Have you ever been caught off guard by your overdraft fees?
Don’t feel bad. Like many of us, you probably weren’t aware that you had overdrawn your checking account until you saw your bank statement. These fees can have a profound impact on the financial situation of average Americans, especially if you have incurred multiple overdraft transactions.
You make one little misstep and now you have to pay your bank about $35 for each transaction. On top of that, you need to repay them for covering for you. With banks collecting about $34 billion in overdraft fees from Americans’ pockets in 2017, it’s up to you to stop them from ruining your finances.
Thankfully, we have a rapidly growing cash advance app industry. Now, you can choose from a myriad of apps that will help you stop overdraft fees. Some can manage your finances for you, while others let you borrow cash for little to no cost. There are even apps that can offer a bit of both.
Dave
Dave helps you make better financial decisions. For $1 a month, it oversees your finances and tracks your expenses. It will let you know when you are close to making an overdraft transaction. Not to mention, it lets you borrow up to $75 in cash for free when you don’t have enough to get through to your next paycheck.
Pros:
- Dave lets you borrow money for free
- Takes note of expenses
- Interest-free loans with no credit-check
- Plants a tree for every tip you leave
Cons:
- The app isn’t free ($1 monthly fee)
- Only users with steady paychecks can take out a loan
- Users should pay the money they borrowed on the next payday
PocketGuard
Learning how to budget your money should be a priority if you want to stop overdrafting. It might seem impossible, but with a little help from PocketGuard, you’ll be able to accomplish such a feat. Once you link the app to your bank account, you can keep track of your spending habits. Since it shows your account balance, you can prevent overspending and overdrafting.
Pros:
- Basic functions are available for free
- Has great budgeting features, perfect for users with modest finances
- The app is user-friendly, and it’s not difficult to set up an account
Cons:
- The app isn’t ideal for freelancers and anyone with an irregular income
- Premium functions cost about $4 per month or $20 per year
- PocketGuard can’t assist couples who tie their finances together
MoneyLion Plus
Anyone who lives from paycheck to paycheck will struggle greatly when they encounter unforeseen expenses. Instead of incurring overdraft fees, you can borrow money from an app like MoneyLion Plus. It can loan you as much as $500 at 5.99% APR. Plus, it won’t require a credit check.
Pros:
- MoneyLion Plus comes with features that help you save money
- The app lets you borrow up to $500 for a low cost
- Users can reduce fees by logging in every day
Cons:
- The app has a $29 monthly fee
- Users also need to set aside $50 per month for their investment account
- MoneyLion Plus can potentially cost more than an overdraft fee
These three incredible apps help you manage your finances and prevent those pesky overdraft fees. Of course, they can only serve as a guide. It’s ultimately up to you to decide and stay committed to financial planning. Yes, your ability to manage your money wisely is your best tool against overdraft fees. But it also helps to have an app that you can turn to for extra cash during tough times.