Credit cards and an arranged overdraft are convenient, but each is a loan that gets expensive once a payment is missed. Your family should know they exist, so they can clear the balance on time or close a card nobody needs any more.
What to write down
- the bank and the type of card or overdraft, for example “credit card with Bank X” or “overdraft on my current account”,
- the credit limit, so your family knows how big the debt could be,
- the payment date, such as “the 15th of each month”.
Note whether the card is paid off automatically by Direct Debit or needs a manual payment. If it's manual and nobody pays, the card will add interest and a late fee after the very first month.
In the app: Banks and Financial Institutions, then Credit Cards.
