By Dan Danford
Overdraft protection is a convenience that keeps us from being embarrassed when we make a mistake in our checkbook. Most of us wouldn't mind paying a fee when that happens occasionally. There are a group of customers who are chronic overdrafters (new word?), and they spend a fortune on overdraft fees. For them, opting out could be an answer, but I doubt they will do it. That would mean they'd have to stop spending when their account is empty, and most will reject that sudden and violent stop! Of course, what really happens with these chronic overdrafters is that the charges just keep adding to their balance until it become an uncollectible debt.
For most of us, the overdraft charges aren't a burden because we don't incur them. This is another case of government intervention because of an irresponsible few people. Everyone should consider the right approach for their family, but it's a non-event for most of us.
Here's a column from The Houston Chronicle that explains it all, and what some options are for those who are thinking of opting out of overdraft protection.
http://www.chron.com/disp/story.mpl/business/buggs/6651156.html
I have an overdraft plan that simply drafts from my savings when I've overspent, but I do pay a $10 fee for that. I think that's a small price to pay. I stay on top of it, though, by checking my balance online every day.
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