Overdrawing a checking account happens more often than people like to admit. A few extra purchases, a bill you forgot about, or bad timing between expenses and payday and suddenly your balance drops below zero.
The good news? An overdrawn account isn’t the end of the world. If you act quickly and take the right steps, you can fix the problem and avoid repeating it in the future.
This guide walks you through exactly what to do no banking background required.
Step 1: Learn How Much the Overdraft Is Really Costing You
When your account goes negative, the balance you see isn’t the whole story. Most U.S. banks charge an overdraft fee every time a transaction goes through without enough money in the account. That fee is often around $30 per transaction, though it can vary by bank.
Some banks also charge:
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Multiple fees if several transactions overdrew your account
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Returned payment fees if checks or automatic payments bounced
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Additional charges if your account stays negative for several days
Because policies differ, it’s smart to check your bank’s fee schedule or call customer service to understand exactly what you owe. Whatever fees apply will be added to the negative balance you’ll need to cover both.
Step 2: Stop Using the Account (For Now)
Once your account is overdrawn, every new transaction can make things worse. Until your balance is back above zero, it’s best to pause all non-essential spending from that account.
That includes:
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Debit card purchases
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Online subscriptions
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Automatic bill payments
Each transaction that hits an already negative account may trigger another fee.
Also keep in mind: when money is deposited into an overdrawn account like your paycheck the bank will usually apply it first to the negative balance and fees before you can use any remaining funds.
If covering the overdraft with your next paycheck would leave you unable to pay for essentials like rent or groceries, you may want to temporarily cash your check instead of depositing it, or quickly update your direct deposit instructions.
Step 3: Figure Out Your True Balance
Before fixing the problem, you need a clear picture of where your money stands.
Balancing your account means:
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Listing all recent purchases
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Including checks you wrote that haven’t cleared yet
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Accounting for pending debit card charges
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Adding overdraft and returned payment fees
You can do this by:
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Reviewing your online banking transaction history
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Using a check register or spending tracker if you keep one
Simply checking your current balance isn’t enough, because pending transactions may not have posted yet. Writing everything down helps you avoid surprises and shows exactly how much money you need to deposit to get back into positive territory.
Step 4: Get the Balance Back Above Zero as Quickly as Possible
Time matters. The longer an account stays negative, the higher the risk of extra fees or even account closure.
Here are practical ways to cover the shortfall:
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Deposit cash if you have it available
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Put aside a portion of each paycheck
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Sell unused items you no longer need
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Borrow money from a trusted friend or family member (if possible)
Banks may start charging additional fees or restrict your account if it remains overdrawn too long. In some cases, accounts can be closed and reported to consumer banking databases, making it harder to open a new account elsewhere.
Step 5: Call Your Bank and Ask for Help
This step is often overlooked but it can save you real money.
Many banks are willing to waive an overdraft fee, especially if:
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It’s your first overdraft
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You rarely overdraft
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The account is in good standing overall
Call customer service, explain what happened, and politely ask if any fees can be refunded. There’s no guarantee, but respectful communication goes a long way.
If the amount owed feels overwhelming, ask about repayment options. Some banks will work with you on a payment plan rather than immediately escalating the issue.
Step 6: Prevent Overdrafts Going Forward
Once your account is back in the clear, take a few simple steps to avoid ending up here again.
Track Your Spending Yourself
Don’t rely solely on your bank’s displayed balance. Transactions don’t always post immediately. Keeping your own running total even in a notes app helps prevent accidental overspending.
Set Up Low-Balance Alerts
Most banks let you receive text or app notifications when your balance drops below a certain amount. It’s an easy safety net.
Consider Opting Out of Overdraft Coverage
If you opt out, transactions that would overdraw your account will be declined instead of approved with a fee. While declined payments can be inconvenient, they’re often cheaper than overdraft charges.
Link a Backup Account
Some banks allow you to connect a savings account or credit line to your checking account. If funds run low, money is automatically transferred. Any transfer fee is usually much lower than an overdraft fee.
Common Questions About Overdrawn Accounts
Do overdraft fees happen instantly?
Sometimes. Some banks give you until the end of the business day to add funds and avoid the fee, but not all do. It’s best to assume fees apply immediately unless your bank says otherwise.
Can banks keep charging fees if I don’t use the account?
Many major banks have reduced or eliminated extended overdraft fees, but policies vary. Check your bank’s rules to be sure.
Can I close an account that’s overdrawn?
Usually, no. Most banks require the balance to be brought back to zero before allowing the account to be closed.
The Bottom Line
Overdrawing your account is stressful but it’s fixable. Acting quickly, understanding the fees, and communicating with your bank can limit the damage. Once you’re back on solid ground, a few small habit changes can help make overdrafts a thing of the past.
A little awareness now can save you a lot of money later.
Please take a look at this as well:
Cashless Society: Pros, Cons, and What It Means for Everyday Money
