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Watch those overdrafts

There have been some VERY good comments in this post on using debit/check cashing cards. I urge everyone who is going on the journey with me to Financial Bliss to be aware of the traps and pitfalls that the banks and lenders let us get into.
Laura shared in the comments that the bank may allow you to go severely overdrawn before even notifying you of the error.
Be vigilant about your checking account- this is YOUR money. Record purchases right away and balance your statement within the week when it comes in the mail.
If you and your spouse are both using the check cashing card then you both need to make sure you are recording the purchases in the check register. Be hyper-vigilant when you are making many purchases- such as Laura and her husband when they were working on remodeling their home.
Also- if you do make a mistake and get overdrawn- don't hesitate to go to the bank and discuss it with the manager. Back in December I found out that my bank takes all debits (purchases) and deducts them from my account before they add in the credits/deposits. This caused me a great problem. I made a deposit at the bank and then went to the grocery/department store (right behind the bank) and bought some Christmas presents etc. Even though I went to the store after the bank- that purchase went through before my deposit and coupled with the two purchases I had made the day before online- it sent me over but I didn't know until 5 days later- when I had made other purchases not knowing that I had become overdrawn and they had been socking me with $32 overdraft protection fees for each transaction- which caused me to be even more overdrawn! To say I was distraught is an understatement. But I didn't wallow in my grief and despair. I marched into the bank with determination and asked to speak to the manager. My lip quavered but I explained to him what had happened to me and honestly said that I couldn't afford these fees- I explained that I had made a deposit the very morning of the purchases- showing him the receipt. When he explained the whole credits before debits policy I was shocked and even more dismayed. I asked him to please reverse the fees as I had not had this problem before and was a customer in good standing. He said that since I hadn't known/understood this policy he would do so. I was very thankful (and praising the Lord) that by simply going to the manager and stating my case I was able to "fix" the situation.
I learned my lesson and am even more hypervigilant about our accounts. For myself, I no longer make purchases the same morning I make a deposit unless there were sufficent funds before the deposit to cover my purchases.
Personally, I feel this is a dirty trick by the banks to make more money in fees. I use to work at a bank back in the 90's and this was not the policy then.
So- be vigilant, balance your check book EVERY month and keep careful records. (I kept notes etc. on my conversation with the bank manager just in case and you should too.)

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10:53 AM, 2008-Feb-5 .. Posted by gabbie427

The main thing is write down all your purchases in your check book, just as if it was a check written. Hubby and I have only one card, and he carries it, and brings me the recipts as he buys something on it (not very often, but nice to have when he doesn't have cash on hand), and I carry the check book.

Also, we have online banking, so I check it every few days, to make sure everything is ok, and hubby hasn't put something on the card that I didn't write down. By monitoring our bank account like this, we can call (and have had to before) the bank and get things settled if a mistake is made on our account before it gets out of hand.

After all, your money can only work for you if you are working at it. It is your money, don't watch it go down the drain in overdraft charges or let someone rip you off while you are not paying attention.

Check your accounts regularly and monitor where your money is going.

This is another great post Amy! Thanks for sharing.

God's Blessings,
Amy Jo

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11:31 AM, 2008-Feb-5 .. Posted by a1health

We use our American Express for everything, not the bank. We have to pay off the AmEx by the end of the month or a raise in interest will occur. We also have a limit that is lower than what my husband makes in a month so that helps. With AmEx you get 2% back on all purchases and 3% back from Costco, so it really helps at tax time-we have to pay every year. I also make sure to have $50 in cash with me at all times in case a store doesn't take AmEx.
Continued success on your finances.
Blessings,
~Farrah

watch deposits at different branches!

12:11 PM, 2008-Feb-5 .. Posted by wstoller

Yes, we recently had an overdraft fiasco. I actually wrote a check off our business account 3 days after a deposit was made but since there was a holiday in there and when they posted the deposit was on Tuesday and of course they ALWAYS (I was told this later) withdraw the largest amount first so that all checks that come through that day will end up incurring an overdraft fee. I to called in and spoke with the manager and kindly explained my predicament. It was not an actual overdraft - only that the bank chose to play with the funds a few extra days before actually making them available too us - which I thought was pretty unfair and then played with the numbers so that they could overdraft us on 6 checks instead of one - which would not have occurred if they played a little more fairly. They removed all but one and explained their crediting policy (which is different than how the bank in the city where I live runs theirs - which is the same bank - but each branch has it's own rules on how they process things - so another watch out -b ecause different branches can operate a little differently!! Also, a friend told us that the particular branch that did this to us actually gains a great deal of $$ from overdraft fees - so they do try to capitalize on it if possible. but I did appreciate that they did kindly remove at least all but one and didn't sock me with quite so many charges. I have generally tried to operate carefully in this area - I believe this is the first time in 6 years this happened to us - other than another occasion which it was an actual bank error, not ours. Sigh... they are tricky too....