One of my clients came in for budget consultation.  She informed me that she had been paying bills with her overdraft protection.  This had been going on for over 6 months.

It got me to thinking about the pros and cons for having overdraft protection.

There are a variety of overdraft protections available to consumers at banks and credit unions.

One type of overdraft protection is courstesy pay.  They will pay items that come in when funds are unavailable.  The bank or credit union will charge you a overdraft fee that can be $25 and up.

Another type is the overdraft that is a line of credit.  You are not charged with the overdraft.  You pay a low interest rate on the amount that is used to cover the amount overdrawn.  These lines are based on your credit score.

Overdraft protection was intended for the occasional mistake on your addition in your check register or forgetting to put an atm withdrawal from your spouse.

Overdraft protection was not meant to be used as a way of life.

It is even beneficial if you have an emergency come up instead using a check cashing place to come up with the cash.

However, using your overdraft protection as if it were available cash in your account can be very dangerous.

Like my client who is now dependent on using the overdraft protection to make ends meet there are many people in America who are also in the same predicament. 

The habit becomes hard to break once you get started.

You need to start using a budget and balancing your check book each week.  To keep up with your transactions.

Are you addicted to your overdraft protection???

To get a copy of my new book click www.sexliesandcredit.com.

Miss Rene'