Glossary
Overdraft
GeneralWhen you spend more money than is in your bank account. Banks may cover the shortfall but charge overdraft fees or interest. Setting up overdraft protection in advance is cheaper than being hit with surprise charges.
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Balance
The amount of money in an account at a given time, or the amount still owing on a loan or credit card. A positive bank balance means you have funds available; a loan balance means you still owe money.
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Debit
A transaction that takes money directly from your bank account, as opposed to borrowing. When you use a debit card, the money leaves your account immediately rather than being billed to you later.