Is a Paycheck Advance Cheaper than Overdraft Fees?

- Is a Paycheck Advance Cheaper Than Overdraft Fees? -

Anyone who has ever bounced a check before knows what an unpleasant and costly experience it is. In addition to the ignominy you have to endure from merchants who regard you as a deadbeat, you also face exacerbated financial difficulties from outrageous overdraft fees, bounced check fees, and more. In most cases, the costs of overdrawing your account are significantly higher than the costs associated with a paycheck advance. We’ll compare and contrast the costs associated with the two in this post.

The Endless Fees

Overdraft fees are just one of the many charges consumers will face when they overspend the balances of their bank accounts. Here is a list of all the charges that usually apply in such situations:

• Overdraft fees. Overdraft fees are assessed whenever a customer spends more than he/she has in his/her bank account. Some banks assess multiple overdraft fees, meaning the customer will be hit with overdraft penalties for every purchase or check he/she made once the account was overdrawn. Overdraft fees are big business—banks and credit unions charge roughly $17.5 billion in overdraft fees per year.
• Bounced-check fees. In addition to a general overdraft fee, some banks charge customers for each check they write that bounces.
• Merchant bounced-check fees. The bank is not the only entity consumers will have to reckon with when they bounce a check. Most merchants also assess a bounced-check fee of their own, in addition to what the bank charges.

The Alternative: A Paycheck Advance

A smart way to avoid overdraft fees is to take out a paycheck advance when funds get low. Before you are in danger of overdrawing your checking or savings account, apply for a paycheck advance ASAP. Instead of the outrageous multiple fees associated with overdrafts, paycheck advances have only one finance charge (varies by lender). For example, you might pay $15 for every $100 you borrow (varies by lender). Having sufficient funds in your account will also save you all of the penalties you would’ve faced by bouncing checks. In most cases, then, a paycheck advance is a more practical and less expensive option than overdrawing your account.

Title: Is a Paycheck Advance Cheaper Than Overdraft Fees?
Description: Overdraft and bounced check fees have grown increasingly outrageous. In most cases, a paycheck advance is a much cheaper and more responsible alternative.