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As a short-term
measure bank overdrafts are a simple way to borrow money.
Before taking out an overdraft, check your bank’s Annual
Percentage Rate (APR) as it can be expensive.
Agree your overdraft with your bank. They will often charge
you more if you overdraw without making arrangements first.
Your bank may require that you to meet certain conditions
when you take out an overdraft. These should be make these
clear at the time.
Credit
cards are
another easy and flexible way to borrow small sums of
money. However take care or it could prove tobe an expensive
way of borrowing money. Ensure you leave yourself enough
credit limit to accommodate your regular spending
Make sure you find out what you are paying interest on.
Many banks will charge you on your entire month’s balance
if you don’t pay in full.
Make sure you pay at least the minimum balance each month.
If not your bank may charge a late payment fee.
Don’t just pay the minimum balance each month. Spending
up to your limit only paying the minimum amount could
take you years to clear the balance.
If you do decide to borrow on credit cards find a card
offering a low interest rate. Be aware of cards that start
on a low interest rate (or even 0%) to get your custom
only to apply a higher rate after a year or six month
period.
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Online
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