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The Problem with Overdraft Fees

overdraftFor the many Americans that live paycheck to paycheck, it’s not easy to keep a close eye on a bank account among other responsibilities, and there may be a time when a person ends up unintentionally overdrafting, resulting in significant fees. These overdraft fees are big moneymakers for banks, earning them more than $15 billion and costing the average American over twice than what they would spend on necessary items like eggs or baby clothes on an annual basis.

For most people, a bank charges an overdraft fee of about $35 yet these fees are typically paid for by less than ten percent of account holders, which means they usually end up incurring about ten or more fees a year which translates to more than $600 each year.  For a person who makes the median salary of about $26,000, $600 is a substantial amount.

There have been calls to regulate overdraft fees and limit them to once a month and a maximum of six per year. For the time being however, you may want to get into the habit of regularly checking your bank account to make sure that you have enough money to make a purchase before proceeding with a purchase. Remember that overspending can lead to significant debt and may end up in you having to declare and file for bankruptcy. Viewing your credit score can also give you an idea of whether you need to make adjustments to your spending habits.

This information is provided by Miami bankruptcy lawyer Alonso, Perez & Santos, LLP.  Our areas of practice include bankruptcy, debt harassment, credit card defense, foreclosure defense, immigration law, insurance litigation, business start-ups, and more.  Call 305-676-7545 to speak with one of our Miami insurance attorneys and receive a free consultation.  We look forward to working with you.

This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.