Beating Broke

Personal Finance from the Broke Perspective

How to Stop Overdraft Fees Before Holiday Swiping Starts

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A $6 pharmacy run should cost $6. If your debit card is opted into overdraft coverage, it can cost $43, and one 10-minute call to stop overdraft fees on your card fixes that before December gets here.

What one overdraft really costs

The CFPB found that some banks still charge overdraft fees as high as $37 each (CFPB Data Spotlight, April 2024). Walk that through on a $6 purchase: $37 divided by $6 is 6.17, so the fee is 617% of what you bought. Two of those a month is $74. Over a year, 2 x 12 x $37 is $888. For a lot of us, that’s more than what’s sitting in savings right now.

It stacks inside a single day, too. There’s no federal limit on how many overdraft fees you can be charged per day; the CFPB says some banks and credit unions set their own daily maximum, so you have to check yours.

Banks with more than $1 billion in assets reported $5.83 billion in overdraft and NSF (non-sufficient funds, the “bounced payment” fee) revenue in 2023, per the same CFPB report. That’s down 51% from $11.96 billion in 2019. Real progress, and still billions, much of it from people a few dollars short.

The protection that got repealed, and the one you still have

In December 2024, the CFPB finalized a rule to rein in overdraft fees at the largest banks. Congress voted it down, and the repeal was signed on May 9, 2025 (Public Law 119-10). No new federal cap is coming.

What you still have is older, and it works. Under Regulation E (the federal rule that covers debit cards and electronic transfers), a bank or credit union can’t charge you an overdraft fee on an ATM withdrawal or a one-time debit card purchase unless you opted in (12 CFR 1005.17(b)). You can take that consent back at any time, and the bank has to act on it “as soon as reasonably practicable” (12 CFR 1005.17(f)).

If you don’t remember opting in, you may have checked a box the day you opened the account. Your bank can tell you in one question.

How to stop overdraft fees in one call

  1. Find your number (5 minutes). Open your account’s fee schedule in the app or on the bank’s site. Write down the overdraft fee and the daily maximum. That’s the amount you’re protecting yourself from.
  2. Opt out of debit card and ATM overdraft coverage (5 minutes). Call the number on the back of your card, or look in the app’s settings. Say: “I’d like to opt out of overdraft coverage for ATM and everyday debit card transactions.” The rule says you can revoke consent the same way you gave it, so if you opted in online, look for the switch there first. After this, a purchase you can’t cover gets declined instead of costing you $37.
  3. Ask for the last fee back while you have them on the line. No law requires a refund. The fee is the bank’s policy, and so is waiving it. Try: “I was charged a $37 overdraft fee on [date]. I’ve opted out so it won’t happen again. Can you reverse that one?” If the answer is no, ask once more: “Is there someone who can review it?” Then let it go. Worst case, it cost you five minutes.
  4. Link a savings account as your backstop. A transfer from your own savings to cover a shortfall isn’t legally an overdraft service (12 CFR 1005.17(a)(2)), and the CFPB notes shortfalls can be covered by a transfer from a linked account. Fees for that transfer vary by bank, so ask what yours charges. Even $50 parked there can catch a short week. Skip the overdraft line of credit if they offer one; it’s a credit product (12 CFR 1005.17(a)(1)), which means you’re borrowing, with interest.
  5. Line up your autopays with payday (15 minutes). Opting out covers ATM and one-time debit purchases only. The CFPB confirms banks can still charge overdraft fees on checks and recurring electronic payments. Pull up your list of autopays (streaming, phone, car insurance) and check which ones land before payday. Move any you can to the day after your paycheck hits.

The catch

A decline at the register stings. If your card gets turned down with a line behind you, that moment is uncomfortable. It’s still $37 cheaper than the alternative, and a $20 bill tucked in your wallet for short weeks takes the edge off.

Opting out doesn’t cover everything. Recurring payments and checks can still overdraft, or bounce with an NSF fee that the CFPB says is often the same amount as an overdraft fee. A bounced autopay can also bring a late fee from whoever you were paying.

It doesn’t fix the gap. If you’re overdrafting every month, the real problem is the timing between your paycheck and your bills, and sometimes it’s plain not-enough. The switch stops the bleeding while you work on the budget.

If your bank keeps charging debit overdraft fees after you’ve opted out, or charged you when you never opted in, you can file a complaint with the CFPB.

What to do this week

Before your next payday, call the number on your card, opt out of debit and ATM overdraft coverage, and ask for your most recent fee back. Ten minutes on the phone, and the next short week costs you a declined card instead of $37.

Sources

  1. Consumer Financial Protection Bureau, “Data Spotlight: Overdraft/NSF revenue in 2023 down more than 50% versus pre-pandemic levels, saving consumers over $6 billion annually”, April 24, 2024 (accessed November 11, 2026)
  2. Electronic Code of Federal Regulations, 12 CFR 1005.17, “Requirements for overdraft services” (Regulation E) (accessed November 11, 2026)
  3. Congress.gov, Public Law 119-10, disapproving the CFPB rule “Overdraft Lending: Very Large Financial Institutions”, approved May 9, 2025 (accessed November 11, 2026)
  4. Consumer Financial Protection Bureau, “What can I do if my bank charged me a fee for overdrawing my account?”, last reviewed December 18, 2024 (accessed November 11, 2026)
  5. Consumer Financial Protection Bureau, “What is an overdraft?”, last reviewed January 31, 2024 (accessed November 11, 2026)
  6. Consumer Financial Protection Bureau, “How many overdrafts can I get in a single day?”, last reviewed January 31, 2024 (accessed November 11, 2026)

How to Ask for a Lower Credit Card APR: What 5 Points Off Saves on $2,400

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A lower credit card APR will not erase a $2,400 balance, but at the average card rate the bank takes about $45 a month in interest before a dollar goes toward what you owe. Some of that is yours to ask back, and a few of the asks have federal rules behind them.

What $2,400 costs you at the average rate

The Federal Reserve’s G.19 consumer credit release of Nov. 6, 2026 puts the average card rate at 22.36% for commercial-bank accounts that were charged interest in the third quarter of 2026. APR (what borrowing costs you per year) is the rate on your statement, and yours may sit above or below that average.

The CFPB says many issuers figure interest every day on your average daily balance, so the meter runs all month, not only on statement day. Here is the math on $2,400 (say $2,000 you already carried plus $400 of holiday spending):

  • At 22.36%: $2,400 × 0.2236 = $536.64 a year, or $44.72 in the first month.
  • At 17.36% (five points lower): $2,400 × 0.1736 = $416.64 a year, or $34.72 in the first month.
  • The gap: $10 a month, $120 a year, on this balance.

The bigger number shows up over the whole payoff. Pay $100 a month with no new charges (our math, fixed rates). At 22.36% you are done in 33 months and pay about $811 in interest. At 17.36% you are done in 30 months and pay about $569. That is about $241 and three months back. At $75 a month, the same five points are worth about $439 (50 months and $1,285 in interest, versus 44 months and $846). A five-point cut is an example, not a promise.

APR infographic

Read your statement first (5 minutes)

Pull your latest statement and find two things. The first is the APR on each balance; the CFPB says your statement must show each category with a different APR. The second is the minimum-payment warning box. Under Regulation Z, section 1026.7, each statement must estimate how long minimum-only payments take to clear the balance, and when that estimate runs past three years it also shows the monthly payment that would clear it in three years. Write both numbers down. They are your starting line for the call.

Three ways to get a lower credit card APR

  1. Ask whether your rate was ever raised. If the issuer raised your rate after giving 45 days of notice, the CFPB explains it generally has to review that rate at least every six months. Regulation Z, section 1026.59 says it must reduce the rate, as appropriate, within 45 days of finishing a review. The CFPB adds that if your rate is higher than a new customer would get, the issuer must reduce it, though not necessarily to your original rate. After a payment 60 days late, six straight on-time minimum payments should bring the old rate back. If your rate was never raised, this one does not apply to you; skip to number 2. Do this today: ask, “Has my rate been increased since I opened the account, and when was the last review?”
  2. Ask about a hardship or repayment program if a payment is at risk. The CFPB’s 2019 blog on calling your card company first says issuers can, and often do, offer alternative repayment options, and that these programs may let you pay a lower monthly payment at a reduced interest rate. It also says to get written confirmation of anything you agree to. Ask whether the card stays open and how the program is reported to the credit bureaus, because that page does not spell out the terms. If you are current and comfortable, skip this one.
  3. Make the plain ask. Say: “I have paid on time for [number] months, my balance is $2,400, and my rate is [your APR]. Can you lower it?” No federal rule says the answer has to be yes, and we found no federal figure on how often it works, so treat it as ten free minutes. Write down the rep’s name, the date, and whatever they offer.

Then keep your payment where it was. If the rate drops and your minimum falls with it, keep sending the $100. That is where the $241 and the three months come from.

Here’s the catch

None of these is guaranteed, and a lower rate does not shrink the balance. The savings above only show up if you hold the payment at $100; drop to $75 and you give the savings back as extra months. The hardship blog is archived content from 2019, and programs differ by issuer, so ask for the terms before you agree to anything. And if more holiday charges land on the card, run the numbers again. The ask is still worth making on a bigger balance.

What to do this week

Give it ten minutes in the next seven days. Pull the statement, write down your APR and the three-year payment, call the number on the back of the card, and ask the three questions in order. Get any new rate in writing. If it drops, keep paying $100: on $2,400, five points is worth about $241 and three months.

Sources

  1. Board of Governors of the Federal Reserve System, “Consumer Credit – G.19, September 2026”, released Nov. 6, 2026 (accessed Nov. 10, 2026)
  2. CFPB, “When can my credit card company increase my interest rate? What can I do to get the rate back down?”, last reviewed Sept. 22, 2022 (accessed Nov. 10, 2026)
  3. CFPB, “How does my credit card company calculate the amount of interest I owe?”, last reviewed Jan. 22, 2024 (accessed Nov. 10, 2026)
  4. CFPB, Regulation Z, 12 CFR 1026.59, “Reevaluation of rate increases” (accessed Nov. 10, 2026)
  5. CFPB, Regulation Z, 12 CFR 1026.7, “Periodic statement” (accessed Nov. 10, 2026)
  6. CFPB, “Need help with your credit card debt? Start with your credit card company!”, Apr. 3, 2019, archived (accessed Nov. 10, 2026)

 

How to Apply for LIHEAP This Winter (Before Your State’s Heating Money Runs Out)

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If the heating bill is already behind, you are not the only one, and you are not out of options. Knowing how to apply for LIHEAP this month matters, because the 2026-27 season is opening now and the households that apply early are the ones most likely to get paid before the money runs out.

What LIHEAP actually pays for

LIHEAP (the Low Income Home Energy Assistance Program) is funded by the federal government, but you apply through your state or a local agency, not through Washington. According to the HHS Administration for Children and Families, the program can help pay home heating bills, prevent a shutoff, get service reconnected, and repair or replace heating equipment.

That last part surprises people. If the furnace died and that is why the space heater is running up the electric bill, say so when you apply.

Do you qualify? Run the number before you rule yourself out

Each state sets its own income limit. Per HHS’s LIHEAP eligibility definitions, the federal ceiling is the higher of 150% of the HHS poverty guidelines or 60% of your state’s median income, and a state can set its limit anywhere from 110% of the poverty guidelines up to that ceiling.

In real dollars, using the 2026 HHS poverty guidelines for the 48 contiguous states, 150% works out like this:

  • You and one kid: the poverty guideline is $21,640. Times 1.5, that is $32,460 a year, or about $2,705 a month before taxes.
  • You and two kids: $27,320 times 1.5 is $40,980 a year, or about $3,415 a month.

Your state’s real cutoff could be higher (if it uses the median-income option) or lower. These numbers only tell you whether the call is worth making. If you are anywhere close, make it.

Why this week beats January

There is not enough LIHEAP money for everyone who qualifies. In an October 15, 2026 release, Rep. Chris Pappas’s office reported that five of every six qualifying families get no help at all. When a state’s winter money is gone, the help stops; Oklahoma Human Services says its winter heating program closes once those funds are used up.

A long application window does not mean the money lasts that long. Pennsylvania’s Department of Human Services, for example, is taking 2026-27 applications through April 23, 2027. Apply in November anyway.

How to apply for LIHEAP in four steps

  1. Find your office (10 minutes). Go to EnergyHelp.us or call the National Energy Assistance Referral line at 1-866-674-6327, weekdays 9 a.m. to 7 p.m. Eastern, per HHS. Do this today: write down the office name and how it takes applications (online, phone, or in person).
  2. Put your papers in one folder tonight. Ask the office exactly what it needs. It is usually some version of a photo ID, Social Security numbers for everyone in the household, proof of the last 30 days of income (pay stubs or benefit letters), your most recent heating bill, and any shutoff notice. Do this today: take a phone photo of each one.
  3. Apply, and say “shutoff” out loud if it applies. If you have a disconnection notice, or your service is already off, tell the office first thing and ask whether it has a crisis or emergency track. Preventing shutoffs and reconnecting service are part of what LIHEAP pays for.
  4. Call your utility the same day. Try: “I’ve applied for LIHEAP. Can you note that on my account, and do you have a payment arrangement or hardship program?” Write down the rep’s name and the date.

Know your state’s winter shutoff rules

According to the LIHEAP Clearinghouse, 40 states and the District of Columbia have cold-weather protections that limit disconnections. Two things to know before you lean on them. First, they generally cover regulated utilities, not every energy provider, so check whether yours counts. Second, the bill keeps running: the protection delays a shutoff, but it does not lower what you owe.

So treat a winter moratorium as breathing room to get the LIHEAP application through, not as a reason to wait.

LIHEAP never charges a fee

Scammers know people are searching for heating help right now. HHS says LIHEAP does not give direct grants to individuals and does not charge a fee to receive a benefit. If a text or call offers you a “LIHEAP grant” or asks for a payment, hang up and report it to the HHS fraud hotline at 1-800-447-8477.

The catch

LIHEAP usually covers part of a winter, not all of it. You can do every step right and still hear no because your state ran out of money. That is a funding problem, not a judgment on you. If that happens, ask whether there is a waitlist, then dial 211 and ask about local energy funds, which often run separately from LIHEAP.

It also won’t touch the water bill or the rent. It is heat help. Once the heat is on and the bill is current, our budgeting pieces are where to go next.

What to do this week

Before Friday, call 1-866-674-6327 or visit EnergyHelp.us, find your local office, and get the application in. Ten minutes of calling now beats a January waitlist.

Sources