A few months ago, I wrote about how you can try to talk your way out of an overdraft fee. On Thursday, I was again reminded of how it seems like people still are having problems managing their money. Every morning I check the overdraft report. This report tells me who has gone overdrawn, and if necessary, I shut down their debit card. A typical day will show about 25-30 people on the report. In the past few weeks, we’ve been averaging 50-60! That’s double the amount! It amazes me that people pay $30-$36 for an overdraft charge, yet continue to use the account.

The number one cause of people going overdrawn is due to the lack of a check register. How can you know how much money you have available to spend if you don’t have a record of what you have spent? Online banking, telephone banking, and asking the tellers for a balance are not reliable methods of tracking money. They don’t know what checks are outstanding or what check card transactions haven’t posted yet.

The “posting” process confuses people, or they don’t fully understand it.  My bank doesn’t make checks available until the next day, so if I make a deposit one business day, the funds aren’t available until the next business day.  I make sure the deposit clears and is available before I write any checks off of it.

There are methods of overdraft protection.  You can link your savings account as a buffer, and in case you go overdrawn, it will transfer the funds into your checking account to cover.  You can apply for a line of credit that will cover items if you do go overdrawn.  Sometimes there are monthly fees for that.  I know there are people that keep a $100-$200 buffer in their checking account by pretending that money is not even the account.

How do you keep from getting overdraft fees? 

Posted under Bank Secrets

When I got the mail today, I had received my rebate check from my National City Everyday Rewards Visa! I am so excited! Of course, I had been checking my rebate amount each month when the statement came, so last month when the rebate balance was $99.25, I was a little bit bummed. (Once you hit $100, the check is mailed). I missed my check by $.25! I was patient, and received it with my statement this month.

I’m going to use this check to make a payment on that student loan. I’d love to go out and buy a new digital camera, but I’m going to be responsible and keep chiseling away our debt. It’s for the best.

Here’s my proof of payment:

I don’t know why, but I always enjoy seeing copies of people’s checks, especially when it involves them making money online, or easy money!

Do you think I should use the check for paying on the loan, or do something fun with it?

Posted under Credit Cards, Pay Off Debt

The financial institution I work for is set to announce its earnings tomorrow.  I went out after work with a few other office managers who seem to think that after tomorrow we’ll all be out of jobs because our bank is the next to fail.  While it’s a concern, I don’t think that is truly reality- yet.  I am one of the optimists and I say that we’re going to be fine.

If all the people would stop freaking out about IndyMac bank failing, then so many other banks won’t be in trouble, like others are predicting.  I can’t even begin to tell you how many questions I have had about FDIC insurance and how to style accounts so that they are covered in the past few days.  It’s been horrible.  I am tired of telling people to add a beneficiary to their account to get $100,000 extra FDIC coverage!  I understand it is my job, but I also feel that consumers should do a good job of educating themselves on their money.  I had a customer today tell me that the person who opened her account should have let her know about the $100,000 per depositor FDIC coverage.  We have signs put up all around the branch letting people know about this.  It’s not like we are hiding it.

I think it all boils down to making smart money decisions.  Sure, if you’ve got more than $100,000 in an account, make sure you add a joint owner or beneficiary! Just make sure that you do it as soon as possible for peace of mind.  If people start making a run on the banks, of course they are going to run out of money and will have no choice to go under.  Make sure you cover your assets.

I am worried that I will be out of a job soon, but at the same time, I know that is something I cannot worry about.  It’s totally out of control.  I’m going to sit back, take one day at a time, live frugally, save my money, and pay off my debt.  After all, isn’t that all we can do?

Do you think more banks are going to fail? 

Posted under Bank Secrets, Economy, Save Your Money