Overdraft Charges, What’s the big fuss?

Just the other day when surfing ripoffreport.com I came across a complaint about overdraft charges. I then searched the site to see how many complaints there were about overdraft charges. THERE WERE 855 MATCHES IN THE SEARCH! I scanned through some of the headlines and not all are exactly about overdrafts, but a good many are. After reading SEVERAL on there it seems that the problem is not the bank charging an overdraft and cheating you out of your money, it is the person posting not keeping up with their checking account balance.

I noticed in several of the complaints the account owner admitting that they didn’t have enough money in their account so they would try getting money transferred or find a way to get money in there before transactions would post. These people are stating they don’t have the money, BUT don’t feel like they should be charged because of their irresponsibility.

Overdraft fees are high to encourage people to keep up with their checkbooks and keep a positive balance. If there was only a $5 fee or not fee at all I guarantee there would be A LOT more accounts running in the negative and when somebody just leaves that account in the negative then it becomes a loss to the bank

With all of that being said there are alternatives to overdraft fees.

1) You could you could have your bank set up a “sweep” with your checking account. There is usually only a small transfer fee.
2) Check with your bank and see if they offer a line of credit specifically for overdraft. This option allows an automatic draw and only charges interest that would normally be significantly lower than the $25-$35 fee per an NSF item with Overdraft Privilege
3) You could actually keep up with your balance for thought.

Moral of the story? Take responsibility for your own actions and quit blaming someone else. If you don’t have the money then don’t spend it. Don’t assume you can beat a transaction to the bank. As soon as you swipe your card or write a check you don’t have that money.

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