3 Things You Should Avoid in 2020- Overdraft Fees, Payday Lenders and Scams

Shruti from Team Brigit

We can all agree that 2020 has been a difficult year so far. Brigit is here to help you save your hard-earned money from payday lenders, bank overdraft fees, and scammers during this coronavirus pandemic.


Overdraft fees


Overdraft fees are incurred when you spend money than available account balance in your checking account. Banks charge you a hefty fee (an average of $35) for every time you make a transaction when your account balance is low. They usually don’t notify you about these fees or your balance and can be charged this fee at least 3-4 times a day. Although some banks limit such fees to three or four transactions per day, this can add up to $105 in fees in a day ($35 x 3). During a pandemic when you are trying to save every penny to make ends meet, these fees are outrageous.


The federal regulators have encouraged banks to waive off overdraft fees during this time of financial distress. Many big banks have agreed to pause overdraft fees for 60 to 90 days. However not all banks have updated their overdraft fee policy. Take a look at the list of banks that are offering temporary relief in our article, Banks that have paused overdraft fees.


We started Brigit in 2016 with a mission to save millions of Americans from unjust overdraft fees. Ever since we launched we helped 1,000,000+ Americans track their account balance and saved our members from $50,000,000+ in overdraft fees — an average of $500+ per person.


Payday lenders


If you need to borrow a small-dollar loan stay away from predatory payday lenders and try exploring other options. There is no such thing as good or best payday loan offers. In fact, payday lenders are banned in some states.


According to a 2016 Pew Research study, most borrowers who incur payday loan debt end up paying more in fees than they borrowed. The Pew Research states that the average payday loan borrower spends an average of $520 in fees on a loan of $375. That means the average annual interest rate of payday loans is a whopping 391%. That’s about 10 times more than you’ll pay on any credit card or personal loan you qualify for.


To stay informed and learn more about payday loans make sure to read the following articles.


Beware of instant payday loans and fast cash loans


Steer clear of payday loans without a credit check


Coronavirus Scams


As many Americans are trying to get access to medical supplies, affordable health insurance, vaccines, test kits, and stimulus checks; scammers are gearing up to take advantage of this coronavirus crisis. They are adapting their messages and tactics to the new medical and economic concerns that arise.


According to the federal trade commission, coronavirus scams have cost more than 18,000 Americans a total of $13.4 million since the beginning of the year. If you received a call or an email asking for your personal information like Social Security, bank account or credit card number, do not respond. The government will never call to ask for money or your personal information.


Coronavirus Scams – Don’t Be Fooled

See more posts from Money Hacks

Karla Lopez
Every borrower and financially aware individual knows how important a credit score is. It is one of the ...
CJ Douglass
We’ve all been there. We’re at a restaurant or out shopping and we realize it’s cash only! We ...
Shruti from Team Brigit
There’s a big demand on the dark web for personal information that can be used to commit identity ...