Over the limit? Lenders devise a variety of services designed to make you think you’re better off when in reality they extract more money out of your pocket than they are worth. One of these is overdraft protection.

The overdraft protection feature is marketed to account holders as a no-cost solution that provides financial protection for consumers. But the fees associated with going over a credit limit in the case of a credit card or below a zero balance on a checking or savings account are astronomical – and can easily top 100% of the transaction amount in excess of the limit. And what can happen is the following: say you go over your limit of $100. Your charges were as follows: $98 ergonomic, hypoallergenic, custom-designed pillow; $9  ultimate bagel sandwich; $5 parking; and $4 triple espresso mochalatta.  You can be hit with repeated overage fees for each transaction that brings your balance above $100 – a $20 fee for each the bagel, parking, and espresso drink.

Those looking to improve their finances will actually be better off skipping the service and letting these transactions simply be denied. You will save a ton on fees and consequently avoid the types of actions that cause a casade reaction on your bank account, eating up one’s budget with unexpected items.

Do you have an interesting story on overdraft fees with your saving, checking, or credit card account? Tell us about your experiences.

Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs.  DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.