If you have an overdraft on your bank account, you need to act quickly to rectify the situation. If you don’t resolve it right away, you could find yourself in a downward spiral of fees and bounced checks. You could also damage your credit.
Most banks charge a fee if you overdraft your account, usually around $25 to $40. You’ll be responsible for paying this in addition to the negative balance on your account. You may also have to pay a returned cheque fee. These fees can add up quickly. You may find yourself depositing a paycheck and the entire thing covering your overdraft balance and fees.
If you have overdrawn your bank account, thebalance.com suggests these five steps to rectify the situation.
Stop using the account
You should immediately stop using your current account until you have sorted everything out. This includes any non-essential spending. Read more