Do you often find yourself overdrawing your bank account and getting hit with an overdraft fee, if not more than once, causing even more checks to overdraft? It’s a vicious cycle, isn’t it? 

One of the biggest wastes of money is overdraft fees. There are so many other things you could put $25 to $30 towards, like new shoes or a new pair of jeans, or better yet, apply it to that credit card or loan you are trying to pay down. Avoiding overdraft fees simply takes planning and discipline. Here are some strategies you can implement to help you avoid overdraft fees, now and in the future.

1.  Get on a budget. Budgeting is the best way to help you plan and know how much money you have to spend on your bills for living, paying down debt, and entertainment. If you don’t know how to budget, there are classes you can take online or offline. You can also find a friend who is “good with their money” and have them teach you. People who are good with their money are disciplined and have a budget. Knowing how much money you have to spend on things like groceries, gas and entertainment will help you avoid overdraft fees.

2.  Use cash instead of a debit card or credit card whenever possible. Once you know how much you can spend on groceries, take that amount out of your bank account and spend only that much on groceries. Do this for all of your bills and you will never have another overdraft fee again.

3.  Overdraft protection. Overdraft protection is basically a line of credit the bank gives you and will use if you overdraw your account. So instead of charging a fee to your account, the bank uses some of the credit to cover the amount of your overdraft. While you may save on overdraft fees, you end up with more debt you will eventually have to pay off. In addition, if you’re not disciplined with your money, it is too tempting to use your overdraft protection to buy something or pay a bill when you don’t have the cash to do so. 

Avoiding overdraft fees can save you tons of money, especially if you’ve gotten in the vicious cycle mentioned above. So, get disciplined, get on a budget and use cash wherever and whenever you can! You might be surprised at how much money you actually have when you know where your money is going.

Have you ever noticed how high late fees are? One way to save a ton of money is by avoiding those dreaded late fees you see on your credit card statements, your utility bills and loans. Below are some steps you can take to avoid these late fees.

1.  Get on a budget. Know your income and what you need to pay out each month. By budgeting you are in control of your money, and your money is not in control of you. 

2.  Avoid those dreaded late fees by knowing when to send your payment in the mail in order for it to get there on time. Plan ahead.

3.  Use the Bill Pay feature most banking institutions have now. You can set up your bills to be paid each month, on time, by implementing your budget and this feature. This will also help save tons of money on checks and stamps.

4.  If you cannot avoid getting the payment there late, call your institution and let them know you are going to be late. Tell them your situation, and ask if they can remove the late fee. It never hurts to ask, and you might be surprised by the response!

5.  If you have late fees already accumulated, call your lenders, creditors and utility companies. Tell them your situation, let them know you want to work with them, and ask if they can remove any, if not all of your late fees. Every little bit will help and if you go in with an action plan (a budget set up to avoid future late fees), they will more likely be willing to work with you. Remember to stay positive and reassure them you will not incur any more late fees. They may not take off any or all of the late fees, but it will help them to know you are on top of the situation and are trying to work it out with them.

With budgeting, planning ahead, utilizing today’s technology, and communication with your lenders, you can save yourself hundreds if not thousands of dollars each year in late fees.