Although it may seem obvious to avoid overdraft fees, many people overcharge their credit card and end up paying for it. One time might be okay, but these charges add up fast. And if you are consistently forgetting, you’ll end up spending a lot of money on overdraft fees.
A research report by the Consumer Financial Protection Bureau found that consumers who are subject to overdraft fees pay an average of nearly $260 a year in overdraft and nonsufficient funds. As a result, many banks are able to use overdraft fees as a lucrative revenue stream. However, for consumers, this is just money going down the drain.
So, if you are one of the people that contributes to the large amount of money made by overdraft fees, it is important to start monitoring your transactions. Simply watching your bank account insures that you don’t end up spending hundreds of dollars in overdraft fees. You’d be surprised how much money you can actually save by managing your transactions correctly. It is always important to manage your money, but if you keep having trouble with overdraft fees, look into other banks or credit card issuers. Some do not charge overdraft fees.
