According to Consumer Reports, the burden of overdraft fees falls most heavily on low- and moderate-income customers who make under $65,000 per year with the greatest impact on Black and Hispanic consumers.
The new rule requires large banks and credit unions to cap overdraft fees at $5 or an amount that covers only their costs and losses.
It will take effect on October 1 and might help Americans with one of their top goals for 2025 which according to a brand new Bankrate survey, is to improve money management.
"I think first of all, it's encouraging to see in our survey that so many Americans are prioritizing paying down debt in the New Year," said Mark Hamrick, Senior Economic Analyst of Bankrate.
Reducing your credit card debt will get you a huge return on your money as much as 30 percent, which is the interest rate on some cards.
Social media financial influencers offered these tips:
- Save for an emergency
- For 15 days write down everything you spend money on - that way you can see how much you are spending and where
- Use unexpected money to pay down debt
- Set up an automatic transfer to savings account every time you get paid
And Bankrate says it's a good idea to not only set up a budget but monitor your accounts by setting alerts on your bank and credit card apps. That way not only do you know what you and your family members are spending, you're also instantly alerted to suspicious or fraudulent charges.