A "negative balance" occurs when an account, such as a bank account or credit card, has a balance that is less than zero. This means that the account holder owes money rather than having funds available. For example, if a bank account has a balance of -$50, the account holder must deposit at least $50 to bring the balance back to zero. Negative balances can result from various activities, such as overdrawing an account or failing to make a payment on a credit card. Financial institutions may charge fees for negative balances, and repeated occurrences can lead to penalties or account closure. Managing finances carefully can help avoid negative balances.