Nobody plans on going overdrawn, but sometimes staying on top of your finances can be tough. Unfortunately, going overdrawn is expensive. A transaction as small as a dollar in size can trigger a $35 or higher charge. So, what can you do to avoid excessive overdraft charges? Read this article for five top tips that will help keep your overdraft charges to a minimum.

1. Pay close attention to your bank account

Are we stating the obvious? We sure are, but so many people get stung by overdraft fees simply because they weren’t paying attention. OK, you might not be able to avoid the first overdraft charge, but quickly acting when going overdrawn can help you avoid future charges and it is these repeated charges that are really painful. Nobody wants to log into an internet banking website every single day, but there are plenty of other options:

• Download your banking app. We all use our phones right through the day, checking news, social media, and sports scores. Put your banking app on your phone and check it alongside everything else. That way you can see straight away when your balance is running low, or if an unexpected charge puts you in the red.

• Set a balance alert. You should really keep an eye on your bank account, but it is easy to forget on those extra busy days. Thankfully, many banks offer automated alerts. Major checking account providers such as Wells Fargo and U.S. Bank, for example, allows you to choose automatic SMS, e-mail or push alerts if your balance falls below a certain amount.

• Act quickly. Let’s say you just noticed your checking account has unexpectedly gone into the red. It may be too late to avoid the first overdraft fee – though note that some banks won’t charge you if you deposit funds that put you back into the black on the same day. What you really want to avoid are fees for future transactions, a pesky $35 every time you use your debit card for a $3 coffee. So, act quickly: when you see you are overdrawn, put money into your account, and do it fast.

2. Quickly borrow from a reliable lender

Sometimes there’s nothing you can do to prevent an overdraft, and you simply don’t have any available cash to top up your account to cancel out the overdraft. Borrowing can be substantially cheaper than repeatedly paying overdraft charges. However, you need to find a lender that won’t sting you with high fees and charges, and who can get money to you quickly – on the same day, for example.

• Check with your bank. If you have good credit you may be able to borrow from your checking account provider at reasonable APRs. Wells Fargo, for example, offers personal loans at 7.49% APR, including same day funding. However, you need to borrow at least $3,000 and have a credit score of 660 and up. Nonetheless, if you are frequently overdrawing your account, a personal loan could give you the breathing space you need.

• Try an overdraft app. Believe it or not, you can borrow money free of charge. Cash advance apps can advance as much as $500 on your pay without fees or interest charges. Some apps encourage tipping, while others have a small monthly service fee. Our advice: read up on cash advance apps and consider signing up with a free app. This way you have access to a bit of cash just in case you need it.

• Be careful with borrowing. Yes, borrowing can save you money on overdraft fees but watch the APR you are offered and take note of additional charges such as arrangement fees. Make sure you can repay the money quickly, particularly where you take out a personal loan: don’t commit to paying interest over a multi-year repayment period. Finally, beware the debt trap: constantly borrowing to repay another lender. Borrowing is for real emergencies only.

3. Manage your overdraft

You have a lot of choices when it comes to overdraft facilities. Some banks will allow you to decline all overdrafts, so you never go into the red and you are never charged by your bank. Other banks allow you to link your accounts to enable a type of overdraft protection. In other words, you can link your checking account to your savings account or to your credit card account. Give it some thought:

• Get the facts. Every bank has a different policy around overdrafts, overdraft charges, and overdraft protection. You could opt to simply have your bank refuse all transactions that take you into the red, but this will mean that your debit card is declined, or that you pay a penalty for an unpaid bill. Nonetheless, it may be in your interest to decline your overdraft facility, especially if you find that you’re repeatedly stung with overdraft charges.

• Link your savings account. Overdraft protection works like this: when your checking account goes into the red, your bank transfers funds from your savings account to cover the difference. Overdraft protection is not necessarily free but can often be less expensive than standard overdraft practice. For example, TD Bank charges you $10 for every instance that you make use of overdraft protection, whereas the bank’s overdraft fees are $35.

• Add up the numbers. It’s sad but true: many of us have been stung by overdraft fees over the years. Some people have paid thousands in fees. If that’s you, consider completely disabling your overdraft facility. Few things will motivate you to get your finances straight like getting your debit card declined at a restaurant. Find overdrafts unavoidable? Well, perhaps you can easily reduce fees simply by linking your savings account.

4. Good old financial planning

We’re back to stating the obvious, but we must emphasize that planning your finances is key to avoid getting charged high overdraft fees. Just like checking the balance on our accounts, many of us skip this essential personal financial planning.

• Get a grip. It’s easy to lose track of your finances and working it all out can just feel like too much effort. Why not try an app? Mint, for example, can be helpful when it comes to planning your spending. It shows you where your money goes and helps you find ways to reduce spending. Cash flow is key too, in other words, plan so that you have funds available whenever a payment needs to be made.

• Build a nest egg. Overdraft fees and the unexpected goes hand-in-hand. That’s why it is so important to have a little bit of cash saved up. Even if you’re great at saving be careful not to tie up all your money in high-interest accounts and investments. Always make sure you have a couple of hundred dollars ready to go in case you go overdrawn. As we explained in the last section you can even automatically top up your checking account by linking it to your savings account.

• Manage your debt. People who often get stung by overdraft fees are often people who are already struggling with debt. Do you find that your servicing your existing debt is putting pressure on your finances? Are you paying hundreds of dollars in credit card interest? First, pay off your debt as fast as you can by relentlessly cutting spending. Next, consider debt consolidation, taking out a low-interest personal loan to pay off expensive debt such as a credit card.

5. Think twice before using your debit card

You can do everything under the moon to keep your account in the black but still find that you go overdrawn. Why would you go into the red even if you plan your finances to the tee? Your debit card can spring a surprise. Watch out for the following:

• Unexpected debit card charges. Your debit card is linked directly to your checking account. If your debit card is overcharged by a hotel or car rental company you can find yourself overdrawing your checking account unexpectedly. How can this happen? Well, providing your debit card to service providers such as a hotel gives the merchant open season to charge your card. It’s unlikely that a hotel will maliciously overcharge you, but glitches are common.

• Card fraud. Online fraud is not rare and if you use your debit card for online payments you can face a situation where your checking account gets debited by fraudulent charges. Your bank should refund fraudulent charges but getting a refund for the associated overdraft charges may prove difficult, especially if your balance hovers around zero for parts of the month.

• Use your credit card. Instead, consider using your credit card. You are still at risk of getting overcharged, but the interest you pay on excess charges will usually be far less than the overdraft charge you pay on an overdrawn checking account. Also, stronger consumer protection is in place for fraud on credit cards, you face a lower liability compared with your debit card. Importantly, only use your credit card if you have the self-discipline to pay it off every month.

Skipping overdraft charges require knowledge, foresight, and planning

Many people never get caught by overdraft charges, they simply spend a lot less than they earn. However, for most of us making ends meet is a tough task and it can lead to stiff charges from financial service providers.

Nonetheless, you can completely avoid overdraft charges by planning your finances carefully and by keeping a modest pot of savings to one side. That said, keep a watchful eye on your bank account and take care when using your debit card as sometimes overdraft charges can be completely unexpected.