Overdraft protection and late fees
Posted by: info | February 17, 2007
Millions of American have at least one overdraft fee from their bank each pay period. I know mistakes happen and are sometimes unavoidable. The problem is we are becoming accustom to these fees and they are part of our everyday finances. We must change!
These fees can range anywhere from $25-$35 per transaction. This is not including any fees the merchant is charging. I know people who don’t even worry about having these fees and they are negative each week before their pay period. I know and try to help friends, family and consumers deal with this everyday. A close friend of mine uses the $300 his bank allows him to overdraft each week. He tried to explain to me it was his money. I sat down with him and showed him exactly how much this cost him each month. The monthly bill from the bank was around $850. Once he sat down and seen the numbers he freaked. He wanted me to help him dig out of this debt hole. We made a plan for him to live on a scarce budget for 2 weeks. I mapped everything out for him and call him daily to make sure the budget is on track. Sometimes this is what it takes for us to get out of these debt holes. Everyone hates buckling down and getting out of their comfort zone. If you measure your debts, stick to a budget and buckle down you can over come these costly fees.
Late fees are a whole new story. The fees are about the same as an overdraft fee about $25-$35. Most people only have one of these per company per month. Therefore they don’t cost quite as much in the short term. However, in the long run they may cost you more. Late fees are reported to the credit centers on a monthly basis and lower your credit score for each hit. Lenders look at these late fees and missed payments before approving you for a loan. Late fees are very bad for a credit score. Most of the time you can’t even get approved for instant credit if you have late fees. These fees cost you money, hurt your credit score and keep you in a hole. The best way out of them is having a plan. Again you should measure your spending, set a plan and buckle down on your spending until you get caught up.
A lot of financial institutions make a lot of their money and profits from these fees. In fact this is how they are able to offer you free accounts, low interest payments and other big incentives to get you to join. By avoiding these fees you will have a lot more money and save your credit report. Buckle down and set a plan and over come these debts. It is best for everyone except the finance companies. If we can avoid these fees we will save money and get out of debt.
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4 Responses to “Overdraft protection and late fees”
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June 6th, 2007 at
Banks try and squeeze every penny out of you. They give you free checking, but make it up with ATM Fees, overdrafts, transfers and phone charges.
July 1st, 2007 at
My bank fees have went from $25-$35 in less than a year. Every week they find some way to take my money. Banks suck!
July 8th, 2007 at
My bank gets at least $25 extra from me each week.
July 18th, 2007 at
Banks rip you off!