Debit Balance

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Definition of 'Debit Balance'

A debit balance is the amount of money that you owe to a creditor. It is the opposite of a credit balance, which is the amount of money that you have in your account.

When you make a purchase, the amount of money that you spend is added to your debit balance. If you make a deposit, the amount of money that you deposit is subtracted from your debit balance.

Your debit balance can be positive or negative. A positive debit balance means that you owe money to your creditor. A negative debit balance means that you have more money in your account than you owe.

If your debit balance is positive, you will have to pay interest on the amount that you owe. The interest rate that you are charged will depend on the type of loan that you have.

If your debit balance is negative, you can use the money in your account to make purchases. You can also withdraw money from your account to pay bills or make other payments.

It is important to keep track of your debit balance so that you do not overdraw your account. If you overdraw your account, you will be charged a fee by your bank.

Here are some tips for managing your debit balance:

* Make sure that you know how much money is in your account before you make a purchase.
* Set up a budget so that you can track your spending.
* Automate your payments so that you do not forget to pay your bills.
* If you are struggling to make your payments, talk to your creditor about your options.

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