Tips To Avoid Overdrafts
Overdrafts have been in the news a lot lately but they are preventable. Here are six tips you should keep in mind:
- Use direct deposit for your paycheck. You will have access to your paycheck immediately.
- Keep track of your balance and transactions and don’t forget about automatic payments. Today, it is easier than ever to check balances and transactions online, by phone, or at the ATM, 24 hours a day.
- Keep a “pad” or cushion of money in your checking account just to be safe.
- Link your checking account to an overdraft line of credit, savings account, or credit card. These are usually less expensive alternatives, but remember that for overdraft lines of credit and credit cards, you have to pay it back. The amounts are usually not automatically repaid from new deposits into your checking account.
- See if you qualify for a small line of credit that will cover you if you overdraw your account. Just be sure to pay it back as soon as you get the bill.
- Sign up for automatic notification when your balance drops below a certain level. You may be able to get notified by text message or email.