Sometimes, not having enough money in our savings or checking account can cause delays in the payment of loan installments and credit card maturities and lead to a negative balance, that is, “being in Red numbers”).
This occurs when a charge is received more incredible than the balance in the checking account and, therefore, there is not enough money to pay it.
If expenses exceed income, you will have a debit balance. That is, their numbers will be in the red.
When this happens, two situations can occur:
- The bank handles the payments. This occurs when we have an account balance with a negative sign, and the bank attends to the prices. It is called being overdrawn. It is the power of the bank to authorize this situation. It is essential to know that this negative balance generates interest that we will have to pay later.
- The bank or savings bank does not attend to the receipts and returns them, which can cause problems, such as the cut-off of the unpaid service (for example, electricity or gas).
- Up to 90 days is considered discovered. Beyond 90 days, it is deemed doubtful credit, and from then on, the bank will be empowered to include the harmful data in the delinquent records.
- If a person is in debt and begins to fall behind in payments, the creditor financial institution will collect the balance owed. There are two instances for debt collection:
- Extrajudicial instance: in the first moments of delay in payments, the creditor will try to agree with the debtor to cancel the balance owed. Sometimes the debt can be refinanced. In the latter case, special care must be taken in the usual contact forms with which the bank approaches its customers. Going to the branch or paying the balance online is always preferable. It is recommended to avoid passing personal data over the phone to avoid scams.
- Judicial instance: when the delay in payments occurs for several months, and we disagree with the creditor, the lender will probably resort to justice to collect the debt. In this instance, the guarantees granted are executed (for example, if the credit is a mortgage, your house will be auctioned, or if the debt has the security of a third party, the court will require the third party to pay for you). If the credit has no guarantees, the court will use other means to satisfy the payment of the debt, such as, for example, ordering part of your salary to be withheld ( garnishment ).