3 tips to avoid overdraft charges

and Mint.com let you easily input expenses and balances from bank accounts and track them by category. WAP-enabled phones can use the Moneybasics Spendometer, which tracks spending and lets you set spending limits and easily create reports of your spending.

2. Arrange for overdraft protection from your bank.

This is an agreed borrowing limit you arrange with your bank, and it can help you manage cash flow better. It gets you out of a jam when, for example, you have an urgent bill but your pay cheque doesn’t go in the bank for a few more days. You have to arrange for this with your bank, and some banks allow you to do this online or over the phone.

3. Arrange text alerts from your bank.

Some banks, including Lloyds TSB, will send you a text message when you’re nearing your account limit so you can avoid unplanned overdrafts. Plus, with Lloyds TSB, if your account goes overdrawn, you are given until 3:30 p.m. UK time to pay in the money or arrange a planned overdraft so you can avoid overdraft fees. You can also arrange texts alerts for when your account nears a low balance limit that you set.