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Banking
Overdraft
Your bank lets you spend more than you actually have, up to a limit they've set. You're borrowing from the bank to cover the overage. Interest is charged daily on whatever amount you're over. It's a trap if you use it every single month — means you're living beyond your means.
Usage Examples
"Zanele has a R12,000 overdraft on her FNB account for emergencies. She used R3,000 one month and paid interest on just that R3,000, not the whole limit."
"Sipho's overdraft became a habit. He'd dip into it, pay it back, dip in again. After two years of this, he realised he was haemorrhaging money to interest and locked himself out of the facility."
"Your overdraft interest compounds daily, so a small overage can grow into something stupid real fast. Keep it for emergencies only."