Finding it hard to keep track of your debit card usage? You're not alone. Many cardholders simply find it impossible to track and control funds in their checking accounts. These days it's a challenge to keep an old-style checkbook register up to date with so many different ways to use a debit card. While debit cards are convenient, it's important to remember that the money comes directly out of your account. You need to keep track to avoid overspending or overdrawing. If you forget about one too many transactions, it can mean costly overdraft fees.

The variety of services that debit cards provide (ATM withdrawals, merchandise purchases, direct deposit, on-line banking, and connected accounts) coupled with multiple users within the family, makes it no surprise that overdraft usage?and associated fees-are becoming more commonplace. Most banks will offer overdraft protection if you pass a credit check.

An overdraft account includes a cushion of credit, which allows the bank to pay a check or debit charge if you don't have enough money in your account. Although handy, an overdraft account can also be costly. Banks typically charge an up-front fee each time they make an overdraft payment, then they charge interest on that amount until you deposit money to pay off the debt.

Try these tips to keep you updated on your daily transactions and avoid overdraft fees, or an embarrassing moment at a cash register:

• As you run errands, keep an envelope in your pocket or purse for any transaction receipts you collect during the day. That night, record your transactions in a ledger.
• If you find yourself using your debit card often, you may want a bigger ledger than the standard checkbook size. If there's not enough room to record all your transactions, you'll quickly abandon your system.
• There are many helpful money management systems that will make recording your transactions even more convenient-especially if you already spend a lot of time on the computer. There are a variety of software programs, such as Quicken Deluxe, that you can use to organize your transactions and keep up-to-date on your account.
• If you lose track of your balance you can call your bank's toll-free line to get updates on your available funds and recent transactions. Or, many banks now offer online account summaries that you can check at work or at home.
• Invest in a handheld personal digital assistant (PDA) and download software that can help you record transactions as you go! Along with increased spending with debit cards, the need for overdraft protection is on the rise. Banks often check your credit before granting you overdraft protection, so it's important to know where your credit stands. Now that you can keep track of all your debit transactions, keep track of all three of your credit files with a 3 Bureau Online Credit Report!

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