Avoid Rising Overdraft Fees With Payday Loans

The Result Are In

Once again, bank ATM and overdraft fees are on the rise. This comes after a survey released last week by Bankrate.com based on information from 249 banks in the nations 25 largest metropolitan areas. The good news however, is that avoiding such fees is easy. “With 24-7 online access to your accounts, there’s really no excuse for losing track of your balance anymore,” said Greg McBride, senior financial analyst with Bankrate. So, the ancient proverb rings true “to whom much is given much is required”.

The survey quotes the average fee for using another banks ATM is now $3.43, up 13 percent from last year. A bounced check costs an average of $28.95, up 2.5 percent from a year ago – more than the fee from the average payday loans lenders.

Why the Higher Fees?

Is your bank nickel and diming you?

The higher fees can be a result of many things. With the recent trouble in our economy many banks may simply be trying to make up lost capital. Others may be rising their fees to hold consumers accountable to their personal finances. With a stressed economy and rising unemployment rates many people are simply falling short financially.

With all the competition between banks to win market share, many have reduced or eliminated many of the set up costs for opening a new account. The number of banks offering free checking has doubled in the past few years. Now we know where the difference is being made up.

Consumer Concerns and Protecting Yourself

Among consumers the most outrage seem to be over overdraft fees. With many banks adopting a tiered structure where each successive overdraft costs more than the previous, which has never been how payday loans work. The cascading effect of making a small discrepancy balancing your checkbook can prove to be more than costly.

The best thing that consumers can do to avoid penalty is to stay on top of their finances. Balancing your checkbook more carefully and more often will help you to catch oversights that you might otherwise miss.

The largest percentage of overdraft fees seems to be from unrecorded debits. If you use a debit card for all your transactions it is imperative that you request and record your receipts. A safer way is to use a credit card for your monthly transactions and than write a check for the full balance at the end of the month. This way you curb the risk of over drafting your account using your debit card as well as providing yourself a monthly ledger of your purchases for quick review.

As a Last Resort

If you find yourself in a position where you have over drafted your account and you still have checks that have yet to hit your bank, you may consider applying for payday loans.  Payday loans would be far less costly than multiple overdrafts. Individuals can apply and be approved for payday loans online. The process is quick and easy and best of all, funds are electronically deposited into your bank account automatically so your funds will be their before your next check hits the bank.