Do you know how to avoid red numbers? …
Quedarnos in the red is usually a difficult situation to carry and we must avoid at all costs.
The main reason we should avoid it is the high costs associated with staying in this situation.
If we are a bank account holder, one of our main tasks is to make sure that this account is always in a solvent situation, even when the end of the month arrives.
Having the short account can cost us a lot of money due to the fees that the bank will charge us for having the account in that state.
This state in our account supposes a kind of “loan” for them, that they have allowed receiving a receipt without we had the necessary balance to pay it.
Ideally, not to go through these problems is to avoid staying at all costs, if it is not very possible that we end up entering the list of the ASNEF and then we will have problems to get fianciación.
To do this today we have prepared some tips that, although they are not 100% infallible, can help you to have a healthy domestic economy, and thus not get involved in one of these “problems”.
Red numbers meaning
Being in the red … We use this expression to refer to the fact that our account has run out of money and the bank has paid receipts on credit.
Your bank account is in the red. Traditionally, the bank sends you a letter with a red print as a warning that your account is in negative / minus (-).
This has quite high costs, so it is important to avoid it, but …
The overwhelming number of judgments against banks and in favor of consumer interests does not stop.
The Provincial Court of Álava has ratified a ruling that annuls the commissions that Kutxabank charges for the red numbers.
The commissions for those also known as ” discovered ” have the days numbered.
Consequences of red numbers
It is almost inevitable that one day you log in to your online bank account and see that you have an overdraft in your account.
Unfortunately, red numbers are not uncommon, and they are not inexpensive.
The red numbers or discovered in account generate a considerable added expenses in addition to many operational problems in aspects such as direct debit payments.
What is an uncovered commission?
When your account is left in negative balance because normally either a direct debit or a charge has been charged to the bank account without sufficient balance, the bank will charge us an overdraft fee.
How many days can I be in red numbers
When you have more payment obligations in your bank account than money, as we have seen, your bank has several options.
- You can return those obligations without paying, probably charging a fee for having insufficient funds.
- You can also pay the creditor as requested, leaving your balance is negative. When this happens, you are charged a discounted fee.
Failure to pay this fee and failure to rectify your negative balance quickly gives the bank the option to close the account.
However, if you communicate with your bank in advance, you may find that they are willing to work to solve the problem.
Banks generally grant the right to close an account at any time after giving a specific period of oral or written notice, usually five to seven days.
In the case of uncovered accounts with red numbers, however, banks do not legally have to give advance notice if they believe it is necessary to close the account to protect themselves from risk or loss of money.
As this is a matter of internal policies, banks vary the time it takes to close negative accounts according to the size of the numbers in red and the banking history with the consumer.
This is where bank loyalty works in your favor.
Many usually wait 30 to 60 days before doing so, while others can wait four months.
The extended period occurs because bank officials would prefer that you update the account instead of closing your account.
The latter requires that the bank charges the debt and registers it as a loss on their books or that they charge you with interest.
What do I do to avoid the red numbers?
We must have a minimum financial cushion to ensure that if a month we pay later than normal, we can respond to incoming bills and not enter in the red.
In a specific and unavoidable case, there is always the possibility of speaking with our bank and negotiating to accept the payment of the receipt that will arrive.
If the bank accepts our request to eliminate the red numbers from our account, then we will have to return the money advanced as soon as possible with high interest and commissions that will make us sure that does not happen again.
So we think that maybe this will not be the best way to get out of the red numbers in our bank.
It is very important to understand perfectly what it means to be in red, this link can help you understand it better.
Avoid an overdraft in the bank account is very important, you may not know the consequences of an overdraft in the account.
Tips to avoid red numbers
As we said before, knowing the consequences of leaving our account in the red can help us avoid this type of discovery.
Our bank does not like anything that our account is exposed, and this will also involve extra expenses for us.
Let’s see now some tips to avoid the red numbers in our bank.
Finance purchases at 0%
If we are going to make purchases during the month, it is advisable that we look for an entity that allows us to finance those purchases at the 0% rate.
But beware: we must read the fine print because many entities that advertise themselves as having no interest, then charge us an “entry” commission or depending on the amount we spend.
If we get an entity that really finances purchases at 0%, we can use it to make our purchases and pay them in convenient terms.
Plan, control and save to avoid entering red numbers
A family susceptible to be seen in red numbers must have these words burned, as they must be their maximum at the economic level.
We can not have a healthy economy if we do not plan our expenses and control them.
That is why we insist so much on the importance of having a family budget.
Seek professional financial help
If you find yourself unable to make ends meet or not see yourself in the red often, we recommend that you seek help from a finance professional.
It can usually help you see what expenses you can limit and where you are losing more money than necessary.
A vision of our income and our expenses by someone else can help us see our economy with more perspective.
Also, a manager or similar could help you by giving you some guidelines to start with your family budget if you have not started yet.
But beware, do not trust anyone.
Get extra money quickly
If it is already too late to go to any of the other options and you need urgent liquidity, the best thing you can do is look for quick money.
You can ask a relative or trusted friend, and return it when you have entered the payroll.
Another option is to sell some of the utensils and items that you have at home that you do not use to get some cash.
If they allow us in our work and we are not asking for them month after month, they may accept that we ask for a payroll advance a few days before the end of the month to pay some last-minute bills.
However, you should not let this option become a habit since you will see yourself living in advance and that can involve you even more in debt when you lose control. how can i get out of payday loan debt?
Requesting a cash advance is a responsibility, but you can have several options and get out of the red numbers.
Fast online loan
One more option that you can consider if you need quick money before staying in the red is online loans.
As you know, we strive to bring the best credits in the market to our comparators, so that you can request your money and feel safe.
We invite you to take a look at our comparators, even if you are in ASNEF.
You can request the money you need easily and have it in your account in a few minutes.
Also, if it’s easier for you, you can compare and request your credit from our totally free mobile application.
What if the bank overdraft happens again?
In the event that this situation becomes repetitive and we do not try to solve it or notify the bank, it may be that our bank begins to return all the receipts that reach our account and we have to face the corresponding delay costs.
In addition to other problems such as power cuts, fines for late payments, adhesion to delinquency files such as the ASNEF or RAI …
Without any doubt, it is convenient that we organize ourselves well to make sure that our account has enough money when the receipt arrives.
Since the bank does not like anything we leave our account uncovered.
A bank account in red for a bank is like lending money without any guarantee that it will be returned.
That is why we apply such high interest and commissions so that we avoid reaching this situation at all costs.
Therefore, if we want that it does not happen to us more it is worth to pay what it touches at the beginning that to delay the payment and to finish paying much more than what we had to pay.
Did you find out how to avoid red numbers?
The best methods to prevent situations like this from happening are the organization, calculation, and control of our monthly income and expenses.
Another point that is essential is to register our payroll in the same account where the receipts pass us so that we have a guarantee before the entities.
That way they usually allow discoveries of a maximum amount equivalent to the payroll are to charge commissions since they know that when we collect the payroll will be returned the money that we have advanced.
Another alternative is to open a line of credit to be able to pay for the payments while we wait to collect. We will only pay interest on the money imposed, in addition to a small fixed interest.
The discovered is the most expensive means of financing that banks offer us, so we must avoid them at all costs.
Something we can also do to solve a liquidity problem of this type is to request a quick credit like the ones we have in our financial platform.
That way, we can pay the bills on time and return the money to the lender when we have the liquidity.