Debt DefinitionApparently, the dream … money at your disposal, whenever you want, as you want, and whose use does not have to be justified … But let’s be realistic: the money is not free. And revolving debts are certainly handy, but use common sense.


The principle of cash reserves


Cash reserve, or revolving debt, the principle remains the same. An organization provides a sum of money, the amount of which is set according to your wishes and the study of your case. You can freely dispose permanently, all or part of that sum. It will restore each month as and when your repayments.


How does it work?


At the opening of a cash reserve, you have the right to have a certain amount, for example 3500 dollars. As long as you do not use the money, you do not have any monthly payment. If you want to replace your TV, or buy a piece of furniture, then you can use a portion of this amount, say 1500 dollars you have to then start paying the monthly installments to 1500 dollars spent. The sum can be quickly transferred to your bank account, but the cash reserve can also be associated with a credit card. According to the institution where the cash reserve is open, the credit card can be accepted by some retailers.


A product free service!


Banks are not the only ones to offer this service: reserve money can be offered by financial institutions that specialize in credit by department stores, sales organizations remotely, hypermarkets … As it is an unassigned to a specific purchase credit, you can use the money as you see fit. However, be aware that the interest rate charged is generally high, it is far better to turn to another type of credit to finance a single purchase.