Payday Loan or Overdraft – Which One Should You Choose? – Business MattersBusiness Matters

When you are met with unexpected bills, it can be a stressful process to make sure that you cover all the bills without damaging your finances.

However, with several options such as payday loans and overdrafts to choose from, which is the right one for you? In this article, we will be providing you with information on which one is the best option for you.

What Is An Overdraft?

An overdraft is an available option on a current account that allows you to borrow money from your current account. When you borrow money in your overdraft. You will have a minus amount in your current account, this means that you will have to pay back this amount to ensure that you are in the green. It is important to note however that there are two different types of the overdraft that you can use, these are as follows:

Arranged: This is an overdraft given to you on your account that is agreed between you and your bank manager.

Unarranged Overdraft: This is when you spend more money than you have and did not arrange this with your manager. This will mean that you have exceeded your overdraft limit and could be spending more in the long term.

Understand The Different Loan Fees

When you have looked at the overdraft that you have, it is then time to make sure …….

Source: https://bmmagazine.co.uk/business/payday-loan-or-overdraft-which-one-should-you-choose/

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