Understanding Overdrawn Bank Accounts: Causes, Consequences, and Solutions

Overdrawn refers to a situation where a bank account has a negative balance, meaning that the amount of money withdrawn or debited from the account exceeds the amount of money available in the account. In other words, the account holder has spent more money than they have in their account, resulting in an overdraft.

For example, if someone has $1,000 in their checking account and they write a check for $1,500, then they are overdrawn by $500. They will need to deposit more money into their account or pay off some of their debts to bring their balance back to a positive amount.

Overdrafts can be avoided by keeping track of one's account balance and not spending more than what is available in the account. Some banks also offer overdraft protection, which allows the bank to cover the difference between the amount spent and the available balance, but this service may come with fees and interest charges.