You May Be in Need of Payday Loans
Ever needed a payday loan to cover overdraft fees or ATM fees that your bank has charged you? If you haven’t, you just might be looking for one sooner than you think. Because of economic turmoil, banks are forecasting that overdraft fees and ATM fees will continue to rise above the average of $34.65 and $1.98, to try and cover losses over bad mortgage loans and poor investments. So what does this mean for you? Hopefully better budgeting and planning.
Paying Interest to Access Your Money
As convenient as an ATM machine is, you should really pick and choose which ones you use. Most banks charge a fee for using competitors’ ATM machines and sometimes that fee can be up to $2.50. If you only take out $20, you’re paying 12.5% interest on your own money. It’s kind of ridiculous, huh? A payday loan that is paid back on the very next payday has less interest then that. The best way to avoid these fees is to use your bank’s ATM machine or find out which ATM machines are in your bank’s network. Planning ahead can make a world of difference on your bank statement.
Pesky Overdraft Fees
We have all over drafted our accounts for extra money for something at one point or another; it happens. My personal favorite though is when I purchase something at the grocery store after my paycheck has been deposited into my account and because deposits get posted after debits for the day, I get charged an overdraft fee even though the money was in my account before I made the purchase. Banks look for any way possible to charge you a fee to help boost their bottom dollar. What’s even worse is some banks charge an overdraft fee for every purchase over your limit, no matter how small, and then charge you for every day that your account is in the negative.
Where Does It End?
It doesn’t end, plain and simple. Banks will keep raising fees no matter what. The real question is, how much will they rise? Even if your bank is not raising its overdraft fees, you should really look into what fees they are raising. Banks are tacking on fees to savings accounts for too much activity in the account or if you keep a balance over a certain amount. It kind of defeats the purpose of saving emergency funds if you’re going to get charged to do so. Other fees rising include service fees, overdraft protection fees, and bounced check fees for those accounts that do not have overdraft protection. The best thing you can do is get a list of all the fees your bank charges and then ask how each of the fees applies to your account.
Knowing Is Half the Battle
Being responsible about your checking and savings account is the best advice I can give you. Make a budget and pay attention to accounts by balancing your checkbook and watching activity online. Knowing what’s going on with your money at all times is half of the battle with bank fees. Times do get rough though and accidents are bound to happen. If you find yourself in a crunch with the bank, there is always a payday loan around to bail you out.
Tell me about it. Almost everything comes with a price now. You must pay a fee to obtain personal check or money orders. Generally, you cannot even make payments online or over the phone without making an additional payment. Overdraft fees are ridiculous. I’m just glad that there are financial resources, such as payday loans and cash advance, you can utilize to temporarily relieve a broken budget.
Wow. I never knew that overdraft fees were getting so out of hand. I have always tried really hard to not get overdraft fees and occasionally I will but never to the point that I can’t manage it in my budget. I will have to be much more careful this year to not get any overdraft fees.
I know if my purchases were actually debited right when they were made I would have saved a lot in overdraft fee’s. Honestly I thought that that’s how it worked until I kept getting charged for minor things not knowing why. The bank finally broke it down to me and I understand now but I guess that’s what I get for assuming and not asking. But really think about it. If companies would automatically debit your purchase right when made it would save a lot in overdraft fee’s and if banks would allow you to make a purchase because you have a positive balance but allow you to overdraft, unless you had a back up account and not allow you to overdraft more than once, there would be less added fee’s as well. It would look like they were actually doing it for the benefit of their customer’s. Some might oppose because the overdrafts save them in financial trouble and don’t mind paying the fee’s, but that’s what payday loans are for, to get you through till your next payday!
Thank you for the information. These were nice reminders. It’s been a long time since I was charged an overdraft fee. I’m glad that I have access to my bank and credit card accounts on the internet so that I can always check my balances.