My Bank Account Is Always In Overdraft
Many Canadians have an overdraft on their personal bank account as a means of insurance against their account getting overdrawn which can result in expensive non-sufficient funds (NSF) charges from their bank. However, too many consumers rely on their overdraft and don’t keep track of their budget to make sure they have enough income each month to cover their expenses. Sometimes having an overdraft can make it too easy to spend money that we don’t actually have.
The interest charged by banks to those carrying an overdraft can range as high as 20% so it can be a very expensive form of credit.
If you find that you are carrying an overdraft balance and running out of money between pay periods this can be an early warning sign of future financial difficulties. Not having enough money on hand to meet your expenses can lead to further debt as you may be tempted to seek out new sources of credit to offset your cash flow troubles and maintain a standard of living you can’t afford.
Rather than get deeper in debt we recommend that you track your income and expenses to find out where you are spending your money. This will allow you to identify areas where you can reduce expenses. You need to understand where your money is coming from and going if you are going to try to fix the problem. If you discover that your income is not sufficient to meet your basic cost of living and pay your creditor payments then it’s time to seek the guidance of a professional before the situation gets any worse. A Licensed Insolvency Trustee can review your financial situation and help you determine which option is best for you.
Powell Associates Ltd. is a Licensed Insolvency Trustee (LIT) focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses. We offer free consultations to review your personal financial situation and practical debt resolution options. Contact us to discuss your situation over the phone or book an appointment to meet us face-to-face in Saint John, Moncton, Fredericton, Charlottetown or Dartmouth - it's your choice.