Review your account statements each month. Between statements, you can find out which payments have cleared and check your balance by calling your bank or by checking online or at a cash machine.

Sometimes mistakes happen. If you do overdraw your account, deposit money into account as soon as possible to cover overdraft amount plus any fees and daily charges from your bank. Depositing money into your account can help you avoid additional overdrafts and fees.

Banks may provide other ways of covering overdrafts that may be less expensive. Ask your bank about these options before making your choice. You may be able to:

Link your current account to a savings account you have with bank. If you overdraw your current account, bank can transfer funds from your savings account to your current account.

Set up an overdraft limit of credit with bank. You need to apply for a "line of credit" just as you would apply for a regular loan. If you overdraw your account, bank will lend you funds by using your line of credit to cover overdraft. You will pay interest on this loan, and there may be an annual fee.

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S A Baker is staff attorney at http://www.thesmartattorneys.com