4 Ways to Avoid Overdrafts During the Holidays

Few things can kill the good vibes of the holiday season like an overdraft error from your bank. It happens to the best of us. In this article, we’ll share tips for how you can use technology and a bit of smart shopping to keep from ending up in the red. Make sure you know your bank’s overdraft protection options. Overdraft coverage can be a fantastic protector for your account. With it, a debit charge is approved even if the transaction will cause your account to slide below a zero balance. Think of it as a line of credit offered by your bank to cover overdrafts. The downside is that the bank is probably going to tack on an overdraft fee (usually in the $25-$35 range), which means your below-zero-balance will be even further below zero. Link your checking account with a line of credit or savings account. To avoid the overdraft fee, consider opting out of the overdraft protection and link your account with another one that will serve as a backup. Rather than being hit with a fee, funds from your linked account will be transferred to the checking account when you overdraft. Prepaid cards will prevent you from spending beyond your means. If self control is a problem, prepaid cards could be an ideal solution because swiping your debit card without discipline can easily lead you to overspend. With prepaid debit cards, you set an amount that cannot be breached – so there’s no way to overspend with them. Get a heads-up with mobile alerts from your bank. Most banks will send an automatic text message to you if your balance dips below a level that you set. This is also ideal for alerting you to unauthorized charges or potential problems with deposits.

For Debt Relief Options, Call The Oswalt Law Firm

Waking up each morning with thoughts about what to do with personal debt is no way to live. Getting into debt happens to many of us, but there are ways to get out from underneath. To discuss the host of options available to you, get in touch with us here at The Oswalt Law Firm. There’s never a charge for the initial consultation, so call us at (602) 225-2222.