How to Get Help With Loans & Overdrafts

What Is an Overdraft?

According to Investopedia, an overdraft is an extension of credit from a lending institution that is granted when an account reaches zero.

The overdraft allows the account holder to continue withdrawing money even when the account has no funds in it or has insufficient funds to cover the amount of the withdrawal.

Basically, an overdraft means that the bank allows customers to borrow a set amount of money. There is interest on the loan, and there is typically a fee per overdraft.

As with any loan, the borrower pays interest on the outstanding balance of an overdraft loan.

Often, the interest on the loan is lower than the interest on credit cards, making the overdraft a better short-term option in an emergency.

In many cases, there are additional fees for using overdraft protection that reduce the amount available to cover your checks, such as insufficient funds fees per check or withdrawal.

What Is a Loan?

According to Investopedia, a loan is when money is given to another party in exchange for repayment of the loan principal amount plus interest.

Loan terms are agreed to by each party before any money is advanced.

A loan may be secured by collateral such as a mortgage or it may be unsecured such as a credit card.

Revolving loans or lines can be spent, repaid, and spent again, while term loans are fixed-rate, fixed-payment loans.

A loan is a form of debt incurred by an individual or other entity.

The lender—usually a corporation, financial institution, or government—advances a sum of money to the borrower.

In return, the borrower agrees to a certain set of terms including any finance charges, interest, repayment date, and other conditions.

In some cases, the lender may require collateral to secure the loan and ensure repayment.

We Can Help With the Following Types of Debt

Benefit Overpayments
HMRC Debt
Credit Card Debt
Council Tax Arrears
Loans & Overdrafts
Catalogue & Store Cards
Court Judgments
Rent, Gas & Electricity Arrears

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