If you own a debit card or have a checking account open, there is most likely some type of overdraft protection program available for your account.

There are upsides and downsides to overdraft protection programs. Overdraft protection's main purpose is to prevent you from being charged overdraft fees in case you use more money that you actually have in your account. For example, let’s say you’re at an electronics store purchasing a new game system. The item costs $150 but you only have $100 in your checking account. The overdraft protection will allow you to make this purchase on your debit card without getting denied at the cash register. However, you then will be charged an overdraft fee. On top of that, some banks treat the amount you overdrew as a loan, and therefore will charge you interest on that amount until you pay it back.

Sometimes, banks automatically enroll you in these programs. You could be charged a flat rate each month or a fee each time the bank covers you when you overdraw your checking account. A pro to having overdraft protection is that you can pay for a certain item, or take out the money you need when you need it. Cons are obviously that, even though you’ll be protected, you will be losing more money in the long run.

Overdraft protection programs exist so that you don’t constantly withdraw more than you have on your account. But it's not really worth it. Think about it, you didn’t have enough money to pay for the thing to begin with, and now you are being charged extra on what you already didn’t have. Overdrawing will cost you – a lot!

It’s probably better to just keep your debit in check. Making sure there is enough money on it each time you go to the ATM or make a purchase will help you to save money on overdraft fees.