Around ten percent of all adults regularly use their overdraft facility, although it is one of the most expensive loans of all. These measures help to permanently get out of debt.
The account is overdrawn quickly. Balancing it out often takes much longer. Some people even make a living out of the minus. And then it becomes expensive. Because the use of the so-called overdraft or overdraft facility allows banks and savings banks to pay well - with interest.
Each bank sets its own interest rate on overdrafts. The range is currently between 4 and 14 percent, with the average interest rate according to Stiftung Warentest being around 10 percent. This makes the overdraft facility one of the most expensive loans of all and should be used as little as possible. So how do I get out of the red fast?
Step 1: Get an overview
Anyone who regularly gets into the overdraft facility does not get by with the available money. It is therefore important to first recognize the reason for this: Is it due to my consumption? Can I change something? This creates the basis for all further measures.
The AFG debt counseling advises to first take stock. There is already a lot to discover on the basis of account statements. For example, subscriptions that are no longer used. The classic here is the gym. Or superfluous insurance policies that may even overlap in terms of content. Financial obligations with other banks, such as consumer loans, are also noticeable.
Step 2: Accept the challenge
Coping with the situation all by yourself can be difficult in many cases. The AFG debt counseling service therefore encourages those affected to seek advice and support at any time. Experienced debt counselors recognize quickly and objectively which adjustment screws can be turned and which options for action actually exist.
"Don't wait until everything has gone down the drain, come as early as possible," says consultant Mark Schmidt-Medvedev. In every municipality there are open advisory services that can be used free of charge. Contact points are, for example, consumer centers or certified debt counseling centers.
Step 3: Keep a household book
Anke Behn from the consumer advice center in Bremen is happy to advise debtors to keep a household book. There you write down all expenses for a certain time. On the one hand, the essential and everyday things such as weekly shopping, fuel costs, rent, electricity deduction. On the other hand, the many small expenses that quickly add up: the coffee to go, impulse purchases in the premium shop instead of in the discounter or the lunch menu during the lunch break. The point is not to be ashamed of such expenses, but to create transparency.
Step 4: Identify potential savings
"The aha effects come with the budget book," says Schmidt-Medvedev. This makes it clear which expenses are absolute luxuries in the current situation. Documented in black and white and together with a neutral person you can see the possibilities more clearly.
According to Schmidt-Medvedev, this is an important step, especially for people who earn well and still need the overdraft facility regularly. Because they would most likely think: "The money is there, so I won't cancel subscription XY, even though I don't actually use it anymore."
Step 5: Take concrete action
The final step is to change your own behavior. What that means in concrete terms depends on the individual situation. This can be, for example, cutting back on luxury spending for a time or taking food from home for the lunch break. However, this can also mean switching to a cheaper electricity or gas provider in view of the sharp rise in energy prices.
If, on the other hand, it is foreseeable that you will not be able to get out of the overdraft facility within a few months, other measures are more suitable. In these cases, you should talk to the bank and make a so-called repatriation agreement, says financial expert Behn. This replaces the expensive overdraft facility with a cheaper loan – such as an installment loan.
"But then it's important that you don't immediately use the overdraft facility again," says financial expert Behn. Here it is important to adhere to the previously identified savings potential with enough self-discipline in order to start a really debt-free life in the long term.
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