In 2012, American banks earned $32 billion dollars in overdraft frees, up 1.3 percent from the previous year. Despite new rules to help prevent abusive overdraft charges, banks and credit unions have still found a way to end up on top.
According to the Huffington Post, financially struggling Americans have been hit the hardest because many banks have forced consumers into “costly overdraft-protection schemes.”
“Consumers might be trying to hide from the banks, but the banks keep coming up with creative ways to pick their pockets,” said Ed Mierzwinski, a consumer program director. Here’s what he had to say about overdraft schemes:
According to Mierzwinski and others, the overdraft rules have led to a host of unexpected consequences, hurting consumers. Some banks now routinely change the chronological order of consumer transactions, putting larger purchases first, so that account holders sometimes find themselves paying multiple overdraft fees even if they exceeded their account balance only once. (The biggest banks charge a fee of $35 for each overdraft, on average.) Some institutions have raised the penalties on bounced checks to scare consumers into opting into overdraft protection.
So to make sure that your hard-earned paychecks aren’t adding to the banks’ billion dollar revenues, let’s look at 5 ways to take responsibility for your spending and avoid being charged those unwanted overdraft fees.
1. Balance your own checkbook. You should always strive to keep your account in a positive balance, and to do this you can’t always rely on the available balance amount that your bank provides. Online banking is a great tool, however the available balance does not always reflect your scheduled or recently-made purchases.
2. Create an artificial buffer. No one knows your spending habits like you do, so give yourself a cushion in your checking account. Most overdrafts fees are the result of small purchases, like fast food, coffee or gas. So just in case you go over your limit, give yourself a $50, $75 or $100 buffer. This will ensure your account balance always stays in the green.
3. Sign up for overdraft protection by linking a backup account. Although this service is not free at all banks, it’s definitely worth the extra money if your are prone to over drafting your account. To cover any overages, considering linking your checking account to a savings, credit card or line of credit.
4. Go old school and use cash. Using cash more often is a great way to avoid potential overdraft fees because you can’t over spend with the dollar bills you have in your pocket. Some reports show that people tend to spend more with debit cards than they do with cash. So to avoid being statistic, make more bill payments and give yourself a daily or weekly cash budget.
5. Sign up for alerts. Services like Mint.com provide phone, email and text alerts when your account is reaching low funds. This will help you make better choices for your daily spending and prepare for unexpected events, like a flat tire or kitchen appliance repair.
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Blue Ivy walks across mommy's at-home photoshoot, but it's the most adorable photobomb ever!
4. One Big Happy Family
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5. Beyoncé, Jay Z & Blue in Beverly Hills — Nov. 11
Beyonce in these heels though?!
6. Beyoncé & Blue in NYC — Nov. 4
Look at Blue in her adorable little bow!
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Blue holding on to mommy for dear life.
8. Beyoncé & Blue spotted in NYC — Nov. 4
Momma Bey looking fierce with her mini me in tow.
9. Blue dressed as Michael Jackson.
10. Blue & Ivy
Just look at that face. Seriously, Jay could never deny this child! She knows how to make all his mean mugs!
11. Beyoncé, Jay Z & Blue in Beverly Hills — Nov. 11
Look at that cutie!
12. Beyoncé, Jay Z & Blue in Beverly Hills — Nov. 11
OMG Blue in a top knot? Yasss!
Blue has grown up to be an adorable toddler! We're swooning over this photo of her playing on the beach.
Looks like Blue is taking a walk in mom's shoes...literally.
15. Beyoncé & Blue
There's nothing like being cuddled up in mom's arms.
Blue is looking all kinds of adorable! Look at that left hand go! LOL.
17. Blue On The Big Screen
Bey & Jay look at Blue during a video played at an "On The Run" tour stop. How precious!
18. Pardon Blue's Back
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19. Jump Around
Bey & Blue share an adorable moment on the trampoline. Hello summer!
20. Rocking Some Cute Ponytails
Blue Ivy was spotted with a new 'do! Bey & Jay's mini-me was holding on to her father during a little day stroll.
21. Strolling With Mom & Dad
Blue, Jay and Bey all spotted in East Hampton.
22. Blue Has A Manicure Day With Mama Bey
"Me and my Blue, and my Blue Blue, riding🐝"
23. Hanging Out With Mom
Baby Blue is walking to the door, and it looks like Bey is trying to keep up!
24. Trying On Some Heels
Will Blue be slaying a performance in the near future?
25. Holding On To Mom
Blue looks like she has something to say to Bey.
26. Playing A Game Of Tennis
Blue walks on the tennis court.
27. Cuddling With Mom
Blue & Beyonce have some much-needed cuddle time.
28. Blue Ivy
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29. Bey & Blue Take A Stroll
Doesn't Blue look adorable with her colorful dress and cute hair ribbon?
30. The Carter Lounge Together
The family was seen out and about.
31. Jay Z Carries Blue While Bey Looks On
Jay carries Blue in his arms.
32. Leading The Way
Blue Ivy looks too cute with her bowler hat and Mama Bey watching from behind. She's really growing up!
33. Out On The Town
Blue Ivy & Momma Bey enjoy some much deserved time off in Spain.
34. Traveling With Mom and Dad
Blue is used to traveling with Mama Bey and Poppa Jay, but she also looked a little flustered at some moments. It's ok, baby Blue!
35. A Day At The Park
Poppa Jay Z lets Blue Ivy have her way with the bouncy horse.
36. It's A Family Affair
Beyonce, Jay and Blue jetsetting in Dublin.
Blue dressed up like a hipster and plays a quick game of peekaboo! How adorable!
38. OMG It's Blue's Beautiful Face!
FINALLY! We get to see how beautiful Blue is! Look at the adorable headband! "Blue 💙"
39. Blue Ivy
Life's a beach!
40. Brooklyn Stand Up!
"Beyonce & Blue"
41. Blue Ivy's Got Her Own iPhone
"Momma, what's your password?"
42. Beyonce's Lazy Day With Blue
"Momma, I asked you for your password!"
43. When Blue Ivy Takes Your Phone, Beyonce Be Like...
"Fine, I'll go ask Daddy!"
44. Blue Ivy On Tour
"Bey & Blue"
45. It's Playtime
Beyonce & Blue take some time out to play.
46. A Chilly Day In NYC
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47. All Bundled Up
The royal family makes their way to their fancy car.
48. Kisses From Dad
Blue's all bundled up, getting love from Daddy.
49. Blue At The White House
Blue Ivy's taking after mommy and writing a letter.
50. Blue Loves Bo
The White House pup, Bo is showing Blue Ivy some love.
51. The Carters At The White House
Check out the royal family checking out the scene at the White House.
52. It's Christmas Time Again
Blue and Bey checking out the White House Christmas tree.
53. Blue Lovin' Bo
Blue Ivy, dressed like a Princess, showing Bo some love.
54. Like Father, Like Daughter
Blue playing dress up with Daddy's hat.
55. Fun Times With Mommy
Blue Ivy spends some QT with mommy.
56. Mommy & Me
Blue and Bey take a break for some snacks.
57. Silvery Blue
Beyonce carries Blue, while the adorable toddler rocks a metallic jacket that we want and need.
58. The Holy Grail
Blue, Bey & Jay
59. One Big Happy Family
"#miami #newyear #2014"
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61. Blue & Daddy In A Blue Jacket
"Jay and Blue 💙 #NewYear #2014 #Miami"
62. Hold On To Me
"Happy New Year Mommy!"
63. Dora Dora Dora The Explorer
"Beyoncé, Blue and Dora the Explorer"
64. Daddy & Bey
"Look over there Blue, you own that too."
65. Blue's Big B-Day
"Mommy make sure they can only see the back of my head."
66. Painted Faces For Blue's Bday
"Let me get down Mommy, I wanna play!"
67. Kisses From Mommy
Beyonce and Blue prepping for Momma Tina's Masquerade Ball
68. Talk To The Hand!
Beyonce, Jay Z and Blue Ivy were spotted leaving Joey's restaurant in Miami, on January 8th, and Blue had a message for the paps! Talk to the hand!
69. Me & My Daddy
While Beyonce's arm rested, Jay carried Blue from Joey's restaurant, in Miami on January 8th.
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"I'm ready to slay right along with you, Ma!"
71. Imagine The Sound Of This Lullaby
A newborn Blue Ivy gets serenaded by her superstar mother.
72. Don't Mess With Blue!
Every now and again, Blue Ivy reminds you...she is her father's child!
73. All Gold Everything
Blue Ivy takes after her dad's swag. The inseparable duo were spotted in South Beach, Miami illuminating the streets outside their hotel with their yellow luster!
74. All Of The Lights!
"Mommy! All the pretty colors are so blinding! I'm...just..so..overwhelmed! When's my shot coming?! When's my shot coming?!" Blue plays on set with Bey at her 'Blow' video shoot.
75. Hey Blue!
"I can be happy sometimes, see?"
76. Blue Ivy With Daddy
"Why are we clapping, again? I'm not in the shot."
77. Jay Z Tries To Get Blue To Listen To "Magna Carta Holy Grail"
"Daddy, I'm more of a Nas fan."
78. Stepping With Mom
"Wait, Ma. I want the camera to see all angles of this sick dress!"
79. Splashin' & Playin'
"Mom, this water is clean, right? Because I'm not trying to splash in water I can't trust."
80. Beyonce Discusses Important Matters
"Mommy, I completely get it. Yes, I promise to watch the throne."
81. Mommy's Hugs
"Ok, Ma. I love you to pieces, but I like oxygen too." Bey may be the Queen, but this scene from her video "Blue" makes it look as if she can't get enough of being Mom.
82. Blue Ivy Twirls
"Aaaahh, I'm having so much fun not thinking about anything...wiippeee...oh, wait...getting a little sick."
83. Just So You Know...
"I run things. Don't get it twisted."
84. Mommy & Me Loungin'
"Oh, Mommy, I'm so tired of seeing the wigs you snatched last night all on our floor. It's so exhausting. Like, when're they getting picked up? Not now? Oh. Ok."
85. A Kiss For Blue
"Mommy, let me sleep, dang!"
86. Slurpin' On That Milk...Slurpin' Slurpin' On That Milk
"Mommy, gimme that bottle!"
We could watch this adorable GIF of Blue Ivy nonstop forever!
88. Jay Sneaks In Kisses
"Dadddd! Get..Away!..I don't want...No, ugh..No kisses!"
89. Blue Stares Back...
"Hey! Who's that?!"
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"No, really, who are you? You're getting to close."
91. Blue and Bey Out For Lunch
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92. Blue Is One Tough Cookie
"Ma, please let me just kick them in the face. Like, please, I can't see through all these lights."
93. Blue Jetsets With Jay
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94. Beyonce Keeps Blue Covered
"Mommy, I think you forgot my feet. I'm cold right now. Are we inside?"
95. Beyonce LOVES Her Blue
Look at that face, how could you not kiss it?!
96. Blue Swings With Mommy
"I like the swing, this is nice, Mom--Oh, I'll let you pose for that shot."
97. Blue Decked Out In Pink
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98. A Hot Pink Summer
"Doesn't my mom look absolutely amazing? I know you're hating right now."
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100. Mean In Green
"I'm going to be just as tall as you soon, Mommy! And, by soon, I mean tomorrow."