Four tips will help you avoid overdrafting bank account

Overdraft fees are an expensive and temporary fix that you do not need to be paying. These fees can come at a price to your account’s balance, however you may never need to deal with them.

You might accidentally spend cash that you don’t have when you’re short on it, which means that you could be in a tough position. Fortunately, these four budgeting tips will help you avoid overdrafting your bank account.

  1. Never spend your savings

Don’t worry about overdraft fees because they only happen if your balance goes below $0. As long as you have money in your account, this can’t happen. If it’s possible for you to do so based on your financial situation, try to put an extra $500 or $1,000 in your account that you never touch.

  1.  Use an app that tracks your balance.

With the help of an app, you can keep better track of your spending so you don’t need to tie up a ton of cash.

You can use your bank’s app to know the exact details of your account. You can also set up other third-party money management apps like Mint to be alerted when your balance drops below a certain limit.

3. Use a credit card for the majority of your purchases.

Overdrafts are more likely for persons who often use their debit card since they neglect about the other checks and transactions that must be paid.

If you can’t afford to spend money now, don’t charge it on your credit card. Use your credit card only when you need to buy something that you don’t have the cash to afford. This way, you won’t take from a bank account that you’re going to need for future purchases. You’ll also be able to control when you pay off your balance and check before spending money if you have the funds for the purchase in your account without a problem.

When you carry a credit card balance, it can end up costing more in interest than an overdraft fee. If you pay off your balance when the credit card company asks for money, you will be confident that there is money in the bank for the balance.

4. Select a bank that does not impose overdraft fees.

If you want to avoid overdraft fees, the best way to do so is by selecting a bank that does not charge such fees. With many banks that have removed this fee, you won’t have to worry about making a single mistake in order to be charged for it.

Whether you use the right bank or pick up on some of the other tips, overdraft fees can be avoided. The right bank can be helpful in that regard and it’s a good option to consider.

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