ENGLISH
REFERENCE

overdraft

n.
B2 Upper Intermediate US //ˈoʊvɝˌdɹæft// UK //ˈəʊvədɹˌɑːft// over·draft

n. a situation where you spend more money than you have in your bank account. You usually pay a fee for this and must pay back the extra amount later.

n. a state of having spent more money than is available in a bank account. Often refers to a prearranged facility allowing a customer to withdraw funds beyond their balance up to a specific limit.


SIMPLE

I accidentally went into an overdraft by paying for groceries.

CONTEXTUAL

The bank charged a high fee for the overdraft, so he had to pay it back immediately to avoid further charges.

COMPLEX

While a temporary overdraft can provide necessary liquidity during a cash flow crisis, it is generally advisable to avoid this practice as it often results in significant interest costs.

Origin

From over- + draft.

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