#Overdraft interest charges

[fincrif]

Personal Loan vs. Overdraft: Which Is Better?

Introduction

When it comes to managing unexpected financial needs, individuals often look for credit options like a personal loan or an overdraft facility. Both options provide access to funds but work differently in terms of borrowing limits, interest rates, repayment flexibility, and overall cost. Choosing between a personal loan and an overdraft depends on various factors such as loan tenure, purpose, and financial stability.

This article compares personal loans and overdrafts, helping you determine which is the better option for your financial needs.

What Is a Personal Loan?

A personal loan is an unsecured loan offered by banks and NBFCs (Non-Banking Financial Companies) to individuals for various purposes, such as medical emergencies, home renovation, wedding expenses, or debt consolidation. The borrower repays the loan in fixed monthly EMIs (Equated Monthly Installments) over a predetermined tenure.

Key Features of a Personal Loan

Fixed Loan Amount: Lenders approve a lump sum amount based on eligibility.

Fixed Interest Rate: The interest rate remains unchanged for the tenure (unless it’s a floating rate loan).

Structured Repayment: Borrowers must repay the loan in equal EMIs.

Loan Tenure: Typically ranges from 1 to 5 years.

Eligibility Criteria: Based on income, employment status, and credit score.

Advantages of a Personal Loan

✅ No Collateral Required – Most personal loans are unsecured, meaning you don’t have to pledge assets. ✅ Lump Sum Disbursement – You receive the entire loan amount upfront. ✅ Predictable Repayments – Fixed EMIs make budgeting easier. ✅ Higher Loan Amounts – Personal loans typically offer higher limits than overdrafts. ✅ Improves Credit Score – Timely repayment positively impacts credit history.

Disadvantages of a Personal Loan

❌ Prepayment Penalties – Some lenders charge fees for early repayment. ❌ Longer Approval Process – Requires documentation and credit checks. ❌ Fixed Monthly EMIs – You must pay the same amount every month, even if you have excess funds.

What Is an Overdraft?

An overdraft is a credit facility linked to a savings or current account, allowing you to withdraw more than the available balance, up to a predefined limit. Interest is charged only on the utilized amount for the duration it remains outstanding.

Key Features of an Overdraft

Flexible Borrowing: You can withdraw funds as needed, up to your approved limit.

Interest on Usage: Interest is charged only on the amount you use, not the entire limit.

No Fixed EMI: You can repay any amount at any time, as long as you stay within the overdraft limit.

Linked to an Account: Usually attached to a bank account or a pre-approved credit line.

Advantages of an Overdraft

✅ Pay Interest Only on Utilized Amount – Unlike a personal loan, where interest is charged on the full amount. ✅ Flexible Repayment – No fixed EMIs; you can repay whenever you want. ✅ Instant Access to Funds – No lengthy approval process; funds are readily available. ✅ No Prepayment Penalty – You can clear the outstanding balance anytime without extra charges. ✅ Great for Short-Term Needs – Suitable for temporary cash flow shortages.

Disadvantages of an Overdraft

❌ Lower Credit Limit – The approved overdraft amount is often lower than a personal loan. ❌ Higher Interest Rates – Interest on overdrafts is generally higher compared to personal loans. ❌ Risk of Overuse – Easy access to funds may lead to unnecessary borrowing and debt accumulation. ❌ Requires a Bank Relationship – Overdraft facilities are often offered only to existing account holders.

Personal Loan vs. Overdraft: A Detailed Comparison

FeaturePersonal LoanOverdraftLoan TypeFixed amount, repaid in EMIsCredit limit linked to an accountInterest RateLower, fixed or floatingHigher, varies based on usageRepaymentFixed monthly EMIsFlexible repayment scheduleApproval TimeCan take a few daysInstant for pre-approved accountsLoan Tenure1 to 5 yearsOngoing, no fixed tenurePrepayment ChargesMay applyNo chargesBest ForLong-term expenses (medical, education, home renovation)Short-term cash flow needs

Which Option Is Better for You?

When to Choose a Personal Loan

Opt for a personal loan if:

You need a large lump sum amount for planned expenses like home renovation or education.

You prefer structured repayment with fixed EMIs.

You want a lower interest rate compared to an overdraft.

You are eligible for a longer loan tenure to manage EMIs comfortably.

When to Choose an Overdraft

Choose an overdraft facility if:

You require occasional short-term funds rather than a lump sum.

You want to pay interest only on the used amount.

You need instant access to funds for emergency expenses.

You prefer a flexible repayment schedule without fixed EMIs.

Conclusion: Which Is the Better Option?

Both a personal loan and an overdraft have their own advantages, and the choice depends on your financial needs. If you require a large, one-time loan with predictable repayment, a personal loan is the better option. However, if you need a flexible credit line for short-term financial gaps, an overdraft is a more convenient alternative.

Before choosing, assess your financial situation, repayment capacity, and loan terms carefully to make an informed decision. Always compare lender offers to find the best interest rates and repayment terms that suit your financial goals.

[jain2580]

Overdraft Facility Explained: A Deep Dive into Usage, Benefits, and Interest Rates

An overdraft facility is one of the most useful tools provided by banks, allowing you to withdraw more money than you have in your account, up to a set limit. This facility can help individuals and businesses manage cash flow issues, cover unexpected expenses, and avoid bounced checks. However, understanding how it works, the overdraft facility interest rates, and the associated fees and charges is essential before deciding if it's the right option for you.

In this article, we’ll explore everything you need to know about overdraft facilities—how they work, how to apply, their benefits, and the hidden costs you should watch out for. We’ll also address common queries and explain the differences between overdrafts and personal loans.

What is an overdraft facility?

An overdraft facility allows you to withdraw more money from your current account than your available balance, up to an agreed limit. It’s a type of short-term loan that banks offer to provide extra liquidity when you need it. Unlike a personal loan, which you apply for separately and repay in installments, an overdraft is typically linked to your checking account and is automatically available to use when required.

Key Features of an Overdraft Facility:

Overdraft Limit: The maximum amount the bank allows you to borrow beyond your balance.

Repayment: Overdrafts are usually repayable on demand, or you may pay it off gradually.

Unsecured Overdraft: Most overdraft facilities are unsecured, meaning you don’t need to provide collateral.

Interest Charges: You will be charged interest on the overdrawn amount, which can vary depending on the bank.

Read More: What exactly is an Overdraft Facility, and how to take them easily with the best guidance

How Does the Overdraft Facility Work?

The overdraft facility is linked directly to your checking account. When your account balance goes below zero, the bank allows you to continue withdrawing or spending, as long as you don't exceed your overdraft limit. This can help you avoid declined transactions and overdraft fees.

Example:

If your account balance is ₹1,000 and your overdraft limit is ₹5,000, you can withdraw or make payments totaling up to ₹6,000. However, interest will be charged on the overdrawn balance.

Overdraft Facility Interest Rates Explained

Interest on an overdraft facility is typically charged daily, monthly, or annually, depending on the bank’s terms. The overdraft account interest rates are often higher than those of personal loans, as overdrafts are a short-term borrowing solution. Understanding the interest rates is critical as they can add up quickly, especially if you overuse your overdraft facility.

Factors Affecting Overdraft Interest Rates:

Bank Policy: Different banks have different interest rates for overdraft facilities.

Amount Overdrawn: The more you overdraw, the more interest you will be charged.

Duration: If the overdraft is not repaid quickly, interest charges will accumulate.

It’s essential to read the bank’s terms and conditions regarding overdraft interest rates and fees before accepting an overdraft facility.

Benefits of an Overdraft Facility

The overdraft facility offers several advantages, making it a useful tool for managing finances in times of need.

Top Benefits of Overdraft Facilities:

Instant Access to Funds: Overdrafts provide quick access to funds without needing to apply for a loan.

Flexibility: You can borrow exactly what you need, when you need it, up to your limit.

Overdraft Protection: In case of an emergency or unexpected expense, overdraft protection ensures you don’t miss out on essential payments.

No Collateral Required: Most overdrafts are unsecured, meaning you don’t need to pledge assets like property.

Helps Avoid Bounced Cheques: Overdrafts can help cover checks and prevent bounced payments, which could negatively affect your credit score.

How to Apply for an Overdraft Facility?

Applying for an overdraft facility is usually straightforward, but it depends on your bank’s requirements. Generally, you need to apply in person or online, and the bank will review your creditworthiness and financial history before granting approval.

Steps to Apply for an Overdraft:

Check Your Eligibility: Ensure you meet the minimum criteria for applying for an overdraft, such as age, income, and credit score.

Submit Documents: Provide necessary documents, including identification proof, address proof, and bank statements.

Complete the Application: Fill out the online or in-person application form.

Approval and Limit Setting: The bank will set an overdraft limit based on your financial situation.

Overdraft vs. Personal Loan: Which One is Better?

While both overdraft facilities and personal loans provide access to extra funds, they differ in terms of structure, repayment terms, and interest rates.

Differences Between Overdraft Facility and Personal Loan:

Repayment: Overdrafts are repaid as soon as the overdraft is used, while personal loans are paid in fixed installments.

Interest Rates: Overdrafts usually have higher interest rates compared to personal loans.

Limit: Personal loans have a fixed amount borrowed upfront, while overdrafts allow flexible borrowing up to the limit.

Approval Process: Overdraft facilities are typically easier to obtain and are linked to your current account.

Check out: Our best Overdraft facility and Personal loans with only Investkraft

Overdraft Fees and Penalties

While overdraft facilities are convenient, they often come with overdraft fees and penalties for non-repayment or exceeding the overdraft limit.

Common Fees:

Overdraft Charges: A fee is charged each time you overdraw your account.

Non-Repayment Penalties: If you don’t repay the overdraft within the agreed period, additional fees may be applied.

Exceeding the Limit: You may incur extra charges if you exceed your overdraft limit.

5 FAQs About Overdraft Facility

1. What is an overdraft limit?

The overdraft limit is the maximum amount you can overdraw from your bank account. It’s determined by the bank based on your financial situation and creditworthiness.

2. How are overdraft interest rates calculated?

Interest on an overdraft is calculated on the overdrawn balance and typically charged on a daily or monthly basis. Rates may vary by bank and can be higher than other borrowing options.

3. Can I apply for an overdraft if I have bad credit?

It’s possible to apply for an overdraft with a poor credit history, but approval will depend on the bank’s policies. Some banks may offer unsecured overdraft facilities even to individuals with lower credit scores, although the interest rates may be higher.

4. What happens if I don’t repay the overdraft?

Failure to repay the overdraft could result in additional fees, penalties, and negative impacts on your credit score. In some cases, the bank may take legal action to recover the amount.

5. What is overdraft protection, and how does it work?

Overdraft protection is a service provided by banks to prevent transactions from being declined when you don’t have enough funds in your account. It may involve linking your savings account or credit card to your checking account, so the bank can cover the shortfall.

Conclusion

An overdraft facility is a helpful tool for managing cash flow and avoiding missed payments, but it’s important to fully understand how it works and the costs associated with it. By understanding the overdraft facility interest rates, fees, and repayment terms, you can make an informed decision on whether it’s the right financial solution for your needs. Always ensure that you’re aware of the overdraft facility eligibility requirements and apply for the facility wisely to avoid unexpected financial stress.

[thelorelounge]

10 Reasons to Change Your Banker to Leprechauns

because regular banks are boring and leprechauns are petty, magical, and possibly armed

1. They're Legally Required by Mythology to Have Gold. Unlike your current bank, which legally requires you to have nothing but overdraft fees.

2. Contracts Are Fun and Deadly. Sure, their financial agreements might be sealed with blood and iron ink, but at least you know they’re serious. (Also, loopholes? Deliciously abundant. If you survive.)

3. Customer Service With Vengeance. Your leprechaun banker will personally hex anyone who tries to scam you. Your old bank couldn't even block that sketchy Amazon charge.

4. They Offer Magical Investment Opportunities. Stocks? Bonds? Boring. Leprechauns invest in dragon hoards, cursed artifacts, and stolen royal jewels. Diversify your portfolio with fear and flair.

5. Hidden Pots of Gold > Hidden Fees. Your "savings account" is literally a rainbow away. (Locating it is part of your spiritual growth arc.)

6. No Business Hours, Only Vibes. Need a midnight withdrawal? Find the right hollow tree and chant your mother's maiden name backwards. Way more fun than arguing with an ATM.

7. They Hold Grudges on Your Behalf. Karen from Accounting stole your stapler in 2019? Your leprechaun banker remembers — and she’s about to have a Very Interesting Tuesday.

8. Free Curses With Every Transaction. Need petty revenge as a side hustle? Deposit $50, curse your enemies for free. Better rewards program than any credit card.

9. Every Meeting Includes Free Drinks. They will try to get you drunk and trick you into terrible deals. But honestly, when was the last time your bank offered anything besides a sad lollipop?

10. They Respect Chaos. Standard banks want "stability" and "responsibility." Leprechauns? They want you to flirt with disaster, high-five fate, and look good doing it.

Switch to leprechauns. Your money might spontaneously combust or turn into frogs, but at least you'll have a hell of a lot more fun watching it happen.

[gloryundimmed]

Okay but for that hc meme if people haven’t sent these ones in already:

11. For Kai

29. For Luka

15. For James.

A Closer Look

11. phone home screen. (Kai)

Sooo this sort of depends from verse to verse. Kai’s work phone (burner phone) would have default settings because he can’t have any personal information on it. On his personal phone, his lock screen would be a picture of his car because it’s his pride and joy, but his home screen would likely be of whoever he was interested in at the time. For example, in Kai and Eito’s normal AU, it would be a picture of them on a date together or on their infamous Hawaii trip (Aika and Luka photobombing in the background??). If he wasn’t interested in anybody, I think it might be of a sexy celebrity, haha.

15. bookcase. (James)

James would have a ton of things on his bookcase, and has several bookcases in his office and dozens more in the Van Doren personal library. For practical purposes, I’m just going to go with one in his home office. Since it would be in a place of work, he’d have tons of books on business, leadership, and the theories of economics from top minds around the world and in several different languages since James is a polyglot. Besides books, he’d have a picture of him and his college buddies at their graduation ceremony, a bust of Machiavelli, and a bronze globe statue or something of the like.

29. five most recent received text messages. (Luka)

[Text from Guy Friend]: Dude you’ve gotta meet us at the club tonight, it’s poppin’ up in here

[Text from His Dealer]: Yo I got a new strain in, hit me up if u want some

[Text from One Night Stand]: I had fun last night, but we should just be friends

[Text from Graphic Design Client]: I like the overall look, but could you tone down the color palette?

[Text from Bank]: This is an overdraft charge notice. Deposit money into your account to avoid further charges.

[clamjams]

if someone could send me anything towards the amount of £35/$47/€41 this pride month i would be forever grateful 🙏

i am too unwell to work and my family aren’t able to support me at this time. £35 is what i need to get out of unarranged overdraft so my payments won’t be declined and i won’t be charged interest. thank you <3

[unpluggedfinancial]

Your Bank Hates You—Here’s Why Bitcoin Doesn’t

Banks have spent centuries perfecting the art of making money off their customers while keeping them financially dependent. They wrap themselves in an image of trust and stability, but the truth is simple: banks exist to extract as much profit as possible from you while giving as little as possible in return. And most people never question it.

Bitcoin, on the other hand, doesn’t need you to trust it. It operates on pure mathematics, transparency, and a fixed supply that no institution can manipulate. It’s time to pull back the curtain on the traditional banking system and understand why Bitcoin flips the script.

The Big Lie: Your Money Isn’t Really Yours

When you deposit money in a bank, you assume it’s still your money. In reality, the moment it enters their system, it becomes theirs. You are nothing more than an unsecured creditor—your money is a liability on their books, and they can use it however they see fit. They lend it out, invest it in risky ventures, and rake in billions in profits, all while giving you a pathetic fraction of a percent in interest.

And if you ever try to withdraw a large sum? Suddenly, the bank wants to ask questions. Where did you get this money? Why do you need it? They may even limit how much you can take out at once. It’s not about security—it’s about control.

The Racket: How Fractional Reserve Banking Works

One of the biggest scams ever legalized is fractional reserve banking. This system allows banks to hold only a small fraction of customer deposits while lending out the rest. In the U.S., banks used to be required to keep about 10% in reserve. Today? That requirement is zero. They can lend out nearly all of your deposited money, creating money out of thin air.

This system fuels inflation, artificially expands credit, and increases systemic risk. And guess who pays the price when it collapses? Not the banks—they get bailed out. You, the customer, are left with devalued savings, rising costs, and financial instability.

Bitcoin doesn’t play that game. There is no fractional reserve system. You own what you hold, and no one can lend it out behind your back.

The Bank Fees & Interest Rate Scam

Banks are masters of the nickel-and-dime game:

Overdraft fees punish you for not having money by taking more of your money.

Loan interest rates skyrocket while banks borrow from the Federal Reserve at near-zero rates.

ATM fees charge you for accessing your own money.

Wire transfer fees? A tax on moving your money, even though the process is mostly automated.

Meanwhile, inflation erodes your savings, and banks laugh all the way to... well, the bank.

Bitcoin? No middlemen. No arbitrary fees. No interest rates designed to squeeze you dry. Just peer-to-peer transactions, secured by a decentralized network.

Enter Bitcoin: Opting Out of the Madness

Bitcoin offers something revolutionary:

A fixed supply of 21 million coins—no central bank can print more.

Self-custody—you hold your own money, no permissions needed.

Instant transactions with minimal fees, no matter where you are in the world.

A global, decentralized network that no government or institution can manipulate.

Unlike banks, Bitcoin doesn’t require you to trust it. You can verify every transaction, every supply issuance, every rule of the system. There are no hidden fees, no fine print, no “policy changes” that suddenly take away your access.

The Transparency Factor: Bitcoin vs. Banks

Banks operate in secrecy. They loan out your deposits, make high-risk bets, and when things go wrong, they change the rules or beg for a bailout. The 2008 financial crisis showed us exactly how fragile and corrupt the system really is.

Bitcoin, on the other hand, runs on a public ledger. Every transaction is verifiable. No insider deals, no backroom manipulations, no hidden schemes. You don’t have to take anyone’s word for it—the system is open-source, and anyone can audit it.

The Takeaway: Banks Need You, But You Don’t Need Banks

The traditional banking system thrives on ignorance. It wants you to remain dependent, obedient, and financially illiterate. But Bitcoin offers a way out.

With Bitcoin, you are your own bank. You decide when and how to access your wealth. You don’t need permission, you don’t need intermediaries, and you certainly don’t need to beg for access to what’s already yours.

Your bank hopes you never wake up to this reality.

Bitcoin is the wake-up call.

Tick tock, next block.

Take Action Towards Financial Independence

If this article has sparked your interest in the transformative potential of Bitcoin, there’s so much more to explore! Dive deeper into the world of financial independence and revolutionize your understanding of money by following my blog and subscribing to my YouTube channel.

🌐 Blog: Unplugged Financial Blog Stay updated with insightful articles, detailed analyses, and practical advice on navigating the evolving financial landscape. Learn about the history of money, the flaws in our current financial systems, and how Bitcoin can offer a path to a more secure and independent financial future.

📺 YouTube Channel: Unplugged Financial Subscribe to our YouTube channel for engaging video content that breaks down complex financial topics into easy-to-understand segments. From in-depth discussions on monetary policies to the latest trends in cryptocurrency, our videos will equip you with the knowledge you need to make informed financial decisions.

👍 Like, subscribe, and hit the notification bell to stay updated with our latest content. Whether you’re a seasoned investor, a curious newcomer, or someone concerned about the future of your financial health, our community is here to support you on your journey to financial independence.

📚 Get the Book: The Day The Earth Stood Still 2.0 For those who want to take an even deeper dive, my book offers a transformative look at the financial revolution we’re living through. The Day The Earth Stood Still 2.0 explores the philosophy, history, and future of money, all while challenging the status quo and inspiring action toward true financial independence.

Support the Cause

If you enjoyed what you read and believe in the mission of spreading awareness about Bitcoin, I would greatly appreciate your support. Every little bit helps keep the content going and allows me to continue educating others about the future of finance.

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bc1qpn98s4gtlvy686jne0sr8ccvfaxz646kk2tl8lu38zz4dvyyvflqgddylk

[alphagodith]

it is some primo bullshit that banks give you mere pennies of interest but charge you whole ass dollars just for using your own fucking money(and no i'm not talking about overdrafts where you are using credit, i'm talking about minimum daily balances and withdrawal/transaction fees)!

no wonder the wealth gap is so insane when poor people are literally charged MORE for BEING poor!

[assignmentimprobable]

EDIT: 9/23/24

I’m struggling. I’ve put in 26 job applications in the last month (40 in the last 9 months) to start using my law degree and the process is slow moving. My health insurance expired and I somehow ended up with a herniated disc. I cant afford food without paying my credit card down and I woke up to an overdrafted account the other day. I need help. Things are dire. I get that we’re all passing the same 20$ around, so this way I promise you get something for your money. Please help me out. If not with commissioning me, then at least with reblogging this to get some traction.

TLDR: STEVIE'S EMERGENCY COMMISSIONS!!!

Here you'll find my rates, along with examples of my work for each category. I'm putting some stuff below so you can have a looksie of my catalogue... maybe stoke some interest,,,

Ground Rules:

I DO

OCs

Canon Characters

Ship art

Your faves, in the skimpiest outfits you can think of

I DO NOT

Underage

Pedophilia

Anthro - ie. I'm not skilled enough to feel comfortable charging people money for it

Explicit NSFW (I will do 'saucy' or spicy-tinted stuff)

Generally,

All prices are USD

For my sake and also yours: I don't start work until the commission is paid in full.

I'll be in constant touch with some progress shots depending on the length of time it takes to finish.

"Experimental" means that I fuck with the color palette and composition of what you've commissioned me for. It's my discretion and I take liberties using all of my tools to try something new. This is as opposed to a more straightforward palette, or even one you've requested me to use with the complimentary simple background I give.

Additional characters cost additional money! It’s on the rate sheet itself at the bottom.

You do NOT have my permission to use my work for NFTs or AI. Ever.

I use paypal invoices exclusively, but if you know another method- let me know!

Send all inquiries to theguywhocantdrive@gmail.com, or if you know me personally: Just DM me on discord. We can talk poses and logistics there.

[beardedmrbean]

The Consumer Financial Protection Bureau on Thursday announced the final version of a rule limiting banks’ ability to charge overdraft fees. It says the rule will save American consumers $5 billion annually.

The regulator said that banks could opt to charge $5 for overdrafts — a steep drop from the average fee of around $35 per transaction — or limit the fee to an amount that covers the lenders’ costs, or charge any fee while disclosing the interest rate of the loan.

“For far too long, the largest banks have exploited a legal loophole that has drained billions of dollars from Americans’ deposit accounts,” CFPB Director Rohit Chopra said in a statement. “The CFPB is cracking down on these excessive junk fees and requiring big banks to come clean about the interest rate they’re charging on overdraft loans.”

While overdraft fees have been a lucrative line item for the industry, generating $280 billion in revenue since 2000 according to the CFPB, banks’ revenue from the service has been on the decline. That’s because lenders including JPMorgan Chase and Bank of America have either reduced the fees or limited the types of transactions that trigger them, while some banks dropped the fee altogether.

The CFPB rule applies to banks and credit unions with at least $10 billion in assets.

The effort, part of a flurry of activity from the CFPB in the waning days of the Biden administration, faces stiff opposition from U.S. banking groups that have successfully stymied other efforts from the regulator. For instance, a rule capping credit card late fees at $8 per incident that was set to take effect in May has been held up in federal court.

The CFPB said that its overdraft rule will take effect Oct. 1, 2025, though its ultimate fate is unclear.

Even before the election victory of Donald Trump last month, the fate of the overdraft rule would’ve been murky, thanks to industry pushback. But Trump is expected to install a new CFPB head next month that is unlikely to support Biden-era efforts to rein in banking activity.

Bank lobbying groups have argued that the overdraft rule, first proposed in January as part of Biden’s war on junk fees, would reduce access to overdraft services and could send customers to worse alternatives like payday loans.

The Consumer Bankers Association said Thursday it was “exploring all options” to push back against the rule.

[dreaminginthedeepsouth]

Pat Bagley, Salt Lake Tribune

* * * *

LETTERS FROM AN AMERICAN

January 19, 2024

HEATHER COX RICHARDSON

JAN 19, 2024

President Joe Biden today signed the continuing resolution that will keep the government operating into March.

Meanwhile, the stock market roared as two of the three major indexes hit new record highs. The S&P 500, which measures the value of 500 of the largest companies in the country, and the Dow Jones Industrial Average, which does the same for 30 companies considered to be industry leaders, both rose to all-time highs. The third major index, the Nasdaq Composite, which is weighted toward technology stocks, did not hit a record high, although its 1.7% jump was higher than that of the S&P 500 (1.2%) or the Dow (1.1%).

Investors appear to be buoyed by the fact the rate of inflation has come down in the U.S. and by news that consumers are feeling better about the economy. A report out today by Goldman Sachs Economics Research noted that consumer spending is strong and predicted that “job gains, positive real wage growth, will lead to around 3% real disposable income growth” and that “household balance sheets have strengthened.” It also noted that “[t]he US has led the way on disinflation,” and it predicted further drops in 2024. That will likely mean the sort of interest rate cuts the stock market likes. 

The economic policies of the Biden-Harris administration have also benefited workers. The unemployment rate has been under 4% for more than two years, and wages have risen higher than inflation in that same period. Production is up as well, to 4.9% in the third quarter of 2023 (the U.S. growth rate under Trump even before the pandemic was 2.5%). 

The administration has worked to end some of the most obvious financial inequities in the U.S., such as the unexpected “junk fees” tacked on to airline or concert tickets, or to car or apartment rentals. On Wednesday the Consumer Financial Protection Bureau announced a proposed rule for bank overdraft fees at banks that have more than $10 billion in assets. 

While banks now can charge what they wish if a customer’s balance falls below zero, the proposed rule would allow them to charge no more than what it cost them to break even on providing overdraft services or, alternatively, an industry-wide fee that reflects the amount it costs to deal with overdrafts: $3, $6, $7, or $14. The amount will be established after a public hearing period.

Ken Sweet and Cora Lewis of the Associated Press note that while the average overdraft is $26.61, some banks charge as much as $39 per overdraft. The CFPB estimates that in the past 20 years, banks have collected more than $280 billion in overdraft fees. (One bank’s chief executive officer named his boat “Overdraft.”) Over the past two years, pressure has made banks cut back on their fees and they now take in about $8 billion a year from those overdraft fees. 

Bankers say regulation is unnecessary and will force them to end the overdraft service, pushing people out of the banking system. Biden said that the rule would save U.S. families $3.5 billion annually. 

The administration has also addressed the student loan crisis by reexamining the loan histories of student borrowers. An NPR investigation led by Cory Turner revealed that banks mismanaged loans, denying borrowers the terms under which they had signed on to them. Rather than honoring the government’s promise that so long as a borrower paid what the government thought was reasonable on a loan for 20 or 25 years (undergrad or graduate), the debt would be forgiven, banks urged borrowers to put the loan into “forbearance,” under which payments paused but the debt continued to accrue interest, making the amount balloon. 

The Education Department has been reexamining all those old loans to find this sort of mismanagement as well as other problems, like borrowers not getting credit for payments to count toward their 20 years of payments, or borrowers who chose public service not receiving the debt relief they were promised.

Today the administration announced $4.9 billion of student debt cancellation for almost 74,000 borrowers. That brings the total of borrowers whose debt has been canceled to 3.7 million Americans, with an erasure of $136.6 billion. Nearly 30,000 of today’s relieved borrowers had been in repayment for at least 20 years but never got the relief they should have; nearly 44,000 had earned debt forgiveness after 10 years of public service as teachers, nurses, and firefighters.

Biden has been traveling the country recently, touting how the economic policies of the Biden-Harris administration have benefited ordinary Americans. In Emmaus, Pennsylvania, last Friday he visited a bicycle shop, a running shoe store, and a coffee shop to emphasize how small businesses are booming under his administration: in the three years since he took office, there have been 16 million applications to start new businesses, the highest number on record.

Biden was in Raleigh, North Carolina, yesterday to announce another $82 million in support for broadband access, bringing the total of government infrastructure funding in North Carolina during the Biden administration to $3 billion.  

On social media, the administration compared its investments in the American people to those of President Franklin Delano Roosevelt’s New Deal in the 1930s, which were enormously popular. 

They were popular, that is, until those opposed to business regulation convinced white voters that the government’s protection of civil rights, which came along with its protection of ordinary Americans through regulation of business, provision of a basic social safety net, and promotion of infrastructure, meant redistribution of white tax dollars to undeserving Black people.

The same effort to make sure that ordinary Americans don’t work together to restore basic fairness in the economy and rights in society is visible now in the attempt to attribute a recent Boeing airplane malfunction, in which a door panel blew off mid-flight, to diversity, equity, and inclusion (DEI) efforts. Tesnim Zekeria at Popular Information yesterday chronicled how that accusation spread across the right-wing ecosystem and onto the Fox News Channel, where Fox Business host Sean Duffy warned: “This is a dangerous business when you’re focused on DEI and maybe less focused on engineering and safety.” 

As Zekeria explains, “this narrative has no basis in fact.” Neither Boeing nor its supplier, Spirit AeroSystems, is particularly diverse, either at the workforce level, where minorities make up 35% of Boeing employees and 26% of those at Spirit AeroSystems, or on the corporate ladder, where the overwhelming majority of executives are white men. Zekeria notes that right-wing media figures have also erroneously blamed last year’s train derailment in Ohio and the collapse of the Silicon Valley Bank on DEI initiatives.

The real culprit at Boeing, Zekeria suggests, was the weakened regulations on Boeing and Spirit thanks to more than $65 million in lobbying efforts.

Perhaps an even more transparent attempt to keep ordinary Americans from working together is the attacks former Fox News Channel personality Tucker Carlson has launched against Vice President Kamala Harris, calling her “a member of the new master race” who “must be shown maximum respect at all times, no matter what she says or does.” Philip Bump of the Washington Post noted yesterday that this construction suggests that Harris, who identifies as both Black and Indian, represents all nonwhite Americans as a united force opposed to white Americans. 

But Harris’s actions actually represent something else altogether. She has crossed the country since June 2022, when the Supreme Court overturned the 1973 Roe v. Wade decision that recognized the constitutional right to abortion, talking about the right of all Americans to bodily autonomy. That the Supreme Court felt able to take away a constitutional right has worried many Americans about what they might do next, and people all over the country have been coming together in opposition to the small minority that appears to have taken over the levers of our democracy. 

Driving the wedge of racism into that majority coalition seems to be a desperate attempt to stop ordinary Americans from taking back control of the country.  

LETTERS FROM AN AMERICAN

HEATHER COX RICHARDSON

[snudibranchs]

my stupid gay little bank when they give me an overdraft fee on a random interest charge they decided to pull directly from their fucking anus that i would have no way of knowing about

[glamfellens]

just putting a feeler out to gauge interest in people getting portrait commissions from me if they can provide a receipt of donating to one of the gfms i shared in the post i made earlier . im thinking £10 minimum and u get a sketch and some flat colour i cant donate anymore im £200 into an overdraft that im getting charged for daily so this is the only way i can think of that will help?? idk. pls respond to this or whatever

[shefitaf-2]

What Is Chime and Why You Should Join?

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[nargis04shaikh]

Unlock Financial Flexibility with Overdraft Limit on Property 🏠💸

Overdraft against property is a powerful financial solution that allows individuals and businesses to access funds as needed by leveraging their property as collateral. If you're looking for flexible financing with no rigid repayment schedules, this option could be ideal for you. Let’s explore everything you need to know about overdraft limits on property in a simple and easy-to-read format.

What is an Overdraft Limit on Property? 🤔

An overdraft limit on property is a credit facility where you pledge your property to secure a pre-approved credit limit. Unlike traditional loans where you receive a fixed amount upfront, an overdraft provides you with the flexibility to withdraw funds as required. The best part? You pay interest only on the amount you utilize, not the entire approved limit. This feature makes it a highly convenient financing solution for recurring or unpredictable expenses.

How Does It Work? 💼

Pledge Your Property: Use residential, commercial, or industrial property as collateral 🏠🏢.

Approval of Credit Limit: The lender evaluates your property’s value and repayment ability to set a credit limit 🏦.

Withdraw as Needed: Access funds up to the sanctioned limit whenever required 💰.

Interest on Usage: Pay interest only on the amount you utilize, saving costs 💡.

Flexible Repayments: Repay the utilized amount at your convenience to reduce your interest burden 💳.

This facility acts as an extension of a loan against property, giving you more control over your finances. 🔑

Benefits of Overdraft Limit on Property 🌟

Pay Interest Only on Withdrawals: You are charged interest only on the funds you use, unlike a term loan 💵.

Flexibility in Withdrawals: Access money as and when required without multiple loan applications 💳.

Flexible Repayments: No fixed EMIs – repay based on your cash flow 💸.

Lower Interest Rates: Compared to unsecured loans, the loan against property interest rate is much lower 💰.

Versatile Usage: Use the funds for business growth, personal needs, medical emergencies, or education expenses 🎓🏥.

Loan Against Property vs. Overdraft Limit: What’s the Difference? ⚖️

While both options involve pledging property, they cater to different financial needs:

Loan Against Property: A lump sum loan amount that must be repaid in fixed monthly EMIs 📅.

Overdraft Limit: A pre-approved credit limit where interest is charged only on the amount utilized 📈.

If you are unsure which option suits your needs, use a loan against property EMI calculator to compare repayment schedules and interest costs 📊.

How to Apply for an Overdraft Limit on Property 📑

Follow these steps to apply for a loan against property and secure an overdraft facility:

Check Eligibility: Banks assess your property’s market value, income, and repayment ability 🏡💼.

Prepare Documents: Submit property documents, income proof, and identification 📋.

Approval Process: Lenders evaluate your eligibility and determine the overdraft limit ✅.

Access Funds: Once approved, you can withdraw funds up to the sanctioned limit whenever needed 💳.

To get the best deal, compare lenders and choose one offering a competitive loan against property interest rate with favorable terms 🔍.

When is Overdraft Limit on Property a Smart Choice? 🤔

Consider this financing option if:

You need funds regularly, such as for business expenses 💼.

You prefer flexibility in repayments instead of fixed EMIs 🔄.

You are confident in managing and repaying the overdraft responsibly 💪.

Key Points to Remember 📝

Property Value: The overdraft limit is based on the market value of your property 🏠.

Interest Rates: Compare lenders to find the lowest loan against property interest rate 💸.

Withdraw Wisely: Since interest applies only on usage, avoid withdrawing unnecessary amounts 💡.

Timely Repayments: Repaying early reduces the interest burden and keeps your property secure 🔒.

Conclusion 🎯

An Overdraft limit on property offers unmatched financial flexibility for individuals and businesses. By leveraging your property, you can secure a pre-approved credit limit and pay interest only on the amount you use. Whether for personal needs, emergencies, or business growth, this facility allows you to manage your finances efficiently without the stress of fixed EMIs. 💼💵

[classicquid]

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Following the aforementioned requirements will grant you complete flexibility to obtain short term loans UK direct lender ranging from £100 to £1000 without the need to provide your insurance as security during the assurance period. In a maximum of two months, which usually ends on the eve of your next payday, the credit amount must be returned to the bank.

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According to the depiction above, salaried people are typically offered short term loans direct lenders in between their two consecutive paychecks. In this way, people with terrible credit factors—defaults, delinquent payments, foreclosure, missing payments, CCJs, IVAs, or debt—are fully taken into account for taking use of these advances without any restrictions. They can also make money by covering your child's tuition or other educational expenses, a remarkable bank overdraft, unexpected medical or restorative costs, MasterCard charges, unpaid house bills, unplanned auto repairs, and even maintenance costs.

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[edisacornball]

We're facing a bit of a problem right now. We managed to get shelter after a few days of not having shelter. But when we paid for the hotel, our bank was being slightly screwy and now it looks like we're overdrawn by about $200. If we can get back in the green before the end of the day, we won't get charged an overdraft fee on top of everything. If we get the overdraft fee though, it's just going to get harder and harder with every day to fix it. 

So my husband has come up with a really cool idea in order to try and maybe offer something that my Other Side readers might be interested in to make it worth y'all's time if you can help us out. He's a really awesome musician, and he said that if we can get this taken care of today, he'll be able to focus on something other than trying to fix this, and he'll use that time to write a song to go with The Other Side. 

Music has been such a big part of Other Side what with it being named based on a song and me constantly referencing songs from the playlist with the chapter titles. So. This is honestly so amazing of an offer even to me. Hell, if he manages to actually write a song, I might be able to tweak some of my final points in the outline to make the song an actual plot point of the finale. Maybe having the Eds singing in a duet or something, who knows. 

If you all could help us make this happen, it would seriously mean the world to me. I mean, not only would it mean making my husband a part of this project that's so near and dear to my heart, but it would also mean that we don't have to keep scrambling to try and figure out a way to fix this. It's looking like I've got a potential job training lined up for Monday, and things could really start turning around for us from there, but it will get so much harder to pull that off if our bank account is shut down, because that means no shelter, no bus fare, no food.

Anyway, thanks so much for reading this far. I've got a linked post on my page with all my various handles for the different payment platforms. If you could all maybe share this around, it would mean a lot. And if there's anything you'd love to see in a song, feel free to drop it in a reblog, and I'll make sure my husband sees it!