GRANTS FOR MOMS, DADS, AND STUDENTS

Posts Tagged ‘overdraft law’

Last night I was reading about a wonderful new law for Creditors and Banks. It’s one of those, “FINALLY” type deal things. It’s all about saving the consumer, that’s you and me, from those EVIL greedy overdraft fees – but there is a catch.

What’s the ATM Overdraft Catch?

Well, the catch is that you will not be able to withdraw or spend any more money than is actually in your bank account. That’s certainly a “catch” I can live with.

The banks and credit card companies are now in a panic of course. Why? Well…. HA! Let me share a little bit of statistics about how much money banks and CC companies are raking in due to their generosity of allowing us to be overdrawn.

Credit Cards and Banks Making Billions!

In 2009 banks generated an estimated $20 billion from overdraft fees on debit purchases and A.T.M transactions. Are you thinking, OMG, OMG, OMG??? Well, that is certainly a shock to me and I’m sure you’re rather stunned too.

What you also need to know is that you are “automatically” going to lose your overdraft protection, which is a GOOD thing. But the banks and credit card companies are TESTING to see if they can either SWAY you or SCAR you into opting INTO overdraft protection.

DON’T DO IT! Credit Cards and Banks Are Not the Answer

Listen up. Here’s what you and I need to do. We need to add our OWN OverDraft protection to our account. I usually like to have at least $200.00 to $300.00 in my account at all times. I actually get panicky when I see it dipping below this.  A few years back my husband and I were on the verge of becoming homeless, moving in with friends or family was an option, but hey, we all like to live our own lives and not be a burden to others.

It’s time to be responsible. Do NOT opt-in to DEBT! This is what you are doing when you allow banks to take your money. And it isn’t a little money, they can charge you day after day for times when you go over your funds by just a few dollars. In some cases, pennies. Opt-in overdraft protection means you are going to get overdraft fees up the wazoo. This new overdraft law or overdraft rule, whatever it is, is a good thing.

Add your buffer and do not allow yourself to spend it. Especially if you are one of those people who are constantly finding yourself overdrawn. It becomes like a safety zone for us and it’s almost like an addition. An addition to NOT worrying about it, why? Because the bank will pay it and well, we’ll just have to pay the OD fees.

Stop this madness. Do not allow the banks to convince you that you may be stuck somewhere without a penny and hey, they won’t help.

When it comes to running out of gas. My husband and I keep a little cash gas fund in our car for such emergencies. We don’t use these funds for anything BUT buying gas.

Take control of your finances. Start thinking ahead, planning for times when things are tough. Create your own buffer zone NOW, and stop contributing toward the bank and creditors 20 BILLION DOLLAR EVIL Funds TODAY!

I’d love to hear from you, please add your encouraging comments below.