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An overdraft is a financial service that allows you to withdraw more money from your bank account than you have available. It is a form of short-term borrowing, typically with high-interest rates, used to cover expenses when your account balance reaches zero. Overdrafts can be convenient for managing cash flow or unexpected expenses, but they can also lead to high fees if not managed carefully. It's important to understand the terms and fees associated with overdrafts and to use them responsibly to avoid financial strain.
