Opening your mail and finding an overdraft statement can be frustrating and it can totally disrupt your budget. If you had plans to go to dinner, a $35 non-sufficient funds fee (NSF) could throw a wrench in your plans. And, if you repeatedly overdraft your account, you will experience extra fees such as late fees with your other creditors. It can have a domino effect leading to financial disaster. The surest way to avoid NSF is to prepare a budget. In addition, there are steps that you can take to ensure that you have the best account:
1) Do your research and apply for an account with lower fees. If you don’t maintain a minimum balance in your checking account, you could be charged a monthly service charge. However, if you check around, you’ll find that many credit unions don’t charge a minimum balance fee.
(2) You should maintain enough money in the account to cover your expenses. However, on that rare occasion when your debit transaction hits your account before your paycheck, you’ll want to avoid the NSF fee. Getting overdraft protection on your account helps you to avoid a costly insufficient funds fee. This feature is offered through your local bank or credit union. The bank will advance money into your account. This offers you protection while helping you to avoid NSF fees.
(3) When using your debit card be sure to keep track of the monies spent. Just as you keep a log of checks written, you must also document debit card purchases.
