The new era of credit card regulations are upon us and banks are scrambling to try and protect the $20 Billion dollars in overdraft fees they collect from Americans every year.  This cash cow is now in jeopardy thanks to the CARD act reforms.  According to the new law, banks must now get permission from consumers for them to OPT IN to overdraft protection. 

This has spurred banks to send a wide variety of communications to their customers in an effort to get them to opt in to overdraft protection.  Some accounts have been as simple as a reminder to call or come in to activate the protection.  Other accounts have been blatant all-out attempts to scare people into opting in, by saying things like "Your debit card will not work if you do not opt in, even in an emergency". 

So if you are serious about becoming debt-free, a good first step would be to reject any offer of overdraft protection your bank offers you.  It does not take a huge amount of discipline to learn to live without that safety net.  Just learn to make purchases you know you have the money for.  At first it may seem a little difficult, but after a while of living on a cash basis, you will find it to be a liberating experience.  A life-changing experience.