Introduction
Overdrafts can be a lifesaver when you’re short on cash, but they can also quickly become a financial burden if not managed properly. It’s important to understand what overdrafts are, how they work, and how to prevent them from happening in the first place. In this article, we will explore the ins and outs of overdrafts, and provide you with some valuable prevention tips.
What is an Overdraft?
An overdraft occurs when you spend more money than you have available in your bank account. Essentially, it allows you to continue making transactions even when your account balance reaches zero. Banks typically charge a fee for allowing overdrafts, either per transaction or as a daily fee.
