How to pay these overdraft fees without sacrificing my paycheck this week?

Question

I had a financial emergency and needed to go overdrawn in my checking account. As it happens, all of the transactions that went through when the checking account was positive have also been hit with the $35 fees. So now, I have over 5 separate overdraft fees. I already tried calling the bank to reverse any of the fees, but they wouldn't.

If I deposit my whole paycheck, I'm going to only have less than half of it to pay my other bills.

Any ideas what I can do to take care of this?

Answer 1

You might explain the emergency with the bank.  Otherwise you may have to work with your creditors on catching up with them. Expalin the emergency to them.

Answer 2

Sometimes emergencies do arise and you need the funds immediately. Since your account is already overdrawn, you need to pay back the bank immediately to avoid any further damage to your account or services.

If you need your pay cheque to cover your emergency expenses but have to pay the overdraft and NSF charges, instead of depositing your pay into the bank why not apply for a payday loan. These services are meant to help individuals with immediate financial need. If you are able to pay back what you borrow on your next payday then I would advise taking out this short term loan to cover your expenses now.

Answer 3

If you delay in making your account positive, then the bank will eventually report you to CheckSystems or TeleCheck, and you won't be able to use your checking account at participating merchants.  They will probably cancel your ATM/Debit card, too, if you have one.

For now, you're going to have to bite the bullet and pay back those fees.  To save yourself from this in the future, change your checking account to a small community bank or credit union where they don't engage in "priority posting" and other practices that result in your being charged so many overdraft fees.

Also, you can usually open an overdraft line of credit or use a savings or credit card account to cover overdrafts at a credit union.  Mega banks don't generally offer these options because it cuts into their bounced check fees.

And, start an emergency account to avoid this problem in the future!  It's critical that you have from $500 to $1000 set aside for the next financial emergency.  Just save $10 or $20 per week until you have your emergency fund.  And, if anyone sends you a check for a present or a refund, etc., immediately stash it away to build your emergency fund quickly.

Emergencies aren't unpredictable - they're just unplanned.  Be prepared the next time!

Answer 4

Deposit your check. Then cut back and I mean Ramen noodles type cutting back. Then when you deposit your next few checks you should be back on track. It really is about cutting back no steak no extras just save.

If it was an emergency then your overdraft did help you because you wouldn't have had any money then. The fees kind of suck, but at least your emgerency didn't double cause you couldn't get money.