Don't Bounce a Check and Be Stuck with a Big Fat Fee
Have you ever been on the receiving end of a bounced check fee or overdraft fee before? If your answer is no then you definitely should be proud of yourself because millions of Americans have felt the wrath of the dreaded overdraft fees. Some banks are more forgiving than others are and may waive some of these fees, if you are lucky. If you are not so lucky, there are some banks where these overdraft fees can stack one upon another and essentially cost you for every transaction made after your account went negative. Some banks also have daily fees until you get your balance positive, making the fees add up even faster and costing you more every time it happens.
When opening up a bank account, it is important to find out if your financial institution offers any kind of overdraft protection and what the stipulations are. Some banks may require a specific amount of money remain in the account while some others will say a certain amount of transactions will be protected. Ensure that you have the proper information from the get go so you know what you are getting yourself into. Also, find out the amount that your bank charges for an overdraft fee and/or bounced check fee.
Where can overdrafts occur?
Well a few ways that an overdraft on your account can occur are as follows:
- Writing a check - you may think that you have enough money in your account to cover the check that was written but it is important to know the exact amount you have in your account at all times to avoid a bounced check. Not only will your bank charge you a fee, the company that received your bad check will as well - that would be a double whammy!
- When you are withdrawing money from an ATM machine - watch out for those ATM fees! Some are upwards in the $3 range. If you are able to go to your bank to take money out, do that to avoid fees.
- Swiping your card too many times - it is very easy to lose track of how much money is in your account when you can swipe your card virtually anywhere now. How often do you see someone writing a check?
- Automatic bill pay - this can get you every single time. If for some reason you are running low on money, remember all the automatic payments that you have being taken out monthly/weekly and adjust it so you do not get charged any fees.
What happens if you get charged? Well you may find yourself in a big financial bind because overdraft fees accumulate quickly. Some banks charge close to $30 each time you overdraft. Applying for a payday cash advance loan is a great option to help you avoid all of these fees, just until you receive your next paycheck in your account. Think of a payday loan as a friend lending you a little cash until next week!
