The world of bank overdrafts can appear to be a perilous place — full of mysterious three letter acronyms, unwelcome fees and a sense, for me at least, that banks are profiting from my occasional need for some financial flexibility.
No wonder then, that many of us are left worrying about how much our overdrafts cost us and asking: what is my limit? When will I be charged? Where did that fee come from?
Maybe, like me, you’ve even found yourself stumbling into unknown territory with overdrafts, only to find answers to your questions when it’s almost too late and your bank account has been further depleted by monthly fees and overdraft charges. In these instances it can be more than stressful. Falling into a rut with your overdraft can leave you feeling stuck.
But does it have to be such a minefield? Turns out, no: no, it does not. And after a few years of figuring things out, here’s what I’ve learned about overdrafts: the costs, benefits, and how to turn what could be a bleak experience into something positive and useful.