Adding Insult To Injury, Banks Raise There Fees
Not only were the banks bailed out with your tax dollars via the federal bailout bill, but now the banks are bolstering profits by increasing overdraft fees on your bank accounts. Before you get surprised with hefty overdraft charges, know that a solution to avoiding excess charges may be found in a helpful payday loans or credit card cash advance.
Your bank has raised its fees on you again!
What are overdraft fees?
Overdraft fees are the result of a customer over drafting their account. Over drafting an account happens when more is charged to an account then there are funds left in the account to cover. What happens then is the bank covers the deficient portion of the transaction and charges you a per item fee of up to $38, which is more than most payday loans.
The crux of the issue is that if the account gets overdrawn, each check thereafter will accrue additional penalty charges, usually on an escalating scale. So if you wrote 3 checks for items fewer than five dollars for example, it would cost you the written amount of the checks plus the overdraft fees. Therefore $15 dollar worth of transactions could cost you over a hundred dollars.
Unfortunately by the time you find out about the discrepancy in your account balance, you may have already written one if not several checks that may soon be hitting your bank account thus racking up additional fees.
In emergency situations like this one you will want to bring your account back into good standing as soon as possible to avoid the pileup of overdraft fees from accruing. Unfortunately when it comes to money, your next paycheck may still be several days out which means you need to seek a more immediate solution.
Speed is of the essence, so you must find a solution which will both, give you the allotted fund you need and give them to you quickly..
Borrow Money From A Friend or Family Member
If you have family members or a friend who can give you a quick cash advance until your next payday arrives, this may be your fastest option. If they cannot provide you the necessary funds to bring your account back into good standing then you will have to continue your search
Credit Card Check
On occasion your credit card providers will send you checks for purchases that you can either write for the purchase of goods and services directly, or that you can write out to yourself to deposit funds in your personal bank account. Credit card checks will have fees attached to them that will be either a set minimum fee or a percentage of the written check amount. These fees will be much cheaper than the overdraft fees you would likely be facing.
Credit Card Cash Advance
Convenient...but they can be trouble
You can also get a cash advance directly out of an ATM machine using your credit card. This however will not only cost you some in transaction fees but you will also be limited to between three and five hundred dollars on any given day. Depending on your overdraft situation this may or may not be enough funds to bring your account back into good standing.
Payday Loans
One of the more popular services for obtaining cash fast is through payday loans. Payday loans are short term loans usually no longer than two weeks in term and require very little criteria for the approval process. Funds can be obtained within two hours and in amounts of up to $1500 dollars.
Which ever route you choose, just be sure to do it as quick as possible to avoid any unnecessary hardship caused by overdraft charges.
Overdraft fees are getting out of hand and banks are finding sneaky ways to tack them on to your account. It really is sad when you get charged $35 dollars for a $3.00 purchase at the grocery store.
The rise of bank fees is getting ridiculous. Charges for late payments and exceeding your credit limit have almost tripled in the past decade. Another thing I find ridiculous (and a bit amusing) is that their “courtesy” services are not so courteous. There’s a fee to talk to bank tellers in person or on the phone, which is now standard for many low-balance accounts. Cashier checks and money orders which used to cost $1 or nothing at all are now up to $10 or more. There is also a fee to make payments by phone or online ranging from $5 to $15. Talk about ridiculous!
It may be official – the banks may really be out to get us. After they mismanage their debts, they send our economy into the tank, and now they are starting to gouge the citizenry, their customers. It’s no surprise that the majority of bank’s incomes are from overdraft fees.
The banks have made it to where I question there goals. – We want to satisfy all of our customers’ financial needs, help them succeed financially, be the premier provider of financial services in every one of our markets, and be known as one of America’s great companies. The last sentence is a “vision” made by one major banks CEO. I question this because the only provision I’ve seen so far, and same goes for many banks, is a provider of “financial FEE’s” and not financial needs.