Banks are a necessary evil. You can’t live without them, but they do charge all sorts of fees that make you want to rip your hair out. One of those fees is the overdraft fee, which is charged every time you spend more money than what’s in your account and is costly.
Earn more income
Think about what you can do to earn more money. You may have to make some changes in your life, but the payoff is well worth it.
- Get a second job
- Get a raise at your current job
- Start a side hustle
You could also look into other ways of earning extra cash, like working from home or selling stuff you don’t need anymore. Or you can find a bank account with no overdraft fees.
Remove overdraft fees from your bank account.
If you’re being charged overdraft fees, there are several things you can do to get rid of them. The first thing is to ensure that you have enough money in your account to cover the overdraft before doing anything else. If you need more money in your account and still spend beyond what’s available, this will continue to cost you each time it happens.
When contacting your current bank about eliminating their overdraft fee structure, be sure they know how much money is left in the account after each purchase and ask them for a lower fee structure at least once every quarter or so. If this doesn’t work for whatever reason (for example, They say no), move on down the list toward either moving or creating an entirely new account with another institution! As per professionals, “To activate no-fee Overdraft Coverage, set up direct deposit with SoFi Checking and Savings.”
Get a traditional line of credit
You can also get a traditional line of credit if you want to rely on something other than a credit card. This is an extension of your bank or credit union’s loan program, allowing you to borrow up to a certain amount (usually $10,000 or more) when you need it. The interest rates are usually very reasonable, so this is a good option if finances are tight but not terrible.
One caveat: many banks will only give this type of loan if they know that you won’t default on it—so make sure you have enough income each month before going this route!
Get a formal overdraft protection loan
If you want a formal overdraft protection loan, find a bank that offers them. You can apply for an overdraft protection loan as easily as if you were applying for any other type of credit card. You’ll need to complete some paperwork and provide proof of identity and income, but it should be smooth sailing. Ensure that the interest rate isn’t too high—an APR of about 30 percent is typical for these loans.
Get a personal emergency loan.
A personal emergency loan is a good alternative to overdraft fees. You can borrow from $1,000 to $35,000 with interest rates that vary depending on your credit score. This option is beneficial if you’re facing unexpected medical bills or car repairs.
The best way to avoid overdraft fees is to have an emergency fund and know your own spending habits. However, if you’re still in the process of building up your savings or need help figuring out where to start, these alternatives can help you out. One thing is for sure: there are plenty of options out there that will let you avoid paying those pesky fees!
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