2023-09-01 14:41:59
The credit card is one of the payment methods most used by Spaniards and there are 88 million cards in circulation in the country. Likewise, the use of this plastic money has experienced an increase of 29%, according to data from the Bank of Spain (BdE), which suggests the desire to use this payment method. However, this tool can be a double-edged sword, since if a record of the money in the account is not kept and more than what is due is spent, the owner of the account may find himself facing a bank overdraft or red numbers, when the current account balance falls below zero euros.
But what are the red numbers? “A credit that the bank grants at will without our needing to authorize it. It is supposed that, with the overdraft, it prevents us from damages derived from non-payment, such as a power outage or an accident for which the insurance does not cover takes charge”, maintains the BdE.
However, although being in the red can prevent further damage, this situation can also cost the owner of the account dearly, since the bank can settle for them an opening commission and interest that will depend on each financial institution. In the event that the account is overdrawn, the bank has the obligation to send a detailed document in which the amounts that have been charged to its client are recorded. However, the Bank of Spain has limited the amount of interest to 2.5 times the legal interest on money, established at 3.25% in 2023. In this sense, this year the overdraft interest cannot exceed 8, 1%.
Therefore, from the BdE they recommend to bank customers that if they do not want their account to be overdrafted, it will be essential that they leave a balance in their current account that is greater than the expected charges for it. However, in the event that you cannot avoid being overdrawn, you must go to your entity and sign a document so that they do not grant it.
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