Friday, November 20, 2009

"OVERDRAFT FEES - My 2 Cents Won't Cover Them" Lessons In Debt, Credit And Home Ownership


In one of our other blogs: http://WomanToWomanMagazine.ning.com I have been writing about the humble beginnings of the credit card industry. Back when they were knocking on merchants doors soliciting their participation in this new marketing idea to expand merchant's clientele. The 3 progressive articles bring you to an era that is recognized and felt by many across the globe, the invention of the DEBT CARD ! Of course, by design this little product is really in place to take advantage of the banking industry’s real money maker – OVERDRAFT FEES !

Introduced to the consumer as a ‘convenience’, you no longer had to tug around that huge monster the ‘check register’, you could simply take out the little card that is conveniently tucked away and swipe just like a credit card, but you ‘assumed’ like your checks, if there was no money, the debit card didn’t work, you THOUGHT you were safe and probably saving money. However, in creative marketing, once bankers got you hooked on the convenience they switched the deal and once again provided you with another ‘convenience’ called 'override protection'.

This time, when you used the debit card, even if there was no money in your checking account, the card cleared, and you conveniently were able to take your merchandise home. However, in the mail the following month were OVERDRAFT FEES ! Yes, there is a price for convenience. There are no free rides, especially when you get close to any product that is promoted by banks, so why are you so surprised when you open the mail that carries your monthly statements ?

$24 BILLION dollars in 2008 was the cost to consumers for the ‘convenience’ of using the debit card ! The bankers knew when they introduced the debit card, that people would not take the responsibility for their decisions. They knew they had a ‘natural resource’ of funding and by reaping $24 Billion dollars in one year, I see they were right. Bankers struck the 'mother load' without lifting a shovel !

One suggestion as a preventive cure to overdraft fees is to put your debit card under a large paper clip INSIDE your check register. Take it out and use it, then write in the check register your purchase amount, and put the debit card back under the large paper clip and NOT someplace else in your purse or pocket !

The absolute best way to save money and prevent overdraft fees is to go on a CASH diet ! It's not crazy and in some far reaches of our nation there are people who still use CASH. That’s it – cold turkey – use ONLY CASH ! Don’t give into that ‘convenience’ of the auto deposit, auto debit, debit cards and the total cashless system. It is designed to take advantage of your human weakness. The cashless society that has evolved is totally detached from the realities of their money making decisions, that is until the bills come in. Consumers no longer see their assets physically deplete.

Be strong, take control of your money. Know when the total you have shrinks, and why. Know where your money goes and how much exactly is left. It is your responsibility as an adult to manage your money. When left to others, it will cost you, and no matter how careful you are, you are gambling on the odds that have proven to pay $24 Billion dollars to the banks, money that comes from the betters who lost !

Spectrum Resources will help you structure a plan that will enable you to live inside your income. Spectrum Resources counsels in debt, credit and home ownership providing education and options that empower people with skills that make a positive difference.
Call (863)967-0660 Email: SpectrumResources@tampabay.rr.com and visit all our blogs:
http://SpectrumResources.wordpress.com & http://WomanToWomanMagazine.ning.com
http://FinancialEducationAndOptions.blogspot.com & http://MoneySavingTips.PolkVoice.com

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