How to avoid the charges imposed by bounced check laws

Nothing spells trouble more than a bounced check. An overdraft out of your bank account can be a costly mistake that can even have some legal ramifications. A bounced check is far more likely in this day and age. Unfortunately, more and more banks are clamping down on people who write bad checks.

The sad part about the whole scenario is that most people who bounced checks do not do so intentionally. In fact, most of us avoid making this costly mistake at all costs. However, the introduction of the Mac machine has many disorganized people reaching a bounced check record.

The problem with the whole Mac machine thing is that many times there are two individuals using the same account. Add in automatic bill paying each month and online shopping and you can be well on you way to a bounced check or two or even more. This can be financially devastating for anyone who lives from paycheck to paycheck.

Unfortunately, many families do live from paycheck to paycheck. One overdraft can set off a chain of events suitable for a Greek tragedy. Let’s say one person who uses the account pays the electric bill in person without knowing that his wife has already mailed a payment. This small mistake can lead to an overdraft in the account and consequently, a bounced check.

The bounced check racks up a non-sufficient funds charge from both the electric company and the bank. In a couple of days, the check is reintroduced to the account and fails to pass once again. This one bounced check has bounced twice, doubling the non-sufficient funds charges.

The problem lies in the simple fact that many families can’t afford to be poor. They can’t live from paycheck to paycheck without the risk of a bounced check here and there. This same group of individuals also discovers that their credit is lacking because they are playing catch-up with NSF fees and past due bills.

The bad credit leads to bad credit scores which, in turn leads to higher interest rates when applying for loans and lines of credit. Unfortunately, these families have little choice but to accept higher interest rates. A purchase that costs a person who has a comfortable income and good credit relatively little costs a struggling family more in the long run.

One bounced check is not going to tailspin a family into complete and utter disarray. However, it is a sign that they may want to cut down on spending. They want to keep a detailed record of their spending and most importantly, they want to communicate with one another to avoid financial trouble.