Are You Really Protected?


None of us likes to be embarrassed or humiliated. The memories of those burning emotions can make us relieve the embarrassment years later. But embarrassment doesn't kill us. Nor does it hurt us.

In order to avoid humiliation in the areas of finance, many people will sign up for overdraft protection with their bank or credit union. This will ensure that, if a person writes a check or makes a payment through electronic means and there isn't enough money in the account to cover it, then the bank will 'dip' into the overdraft to get the money to pay for the charge. Sounds great, right? Not so fast.

There is a monthly fee you will be charged. Plus a fee for when you use the overdraft AND interest on the amount in the overdraft.

Or you may decide to use the pay as you go method. I saw one bank that will charge you $5.00 for each day the overdraft is increased or created.

Whichever method you use, the charges are going to add up. And you will be contributing to the reported $35 billion in profits that the big banks earned in 2015. (source cbc.ca)

 You can do that, if you really want to, but I have a much better idea.

In my opinion, overdraft protection is just another way the bank can get your money legally. It is also a way for people to be careless and not have to pay the consequences. Instead of funneling your hard-earned dollars to them, put on your big girl/big boy pants and take control.

It is time for you to have a better grasp of your finances and I don't mean that you have to be an accountant or a money guru but just know where your money is going. Keep track of your spending so that you know how much is in your account. You know how much you can spend.

I'm old school. I created my own check registrar so I can keep track of how much is in my account. But, if you don't want to do that, then just get a dollar store notebook. At the beginning of each pay period, put in how much you got paid then list the expense you know are coming out - like rent/mortgage, insurance and any other pre-approved payments. The money left over is what you have to spend on other expenses.

DON'T GO OVER THAT AMOUNT AND YOU WON'T NEED OVERDRAFT PROTECTION.

Of course, there may be times when something unexpected occurs and you could run into an embarrassing situation at the grocery store or wherever. But if you keep an accurate accounting and keep in mind how much is in your account, this should happen rarely.

But if you are the type that NEVER wants to feel embarrassed for a few moments then you go ahead, don't keep track of your finances and get overdraft protection. Personally, I would rather have the money in my bank account.

If you feel that you are ready to gain control of your debt, then stop trying to figure it all out on your own and make sure you don’t go another year without gaining control —click here
 
I might be able to help you by supporting you through the 5-Step Financial Stability program that I have used to get control of my financial situation. click here

To your success, 

Karen Magill 

P.S. It is NOT right for everyone – but if you feel having me working with you almost “daily” & giving you a proven step by step system to follow will help you get your  finances and life back on track then for more details. - click here 


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