5 Ways To Deal With A Bank Overdraft Fee

Posted on

Sometimes you find out you're in a bit of a financial pinch. Say, for example, that you need to pay for gas to get to work, and maybe you're down to your last few dollars. So you get gas and you forgot that you have an automatic withdrawal from your bank account coming up tomorrow. Now you're faced with getting an overdraft fee. What can you do? Here are some ways to lessen the blow.

1) Borrow Money from a Friend or Family Member

Asking a friend or family member for a loan is never pleasant, but sometimes unavoidable. You might need to swallow your pride and ask for a loan to get you through until your next pay day.

If you do this, make sure you pay your friend back in a timely manner, or it could strain your relationship. Money is never a good enough reason to throw a friendship away, so only borrow money if you can pay it back.

2) Get a Paycheck Advance Loan

Pay day advance loans from companies like Cash Depot Inc. can be manageable, and really save you in an emergency. When you need a hundred or so dollars, and will get paid within the next few weeks, getting a payday loan is a good idea. If you can get a small loan and deposit some cash into your bank account, you won't get a bank fee.

It's much better to pay a few dollars in interest instead of having a bank fee that could potentially snowball out of control until you are in the hole with your bank a couple hundred dollars.

If you think you're going to get a bank fee or see that you've already got one, deposit cash from your loan as soon as you can. Usually if money is deposited into your account within the same day you get an overdraft fee, then it will nullify the fee. 

3) Talk with Your Bank Representative

This is one route you can try. It may not be successful, but it's worth trying. If you can explain your situation to a bank representative, he or she might take pity on you and reverse the fee. Just be kind and respectful to your bank representative and see what your bank will do for you, if anything.

4) Sell Something You Own or a Service

Offer to mow your neighbor's lawn for less money than he or she would pay for a professional to do it. You could babysit, repair a household appliance, or put any other talent to use to make you some quick cash.

Listing an item like an old guitar or electronic item for sale on a yard sale website or social media website might prove helpful in getting you some fast cash, but it might not sell fast enough, so beware.

5) Get a Cash Withdrawal from Your Credit Card

The option to withdraw cash from your credit card should truly be a last resort because the cost in interest is usually astronomical. This is an option to choose, however, so do so with careful consideration.

Whatever you do, be smart about it and plan to pay any short-term loans back as soon as possible.