Wouldn't it be cheaper to use a payday loan?

I overdrew my account. Yup, tell me how much it is my fault. I already know. Not only did I overdraw my account, but money that I thought I was getting didn't come in (yup, my fault again I know) so every single transaction is being charged $29. So far we are up to 12 transactions. Whoo hoo some sort of record for the bank I'm sure. I will ask on monday for them to refund the fees but know they will only do one or two. In the future, if I forsee something like this happening again (which I'm sure it will) wouldn't it be cheaper to just go to a payday loan place? Aren't there fees like $15 for every $100? Oh, and I don't need the lecture about not overdrawing the account. I know how much more perfect everyone else is than me. Thanks!

Wouldn't it be cheaper to use a payday loan?

This isn't the answer you're looking for because I have no idea how loan sharks work. But, If you have a credit card, you can contact you bank (I have seen this with BofA and others ) and ask them for overdrawn protection. If your account goes to negative, the overdraft kicks in, and take it out your credit card... This isn't free, but it isn't $29 per transaction either.

Or, if you have some extra money, you can put it in a savings account, and keep it there as a overdraft protection account, from which the funds are taken out of.

Hope this helps :)

Wouldn't it be cheaper to use a payday loan?

A payday loan can be useful in a pinch but the interest rates are outrageous. If you need to get a payday loan, make sure you can pay it off completely when it is due. I have had friends who had to keep taking out fresh loans to cover the old ones and ended up spending a fortune in fees.

This is only a cheaper option if you know you can pay it off quickly and you know you are facing a lot of overdraft fees.

There is a commercial running on tv right now for a loan service called CashCall. If you read the fine print, it says the interest rate is 99.25%.

I have an account with Washington Mutual and they give me a free overdraft each year. If I don't need it, it rolls over so I would have 2 the next year...and so on. You might check into getting an account with them if overdrafts are an issue from time to time. Save some fees.

Another thing to keep in mind: if multiple transactions will hit your account on the same day, the bank is allowed to clear them largest to smallest. Example: you have $100 in your account. You have three transactions hit that day: $101, $5, and $20. Instead of clearing the two small ones and letting the third transaction put you into overdraft (one overdraft fee), they will clear the $101 first which puts you over (three overdraft fees.)

See if you can argue the timing on some of the transactions to save some fees if possible. If you can prove that some of the smaller transactions should have cleared before you overdrew, it may help. Worth a try!

Wouldn't it be cheaper to use a payday loan?

A payday loan is helpful in emergencies for short term difficulties, they are not a long term solution and they do cost a lot.

If done correctly they could help you, but it's definitely not a long term, even a few months, solution to problems.

If you need more information, including some good quality payday lender you can go to http://www.instant-online-payday-loans.i...

Wouldn't it be cheaper to use a payday loan?

No lecture..... I actually have another option for you. Have you ever heard of overdraft protection? This is a great alternative to overdraft fees. All it is is a small amount they attach to your checking account. This amount is only used when the debits on your account exceed the available funds. So in plain English...if you have $200 in the account plus $500 in overdraft protection then you have $700 available. But there is a fee involved. It is a monthly fee probably like $5 bucks. Also there is also finance charges just like a credit card. You pay the amount in full no finance charges.

In order to get this protection on your account you have to apply and get approved. It is based upon credit.

Payday loans should only be used in urgent emergencies like a emergency hospital visit or your car broke down. Remember to borrow only what you can realistically afford to pay back.

I hope these options help. I have overdraft protection and I love it. It beats paying $32 per overdraft and the $8 per day fee because your account stays negative longer than 4 or 5 days. These fees can add up.

GOOD LUCK!

Wouldn't it be cheaper to use a payday loan?

overdraft protection is what you need.......no lecture on you overdrawing your account but why are you sure it will happen again......you need better planning.