| It is important for individuals to carefully monitor their | | | | and may charge interest on that loan until the amount |
| money at all times to avoid financial troubles. It is | | | | is repaid. |
| important to keep updated records on your earnings, | | | | Some banks set up overdraft protection for their |
| spending, and the amount of available cash and credit | | | | clients by linking the individual's checking account to |
| you have on hand. Unfortunately, mistakes and | | | | their savings. In the event of an overdraft, funds from |
| oversight may cause your bank accounts to dip below | | | | the savings will be automatically diverted to the |
| zero. For people who do not have protection, this may | | | | person's checking account to cover the amount |
| mean insufficient funds charges, returned check fees, | | | | charged. This feature requires that the account holder |
| and maybe even hot check charges. | | | | have money in savings to withdraw, but is often |
| It is important to protect yourself against financial | | | | less-expensive than other overdraft plans because it |
| troubles and make sure that your accounts are | | | | does not require borrowing from the bank. |
| covered in the case of an unexpected event. Many | | | | Individuals considering overdraft protection should |
| people opt for overdraft protection on their accounts | | | | inquire about the fees charged by the bank for |
| to make sure that they are protected in the event that | | | | overdraft protection before signing up for any |
| a charge or check clears without sufficient funds in the | | | | program. Most protection plans are less-expensive |
| bank. | | | | than the costs associated with over-drawing on the |
| Many banks charge a small fee for protection, but it is | | | | account, so it is often wise for individuals to set up |
| often far less than the penalties the individual may | | | | protection in case of an emergency or unexpected |
| face for over-spending on their account. If a check is | | | | event. |
| cashed before adequate funds are available in the | | | | Individuals suffering from serious financial burdens |
| account, overdraft protection will often cover the | | | | should consider consulting a legal professional to learn |
| negative amount and will withdraw the owed funds | | | | about options for relieving the financial stress. For more |
| from the next deposit. This helps account holders | | | | information on overdraft protection, bankruptcy, and |
| avoid insufficient funds and returned check fees. | | | | debt consolidation, visit the website of Boston |
| Banks may treat money used as a temporary "loan" | | | | bankruptcy attorney Joshua Spirn & Associates. |