Advanced English Dialogue for Business – Debit balance

Listen to a Business English Dialogue About Debit balance

Skylar: Hi Piper, do you know what a debit balance is?

Piper: Yes, a debit balance occurs when the amount owed exceeds the amount of funds available in an account.

Skylar: That’s correct! It means the account holder owes money to the institution or lender.

Piper: How does someone end up with a debit balance?

Skylar: A debit balance can result from overspending, borrowing money, or incurring fees and charges that exceed the available funds in the account.

Piper: Are there any consequences of having a debit balance?

Skylar: Yes, having a debit balance can lead to overdraft fees, interest charges, and potentially damage to the account holder’s credit score.

Piper: Can debit balances occur in different types of accounts?

Skylar: Yes, debit balances can occur in various accounts, including checking accounts, credit card accounts, and margin trading accounts.

Piper: How can account holders avoid ending up with a debit balance?

Skylar: Account holders can avoid debit balances by monitoring their spending, keeping track of their account balances, and avoiding overdrafts or exceeding credit limits.

Piper: Thanks for explaining, Skylar. Debit balances sound like something to be mindful of when managing finances.

Skylar: You’re welcome, Piper. It’s important to stay informed and proactive to avoid financial pitfalls like debit balances.