How To Recover When Your Bank Account Has Been Overdrawn

If you have ever overdrawn your account it is very important that you recover the account. Keep reading to find out How To Recover When Your Bank Account Has Been Overdrawn.

If you do not resolve it immediately, you can find yourself in a pile of debt, outstanding balances, bounced checks, and damaged credit.

Recover Your Bank Account

We have all been there, you go over budget on a few things this month and now your account in overdrawn. Things can get messy quick unless you take the right actions to correct your situation.

Stop Using the Account

You should stop using your checking account until you have sorted everything out. This includes stopping any non-essential spending.

You may want to consider cashing any paychecks or diverting your direct deposit to an account not linked to the overdrawn account. Banks and Credit Unions have fees they will charge when you overdraw an account and they will recover the balance when your paycheck hits. This is especially important if you have to pay bills, buy food, medication, and other essential goods.

Additionally, you should look into following these steps:

• Stop all automatic payments from the account for example transfers from your checking to a savings account.
• Put your subscriptions on hold to have some extra capital.
• Some gym memberships will place holds on your account so that you won’t have to pay for the time being. Consider contacting your gym provider for more help.

Balance Your Account

The next step you should do is to evaluate your account situation. This will give you an idea of how much you need to get your account back to normal.

Simply log into your account online and monitor your spending, checks you’ve written, the direct deposits you’ve set up, and other outstanding payment you may have. Some online and mobile banking providers make it very simple to navigate your spending.

If you don’t regularly balance your account, you should start today. Start by tracking your daily spending and mark them out when they are debited from your account.

• Go back as far as possible to see where the first mistake was made.
• An overdrawn account can is subject to more fees than a balanced account, so act quick.
• Determine how much you need to bring your account back positive.

Bring Your Account Balance Positive As Soon As Possible

Once you stop paying for non-necessities you can deposit the extra cash into your overdrawn bank account to make it positive. You may also consider selling items you don’t need to earn some more cash to deposit.

More often than not, most banks will waive the first overdraft or returned check fee. Contact a customer service representative to help you with your account.

• It never hurts to ask to have an overdraft fee reversed. This makes it easier to recover financially since you will owe less money.
• Understand all the fees your account may be subject to. Some banks charge a fee everyday that your account is negative.
• Simple ask for help when possible by borrowing from a friend or family member.

Speak to Your Bank

Contact your bank as soon as possible to set-up a plan to get over the overdrawn bank account. This is especially important because some banks report to Chexsystems. Which is a database for financial institutions to record your financial history. Furthermore, it can be harmful to your credit score.

• The bank may set up a payment plan for you to pay the amount you owe back. Additionally, they may just close your account outright. Either way you will still have to pay the balance off.
• Be polite and honest with your bank in order to deal with the problem and find the best possible solution.

Monitor Your Account More

You can start being financial responsible by setting yourself a budget to prevent this from happening again. Furthermore, you can keep tabs on yourself by checking your account balances and transaction history more often. This is made especially easy by mobile bank applications you can download on your phone.

However, keep in mind that some bank accounts don’t deduct transactions from your account balance immediately because it hasn’t cleared. Just as we mentioned, when balancing your checking account, mark out transactions when they deduct from your account.

Conclusion

It is easier to spend money than make money. When you have an overdrawn bank account you are subject to more fees that can drag your account balance further down. You should begin taking actions to correct your negative balance immediately.

If your financial history is clear you should take advantage of a bank promotion or amazing bank rate. However keep in mind that certain institutions report to chexsystems and they may choose to deny you.