Recurring overdraft

A recurring overdraft is an account that repeatedly moves into a negative position, typically at the end of the month, rather than as a one-off accident. It is a more telling indicator of financial fragility than an isolated incident, because it reflects an entrenched imbalance between income and expenses rather than an unexpected event. It appears on no declared document: it shows up only in the account's transaction history. Detecting it therefore requires observing actual flows, and observing them across all of the customer's accounts, since an overdraft often sits on a secondary account the application does not mention.