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Overdrawn Meaning: Definition, Examples, and Translations

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overdrawn

[หŒoสŠvษ™rหˆdrษ”หn ]

Definition

Context #1 | Adjective

finance situation

Overdrawn refers to a situation where a bank account balance falls below zero, indicating that more money has been withdrawn than is available in the account. This typically happens when withdrawals are made without sufficient funds to cover them. Being overdrawn can lead to overdraft fees, as banks may charge account holders for the privilege of borrowing money to cover the shortfall. It reflects poor financial management and can affect oneโ€™s credit rating if it becomes a frequent occurrence.

Synonyms

in deficit, negative balance.

Examples of usage

  • She realized her account was overdrawn after checking her balance.
  • He was charged a fee because his account was overdrawn by several hundred dollars.
  • The bank informed me that my account had been overdrawn for two consecutive weeks.
  • Using an overdraft can be handy, but it's important not to get overdrawn often.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Banking and Finance

  • Being overdrawn often incurs fees from banks, which can add up quickly if not managed.
  • Banks may offer overdraft protection, which allows you to borrow money up to a certain limit to avoid bouncing checks.
  • In many countries, overdrawn accounts can severely impact your credit score if not resolved.

Cultural Perspectives

  • In some cultures, being overdrawn is viewed negatively, as it can signify poor financial management or responsibility.
  • Conversely, in entrepreneurial circles, a temporary overdraft may be seen as a strategic move to maintain cash flow during investment phases.

Psychology

  • Being overdrawn can lead to stress and anxiety, impacting mental health and overall wellbeing.
  • Studies show that financial pressures, such as being overdrawn, can affect decision-making and lead to a cycle of poor financial habits.

Literature

  • Various novels and stories depict characters becoming 'overdrawn' to illustrate themes of desperation or recklessness in life choices.
  • Financial struggles, including being overdrawn, are commonly used in literature to showcase a character's arc from wealth to poverty or vice versa.

Origin of 'overdrawn'

Main points about word origin

  • The word 'overdrawn' combines 'over', meaning excessive, and 'draw', which originates from the Old English term meaning to pull or withdraw.
  • First recorded use of the term 'overdrawn' in a financial context dates back to the 17th century.

The term 'overdrawn' originates from the combination of the prefix 'over-' meaning 'excessive' or 'beyond', and the verb 'draw', which in this context relates to drawing money from a bank account. The verb 'to draw' in a financial sense has roots in banking practices where withdrawing money is referred to as 'drawing funds'. The concept of being overdrawn has evolved alongside banking itself, particularly with the introduction of checks and debit cards, which allowed account holders to withdraw more money than they actually had. This has been a common practice in the last few decades, coinciding with a rise in consumer credit and spending habits that often lead individuals to spend beyond their means.

Word Frequency Rank

At rank #26,283, this word represents specialized academic or technical vocabulary. It's less frequently encountered but may be valuable in specific contexts.