Anyone who lives permanently in the Dispo pays high interest and is under stress. So it makes sense to balance the credit line as quickly as possible.
This can be worth a installment loan: your account balance is immediately out of the target and the interest rates are significantly lower than the Dispo.
Checking account overdrawn – what now?
The Dispo (short for disposition credit ) allows to cover the current account. This can be very useful in different situations, for example when an urgent purchase is necessary and the salary has not yet been credited. But with the credit line caution is advised: Who does not compensate him quickly, but always strained, can fall into a debt trap. The disbursement rates are particularly high and can be three to four times the interest on a installment loan. So the checking account is slipping further and further into the minus. A possible step would be to make savings available and thus to balance the MRP. But often this is not possible – otherwise the account would not have been overdrawn in many cases.
Debt credit balance with a installment loan
An easy alternative to get out of the red is to take out a installment loan. You can use the total to directly clear the credit line. It is best to choose a sum that is slightly higher than the amount by which you have overdrawn the checking account. This will help you to avoid falling again immediately. As a result, you pay back the loan in manageable monthly installments. The interest costs are significantly lower than if the collection is used permanently. For example, our bank’s instant loan can be quickly and easily applied for and is available within a short time.
Long-term goal: life without discretionary credit
There are several measures you can take to avoid recourse soon. Ideally, you will find a way to increase your earnings, for example, through a salary increase or a side job. But easier said than done – in many cases this is not so easy.
Then it says: Reduce spending. A household book can help you keep an eye on your expenses. Often the monthly fixed costs can be reduced by canceling superfluous contracts. Even a change to a checking account with better conditions can make sense: With a free account you save money every month and lower interest rates are an advantage in case you have to cover again.