Writing a bad check can really be a sticky situation. It can happen to anyone, even those who make an effort to take care of their money. Poor budgets and impulsive thinking are the most common root of this financial problem. If you encounter this situation, acting quickly to resolve this issue is critical because this mistake can be costly.

While a single bounced check may not be a big deal, multiple bounces can wreak havoc on your budget. You have to pay a bank commission that can range from twenty to thirty dollars or more. You may also have to pay the same price to the person or store for the inconvenience you have caused.

If your bad checks pile up, your bank account will quickly go into the negative, and ultimately your bank may decide you’re a big risk and close your account entirely. It will not be possible to open a new account unless you pay your old account balance and your bounced check will be recorded in ChexSystems alerting other banks of your violations.

Your problems can also be made worse if the establishments resort to legal action to recover their money. You may get a call from companies that specialize in bounced check recovery, reminding you to resolve problems with your customers as soon as possible. Bad checks won’t just affect your bottom line; your reputation can also be destroyed. Banks will be reluctant to do business with you and will also decrease the job opportunities available to you.

Try to avoid writing bad checks as much as you can. Problems that haunt you after writing one can haunt you for a long time. If an accident occurs, try to solve the problem as quickly as you can. Your future and reputation are at stake, so always be vigilant to keep your financial situation healthy.