When you do not have cash on hand and you are using a debit card, it can seem like you have endless amounts of money because you do not see the money in front of your face. However, overspending or going into overdraft on your bank account can happen quite easily if you are not careful about it.
Can you get an overdraft with a debit card?
This is no longer possible when you use a debit card. Making this mistake can happen quite easily with cheques but can also happen with even more frequently with debit cards. If you use cash, the balance is always displayed when you take money out of the ATM. This makes it possible for you to be completely conscious of what money you have and what you don’t.
Other considerations for getting an overdraft
An overdraft can happen when you least expect it. If you have a long day of errands and shopping to do, you can be too busy or too distracted to keep track of how much money you have in your account. When you make a purchase and find that you do not have the funds to cover your purchase. You have slipped into an overdraft.
Overspending on your account can be quite costly. The interest rates for making this mistake are quite high and certainly not worth doing. In addition to high interest rates, you may be charged a fee for going beyond your funds. This is a double penalty and one that should be avoided.
Better Safe Than Sorry
If possible, sign up for an account that will not allow you to overspend. This way you are totally in the clear and will not have to worry about making that mistake.
Using debit cards are a part of our modern world and are very handy. However, you should use caution and use the card judiciously so you are not in the position of having to pay charges for making the mistake of overspending.
You work hard for your money. There is no point in giving up your hard-earned cash to pay for silly miscalculations. Make sure you choose wisely and use a card that will not penalise you and will keep you on track.Back to top