{"id":13461,"date":"2022-06-21T19:36:04","date_gmt":"2022-06-21T19:36:04","guid":{"rendered":"https:\/\/overdraftapps.com\/?p=13461"},"modified":"2023-02-20T20:10:29","modified_gmt":"2023-02-20T20:10:29","slug":"complete-overdraft-guide","status":"publish","type":"post","link":"https:\/\/overdraftapps.com\/complete-overdraft-guide\/","title":{"rendered":"How to Avoid Overdraft Fees [and a $39 Cup of Coffee]"},"content":{"rendered":"\n

We all know the frustration of needing a little more cash to pay a bill or make a small purchase before payday arrives. When you need a few extra bucks to see you through to your next paycheck, an overdraft can help. An overdraft is a line of credit to cover your transaction or withdrawal when there isn\u2019t enough money in your bank account – but there can be significant fees to be aware of. This guide looks at how overdrafts work, how to stop going over your limit, and tools to help you get the cash you need without paying sky-high overdraft fees.<\/strong><\/p>\n\n\n\n

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Imagine lining up for a $4 cup of coffee\u2026<\/p>\n\n\n\n

You step up to the barista and pay with your debit card. You don\u2019t know it, but there isn\u2019t enough cash in your bank account to pay for that coffee – your balance may even already be below zero. But no worries! Instead of declining the transaction, your bank approves the electronic payment, enters your account into overdraft, and hits you with a $35 overdraft fee.<\/p>\n\n\n\n

Congratulations. You just paid $39 for your cup of coffee.<\/strong><\/p>\n\n\n\n

This may sound like an uncommon situation – but overdraft fees cost consumers $33 billion in 2020 alone<\/a>. A supposed \u201ccustomer service\u201d advantage, most banks and credit unions will strongly encourage you to enroll your checking account in their overdraft protection program so that you can still use your account even when your balance is below $0. While this can be helpful and convenient when you\u2019re in a pinch and need a little more cash, you can quickly find yourself owing hundreds of dollars in overdraft fees just by slightly over-spending for a day or two.<\/p>\n\n\n\n

Put simply, overdrafts may be an easy way to avoid the embarrassment and inconvenience of not being able to pay for something, but they are an expensive way to borrow. Though an overdraft seems helpful to an account holder, costs can quickly spiral out of control if overdrafts aren\u2019t managed promptly and properly.<\/p>\n\n\n\n

So, are overdrafts a peace of mind service that helps you pay your bills, or a \u201cgotcha\u201d service applied by banks who let you overdraw your account then punish you with sky-high fees?<\/p>\n\n\n\n

Read on to find out everything you need to know to make take advantage of overdrafts to get cash when you need it, while minimizing or even avoid overdraft fees.<\/p>\n\n\n\n

What we’ll cover:<\/strong><\/p>\n\n\n\n

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