And yet these types of predatory fees are a very American thing (and of course probably many parts of the world I have no experience with) for the comparison below I will focus on US vs Europe.
Most European credit cards debit the full amount at the end of the month. If you don’t have enough money in your bank account, there is no overdraft fee. The overdraft becomes a loan which you pay a couple percent interest. Then eventually if you don’t pay that for long enough and the interest rising a bit more, the bank reaches out to you, and offer to close your count and make a payment plan for you. Otherwise it goes to collections.
The above happened to me when I was a student. I was able to quickly open another bank account for like 2 euros with another bank as well, and eventually paid off my debt.
And yet these types of predatory fees are a very American thing (and of course probably many parts of the world I have no experience with) for the comparison below I will focus on US vs Europe.
Most European credit cards debit the full amount at the end of the month. If you don’t have enough money in your bank account, there is no overdraft fee. The overdraft becomes a loan which you pay a couple percent interest. Then eventually if you don’t pay that for long enough and the interest rising a bit more, the bank reaches out to you, and offer to close your count and make a payment plan for you. Otherwise it goes to collections.
The above happened to me when I was a student. I was able to quickly open another bank account for like 2 euros with another bank as well, and eventually paid off my debt.