suppressing the payment . What is overdraft then?
2006-08-05 03:13:00 · 5 answers · asked by cezl 1 in Business & Finance ➔ Credit
overdraft is an extra amount of money the bank will put in your account in case you need it
for example your loan payment
if you use it though you will be charged a fee and it has to be deposited back in so many days
2006-08-05 20:35:45 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Overdraft means writing them a check that you know is going to bounce. I believe what you need to tell them is that you need a forebearance for a month. The penalties and interest for not paying anything to the loan company are much higher than paying the bank/loan company fees for a bounced check. Plus, it can buy you a little more time. Not paying at all looks worse than a bounced check.
2006-08-05 10:19:46 · answer #2 · answered by sherijgriggs 6 · 0⤊ 0⤋
An overdraft is taking more money from a bank than you have in your account. If it is authorised you pay interest on the money you take so it is a bit like a loan. If it is unauthorised your bank will chrge you for it bigtime.
2006-08-05 10:22:43 · answer #3 · answered by malcy 6 · 0⤊ 0⤋
its like an payment made to bank for the party to whom you want to give the overdraft and he can reimburse the money with that overdraft from bank
2006-08-05 10:25:29 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Taking money that is not really yours.
2006-08-05 10:16:16 · answer #5 · answered by Anonymous · 0⤊ 0⤋