Why financial obligation is not all bad – and how to handle it

Baffled by borrowing? Read our guide to financial obligation – the great, the bad and the unsightly – and get strategies for staying in addition to it

General information regarding overdrafts

An overdraft limitation is really a borrowing center that allows one to borrow cash throughout your present account.

There are 2 forms of overdraft – arranged and unarranged.

An arranged overdraft is just a limit that is pre-agreed which enables you to spend more money than you have got in your present account. It may be a security web to pay for short-term outgoings, as a bill that is unexpected. It is really not appropriate longer-term borrowing. We charge a fee for almost any time associated with the thirty days you go beyond any interest free limit you may have that you use your arranged overdraft where.

An unarranged overdraft is whenever spent more income in advance or you have exceeded an existing arranged borrowing facility than you have in your current account and you have not agreed an arranged overdraft limit with us.

You can easily just make re payments from your own account when you have sufficient money into your account or with an arranged overdraft to pay for them. Barclays will usually make an effort to get back any deal which could just take your account into an unarranged overdraft position. Having sufficient cash in your account or having an arranged overdraft limit may help avoid payments such as for example concern bills from being came back unpaid.

On extremely rare occasions we might be not able to get back a repayment ( ag e.g. as a result of an offline deal made for a journey) together with account may enter an unarranged overdraft.Continue reading→