Never get the idea of Overdrafts boost your money?

Theresonly1

Hello.

I always come across these current accounts offering you overdrafts of £1500+. And people say you can boost your money using overdrafts.

But isn't it just another form of loan? If you have it and you use it..you will eventually need to pay it back don't you?

So technically its not entirely your money forever.!

or am i wrong?

Venusflytrap

It's not your money at all; just a loan to be repaid on the demand.

ODs may be beneficial for very short term borrowing but, as they comprise part of your bank account balance, they can also be a very easy and unconscious way to spend way beyond one's means.