Bank statements explained

Ever wondered why when you have money in the bank account this is shown as a credit balance and when you are overdrawn it is shown as a debit? This is because the statement looks at things from the bank’s point of view so if they are holding money on your behalf you are a creditor i.e. someone they owe money to. Whereas if you owe them money by being overdrawn this is represented by a debit balance – you are a debtor who owes them money!