Permanently in overdraft? How to escape the high interest
An overdraft facility is convenient but expensive, and anyone permanently in the red pays dearly. But you are not at its mercy: with prolonged overdraft, the bank must advise you, and restructuring is often much cheaper.
Reach your next steps and the matching ready-made texts in just a few minutes, free of charge:
Advice / debt restructuring →Your chances of getting your money back
What you should do now
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1. Look at the costs
How high is your overdraft interest, and how much do you pay for it in a year?
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2. Demand advice
With permanent use, demand the advice about alternatives that the bank owes you (§ 504a BGB).
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3. Check restructuring
Compare an installment loan; it is usually considerably cheaper than the overdraft.
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4. Debt counseling
For lasting money problems, free debt counseling can help.
Frequently asked questions
Is there an upper limit for overdraft interest?
There is no fixed statutory maximum; overdraft interest is, however, often very high. Only in extreme cases can interest be immorally excessive. More important in practice: with permanent, substantial use, the bank must point out cheaper alternatives to you (§ 504a BGB).
How do I get out of the expensive overdraft?
Usually through restructuring into a normal installment loan with considerably lower interest. Have the bank advise you on alternatives; it is obliged to do so with prolonged overdraft. For lasting payment difficulties, free debt counseling supports you.
Take action now
We put together the ready-made texts and the right places to contact for you.
General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.