An overdraft happens when you spend more money than you have available in your account. While it may seem convenient in the moment, overdrafts can quickly lead to extra fees and added financial stress.

Here are a few ways overdrafts can impact your wallet:

Overdraft fees can add up fast. Even small purchases can result in fees if your account balance falls below zero.

Multiple transactions may trigger multiple fees. Several purchases in a short period of time can create a chain reaction of overdraft charges.

It can make budgeting harder. Unexpected fees can throw off your monthly budget and make it more difficult to stay on track financially.

Negative balances may affect future banking options. Repeated overdrafts could impact your account standing over time.

The good news is there are simple ways to help avoid overdrafts:

• Set up account alerts to monitor your balance
• Keep a small cushion in your checking account
• Track automatic payments and recurring expenses
• Review overdraft protection options available through your bank