How to avoid overdraft fees

If you're like me you've run into overdraft fees a couple of times and have just basically thrown money away. With experience I've learned how to help avoid overdraft fees, here is how.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• self control
• money management

1. The simplest thing you can do is instead of using your debit card as "credit" always run it as debit, that way the money is automatically debited from your account versus it taking days to clear to your account.

2. If you're bad at using the debit option then contact your bank about a "credit opt out" option. Basically you won't be able to use your card as a credit, a pin will always be required.

3. You know those Transaction Registers you get with your checkbooks? Use them! Keep track of every transaction that way there will be no surprises. If you don't have checks then just write everything down in a notebook or a piece of paper.

4. withdraw money versus using your debit/credit card. That way you can only spend the allotted money you've taken out.

Tips & Warnings

• If you still can't help over-drafting, stick with a Credit union there fees will be less harsh than regular banks.
• Also, some banks have specials, for example WAMU gives you one free overdraft per year. Beats nothing, right?
• Its hard to be good with your money, but if you work hard at it, it'll grow on you to be good with your money.

[gururaul]

on 3/16/2009 Please tell me you don't have an account with TCF bank. If you sneeze, they send you an overdraft fee notice in the mail.

[Psalmist4M]

on 8/31/2008 Interesting article. Thanks for sharing.