How to Avoid Abusive Overdraft Charges by Banks
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Stop Forking Over Handfuls of Cash to Your Bank Each Month
Paying exorbitant overdraft fees to mega-banks each month has become a habit that most people wish they could break. Every time you have an overdraft, you are likely paying $20, $30, $35 or more to your bank in exchange for their covering your overdraft for a few days. This amounts to their extending bank customers like you very small loans for a few days and earning the equivalent of huge "interest rates." In other words: their loaning you $3 until you pay back your overdraft for that extra bagel you bought at Starbuck's costs you $35. Ouch! Some think that this amounts to highway robbery.
Now, technically, what the banks are doing is not illegal. That's because, when you opened your new checking account, most likely you were automatically enrolled in an "automatic overdraft protection program." In doing this, you essentially signed away your rights to bits of your bank balance whenever you caused your bank to have an overdraft - even if you overdraft by just a few dollars.
To stop forking over your money hand over fist to your bank in the form of crazy overdraft fees, you should educate yourself about how to avoid abusive overdraft fees charged by banks.
Now, technically, what the banks are doing is not illegal. That's because, when you opened your new checking account, most likely you were automatically enrolled in an "automatic overdraft protection program." In doing this, you essentially signed away your rights to bits of your bank balance whenever you caused your bank to have an overdraft - even if you overdraft by just a few dollars.
To stop forking over your money hand over fist to your bank in the form of crazy overdraft fees, you should educate yourself about how to avoid abusive overdraft fees charged by banks.
Why Banks Love Abusive Overdraft Fees
Here is why banks want you to keep doing what you're doing: you are giving them more than $25 billion per year in overdraft fee revenue alone. That's $25,000,000,000! In overdraft fees going into their pockets.
Happily, you can avoid these abusive practices. For example, check out: http://www.escape-overdraft-fees.com
5 Ways to Avoid Abusive Overdraft Charges by Banks
It's time to become empowered! Here are 7 things you can do to avoid abusive overdraft charges that keep creeping up in your bank statement and draining your account of its lifeblood.
- Check your account balances online twice per day (once in the morning, once in the evening) and make sure you have enough money in your account. This is a pain in the neck but, hey, it beats getting dinged by another abusive overdraft charge.
- Keep a "buffer" of at least $25 - $200 (depending upon your means) in your accounts. Promise yourself not to spend the buffer each month - no matter what!
- Connect your checking account to a savings account containing a balance that will cover your overdrafts. (Careful: some banks that offer this service still charge a small fee for this type of overdraft protection).
- Hook yourself up to a shock collar that is wired through your smart phone and is programmed to give you a jolt every time you do an overdraft. This will train you not to do overdrafts! (Okay, maybe this one is a bit drastic. On second thought, don't try this one at home).
- Switch to a bank that does not charge overdraft fees - even if your overdraw your account!
Better Banking Resources that You May Fall in Love With
If you are like millions of other bank customers, you are likely highly dis-satisfied with your current banking situation. Never fear - there are plenty of alternatives out there for you.
- Second Chance Checking
- If you have been rejected for a new bank account or want to find a bank that does not charge overdraft fees, you have to check this one out!
- Listing of Non-Chex Systems Banks
- Here is a list of banks that do not use Chex Systems when evaluating a new checking account application.
- Approve My Loan
- Looking to get a better credit score or get quick approval on a short-term cash loan? You need to check out this site.
- Escape Overdraft Fees
- If you are tired of paying abusive overdraft charges, switch to a bank that will never charge you an overdraft fee again - no matter what.
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