The lure of the constant stream of cash being available in your personal account may seem like a good thing – until it comes time to pay it back. With no end date, super high interest rates and the ability to increase an overdraft relativity easily, these banking products are one thing anyone trying to save should stay away from.

The problem is that people find this cash cushion reliable, can continue to extend their overdraft rather than decrease their spending. Here are some ways to avoid that trap and stay cash happy.

 

1. Ask your bank if you have an overdraft attached to your account. If so, ask for it to be removed.

2. Budget! Don’t let your account go below a zero balance.

3. Check your bank balance regularly – daily if you have to.

4. Make sure you have the right bank account that does not allow an overdraft to be attached.

5. If you have a credit card, consider increasing its limit instead (is its interest rate lower)? Then stick with it.

6. Consider the effect your credit rating. Limit or close your overdraft as soon as you can to stop potential overspending.