• Installing Financial Red-Light Cameras from Fiscal Fizzle.
• Develop a Healthy Attitude About Money and Spot Unhealthy Habits from Generation X Finance.
• Investing Rules of Thumb from The Oblivious Investor.
• How To Prioritize Your Debt Repayment Plan from Moolanomy. (Disclosure: I wrote this one. I’m now a staff writer for Moolanomy!)
• Living within your means is good for the economy from Funny about Money.
• Reasons You Should Get Started Investing While Still a Graduate Student from MoneyEnergy.
• Don’t Forget These Last Minute Tax Breaks for 2009 from Good Financial Cents.
• Are Debit Cards Evil, Too? from Get Rich Slowly.
• Medical Expenses A Common Cause of Bankruptcy from Frugal Dad.
• A Report Card for Financial Rules of Thumb from Consumerism Commentary.
• 7 Steps to Improve Your Credit Score from Bargaineering.
• How Do We Exit the Bailout? from All Financial Matters.
• 7 Ways To Save Money On Dental Care & Bills from My Two Dollars.
• 3 Medical Basics — Some Things Aren’t Optional from Mrs. Micah.
• Get your finances under control in a single day from Gather Little by Little.
• Pay Off Your Credit Cards in Half the Time from Cash Money Life.
• Cash For Appliances Government Stimulus Rebate Program Will Give Money For Old Refrigerators, Washers And More from Bible Money Matters.

Image source: Daylife

Post from: EveryJoe

Saturday Staples: Personal Finance Reading

• $15 for a book.
• $6 for coffee and a pastry.
• $3 for parking.

Now, that $6 transaction put you $1 over your limit. You will be charged, on average, $39 for that transaction. And, of course, you will also be charged another $39 for the $3 parking transaction. That means that for going $4 over what you have in your account, you are now behind $82 (the $4 plus $78 in fees). You can see how quickly this adds up. Many banks won’t start denying your debit card purchases until you have racked up around $300 or $400 in overdraft charges.

Congress considers requiring permission for overdraft fees

Just as the recently passed Credit CARD Act will require credit card companies to get your permission to allow over the limit transactions (and the accompanying bank fees), Congress is now considering requiring banks to get your permission to approve transactions that go beyond what you have in the bank.

While this might reduce a source of income for banks, it might provide help for consumers. If consumers must “opt in” to see overdraft charges, it could result in more savings for those who must transform their spending habits in order to avoid having transactions denied. Of course, there will doubtless be some who want to be able to continue spending beyond their means. But at least they will have been warned about exactly what the costs are.

Keeping track of your spending

Of course, it is much better to keep track of your spending in the first place. Remember that your debit card takes money out of your checking account. This means that you should deduct purchases made using your debit card from your check register, or enter them into your personal finance software. I keep all receipts from debit transactions in my purse, and then enter them into my personal finance software at the end of each day. This way, I keep track of how much money I have.

Having a spending plan, and sticking to it, can also help, since you will have a plan for your money, and will be less likely to over-run. Regardless of whether or not Congress passes this measure, it is vital that you take responsibility for your finances and keep track of your spending. Otherwise you will never find financial freedom.

Image source: Daylife

Post from: EveryJoe

Congress Takes Aim at Overdraft Charges

I should have looked deeper.

I went to the bank Saturday morning to talk to someone about this. They looked at my account history and found that, thanks to a bank error, a deposit that I brought to the bank and handed to the teller well before 3 p.m. on Wednesday did not get “made” until Thursday. All of the bills that we paid on Thursday (mostly direct withdrawal), therefore, put us into the negative, since only $100 is available the day the deposit is made. By Friday, though, everything was “available” and we were well into the black.

On Saturday, the bank people assured me that everything was fine, and they didn’t understand why the card hadn’t worked, but that it should be in good shape for sure now. The bank also began the process of refunding all my fees.

But, unbeknownst to me and to the bank teller, a hold had been placed on my debit card Thursday, at the national level, when the account went “negative” and the fees started adding up. Through another bank error, the hold was not removed after the account went positive. I found this out last night after a rather embarrassing incident in which I tried to buy some computer software and had my debit card rejected again. The nice man at the bank looked into the adminstration stuff and found that the hold had not been removed — and he did this for me.

Today, though, everything appears to be (finally) working correctly.

What I have learned from this rather painful experience

My “bill paying” account needs to be better stocked with extra padding (or maybe overdraft protection…hmmm…) for just these types of problems. That way if my account isn’t properly credited when it should be, I don’t run into this hassle.

Another thing I learned: Try to remember to get down to the bank and make deposits at least two days before the money needs to be in there.

image credit: sxc.hu

Post from: EveryJoe

Keeping Tabs on the Bank: A Debit Card Horror Story

Why we love the debit card

We are constantly being told that credit cards are the root of all evil, and to avoid them. But we love the convenience of doing nothing more than swiping a piece of plastic. The debit card offers us the best of both worlds: it’s not credit — it takes the money from the checking account — and it is very convenient. But it could be costing you.

A debit card has some drawbacks when making purchases, such as liability (you are), disputes with merchants, and the practice of “blocking” (which is reserving $100 for your $35 gas purchase to make sure the money is there). And the latest practice? Letting you overdraw your account.

Another way for banks to charge fees

The debit card has now presented a new way for banks to charge more fees. Remember a couple of years ago when you didn’t have enough in your checking account to cover that purchase? Denied, right? Just like a credit card. Not anymore.

Now, many banks are allowing you to overdraw. And then hitting you with the fees. It’s becoming a rather big source of revenue for them because many people don’t record the small purchases that they make everyday. The lattes and the bagels don’t get entered into the personal finance software. They are such small amounts, we don’t think about them. And the “blocking” can also result in an overdraw (and further fees) — even though you may not know about it!

The solution? Keep track of ALL of your purchases made with debit card. And consider carefully using a good credit card or two. Tomorrow, we will look at how responsible credit card use can actually help you build wealth.

Post from: EveryJoe

Is Your Debit Card REALLY That Fabulous?