Bank overdraft fees on a checking account is a constant problem for some individuals and with recent investigations and purposed changes to how banks charge overdraft fees and debit accounts there are measures being taken to cut down on bank overdraft fees. However, with the holiday season coming the dreaded overdraft on a checking account could be an inevitable experience for some.
One great way to avoid bank overdraft fees on a checking account is to link your checking account to a savings account. These programs may charge a fee to cover any overdraft but the fee some banks charge are going to be much lower than the normal $25 to $35 fee for an overdraft from a checking account.
Having cash on hand is always the best idea since people are less likely to impulse buy and more likely to keep expenses low when they actually have to hand cash over. Also, cash brings a reality to the expense and will sometimes cause shoppers to seek out better deals. If a debit card is used it sometimes gives shoppers the idea they have free money or they quickly lose track of their account balance so bank overdraft fees follow.
Budgeting is the best way to avoid bank overdraft fees on your checking account. After a year of tough times and economic hardships many want to splurge for the holiday season but knowing what you’re going to buy, the cost of your purchases, and the amount in your checking account is a guaranteed way to avoid any overdraft fees. After all your purchases are complete and an assessment of your checking account is made then those “little extras” can be sought after without worry. If the “needs” are already bought and at home then the “wants” will not be thrown in the cart and cause an overdraft in your checking account.
Many people who own a Belk Credit Card or other retail credit card could benefit from using a debit card much more than a credit card. The overdraft fees issue has been a concern but it is always better to buy with cash then credit if you have made any bad financial decisions in the past. This is something more Americans should think about before moving forward in their financial life.