Cash or credit - or debit card?

Join a Credit Union, ditch the banks you belong to.

Be a member of a business that focuses on the clients, not the profit motive.

Amazing that now - while  the government is spending our tax dollars to bail out the greedy banking institutions-  these same institutions are looking for more ways to gouge us.  Looks like we are just going to have to go back to paying cash for everything. We can leave just enough money in the bank to be able to write checks or do transfers to pay major bills, and keep the rest of our money physically at home or on our person.  Thanks MSNBC for alerting us.

Banks will always find a way to rip off the consumers. Until we balance our budgets, they will find a way to profit. One thing I do is a 'oops stash of cash' (extra money) that I ignore. For example, if my deposit amount is $250, I write that down but only ADD $240. When I write a check or use my debit card, for say $18.57, I write that down but deduct $20 from the balance. I once 'saved' $4,000 over a period of 5 years and used it to pay for new windows in my house. But the trick is, to ignore the extra money. It gets easier the longer you do it. It's simple and not really complicated. When I do my monthly statements, the 'extra' money increases each month. That way, if an error occurs, I cover myself, without getting stuck with overdraft fees or getting into the bounce protection some banks offer, which of course, comes with interest charges until overage is paid off.

Try this on for size. Charging your cell or home phone. Yep. I mean it. I received from one of my credit cards a letter with new terms basically stating that if I continue to use it, I'm agreeing with the new terms, and they are in a nutshell: increased interest rates if revolving the account, as well as full permission to use pre recorded messages sent to any phone number I've had in the past, present, or future. Cell phone included, If I go over my minutes per month, then they can charge me aggregate fees for this. Also, they can give my info to anyone they think has a need for it, if it makes em money (the way I see it). In other words, they can call me within the law and contract, whichever agreement applies first, and make me pay for doing it. Essentially, I now pay their direct expense if these conditions apply.

Now, who would give up permission to let some stranger charge me whenever they want, let alone call me? If this catches on, and more companies do this, we can all enjoy the convenience, and the pain. And I would be the money for the expense account that they don't need anymore, since they can take it off of my phone bill, then make me pay the phone company. If I can't, say, then the phone companies bill collectors cut my phone off, then send harassment notices as I see it. There is an opt out clause, but you need to call it for each phone number you have, separate calls for each number.

or... how about the credit card companys not charging 30% on the cards. I'm more inclined, dumb though it may be, to carry a balance at 12 or even 15%, but at 30% that gets paid off in full every month. So the credit card companies, though they get a piece of every transaction, now receive 30% of nothing, instead of 12-15% of something. The Banks are doing an excellent job of weaning me off using the cards .

And the banks have done such a good job of f-ing everyone over, I'm getting used to not using the cards as much. Now Banks, is that really what you want? for us to get used to putting the cards away?

Boyscotting the credit cards would be a great thing for all of us to do. I know that probably (millions?) of people have some debt, whether a little or a lot. It would be awesome if the entire country were able to pay off the debts within the next 5 years and NEVER EVER use them again. Oh how that would hurt their pocketbook for a change instead of the other way around.

If I could only be Samantha on Bewitched for one whole day.

One thing the reporter didn't mention. Most banks do not automatically offer any fraud protection on debit cards. If the card gets compromised, you are at risk up to the full amount of money in that account, and you will not be reimbursed. This is a very important point.

As a result of mostly luck I am in a position to be able to use a credit card for gas for my vehicle - then pay the entire balance each month..  I have been told by some that if I continue this practice my credit car issuer will charge me a yearly "membership fee" to continue using it..  Okay - if / when that happens I will use cash..  I have direct deposit for my income and use my debit card only at my bank's ATM - then make just abouit all purchases with cash..  No fees - no fuss - no worry..  I'm not saying that this will work for everyone but it does work well for me..  If you think the Wall Street "meltdown" caused problems for banks - imagine what would happen if everyone completely stopped using credit cards even for a month....  The card issuers show flashy ads demonstrating the "conveniance' of using thier cards..  What convenience???  Having to show ID with most purchases??  Having to sign a receipt for each purchase while juggling a wallet or handbag???  Having to wait while an underpaid overworked clerk checks signatures on the card and receipt???  Where is this convenience????  It is a lot faster and easier to use cash - count the change - and head for the door..  No worries about overspending - - no concerns about going over the credit limit - no giving out information.. 

As additional information to #2......  these card companies sell your personal information to anyone who pays the asking price.. If you read the small print in the "opt out' sections it will tell you that regardless of your request they will sell and or otherwise distribute your information as much as they are allowed to by law..  Residents in Vermont are fortunate - companies are not permitted to distribute any information under any circumstances beyond that company..   Companies also save the return address from your payment envelope and sell that,..  I found that my putting my street address and zip code that if necessary the envelope has been returned to me - and the amount of junk mail I get has dropped dramatically..  Of course I also got a "reminder" from one company requesting that I use my full return address to which I replied that when I was positive that my name and  address would not be sold or otherwise distributed I would consider it...  Large nationwide businesses make a considerable amount of money peddling personal names and addresses of customers..  Think about the person lugging that mail sack around distributing all the junk mail that none of us want - but get anyway.. 

Funny you should mention postal carriers lugging mail around. Check this out.

A local mail carrier who failed to deliver the mail pleaded guilty in federal court.

(Name deleted), 43, Ada, pleaded guilty to a misdemeanor charge of obstruction of mail, according to United States Attorney for the Eastern District of Oklahoma Sheldon J. Sperling.

“Charges arose from an investigation by the United States Postal Service and Office of the Inspector General,” Sperling said. “(Name deleted) was indicted in September, 2008.

“The indictment alleged that (name deleted), an employee of the USPS at the time, knowingly and willfully obstructed the passage of mail to be delivered from the United States Post Office in Stonewall, Oklahoma.”

Sperling said Magistrate Judge Kimberly West accepted his plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. He was released pending sentencing.

“The statutory range of punishment is up to 6 months imprisonment and/or up to $5,000.00 in fines,” Sperling said. “A preliminary calculation of the Sentencing Guidelines projects the defendant will be eligible for probation.”

Deputies from the Pontotoc County sheriff’s office assisted with retrieving the mail from his residence.

“It took two trustees, three deputies and two postal inspectors all day just about to move this mail,” Undersheriff Joe Glover said. “It took up, I don’t know how many pickup loads. It filled a whole storage warehouse.”

I guess he was too lazy or was snooping through everybody's mail.

One of our banks was bought out yet again by Huntington Bank.  If you use your debit card as a debit, it costs 25 cents per transaction.   (besides it also lets every tom dick and harry access to your pin numbers).  If you run it though as a credit purchase, there is no fee.  (and your pin is not accessed).   If you do go over, it is $40.00 per transaction for a fee, BUT they don't let you know for almost 10 days.  Recently this happened to us while we were out of town on a family emergency.    To add insult to injury, a fee of $7.00 per day is charged after 7 days condinuous overdraft, they even charge this for days when the bank is not open.  The mail here is lightening fast as I have mail as part of my business, so it is all on Huntington Bank for their slowness (because we should know that we are overdrawn).  9 days in informing of the overdraw by mail (for an item that was less than 20 dollars originally we were charged the 40 bucks, plus the 7 dollars a day which included Sundays and Labor Day when the bank was not open for business. Needless to say, they are not one we use anymore.

I can tell you from first hand experience, debti cards are not what they are tauted to be.  The banks post debits before they do credits.  So if you has a balance of $50 and made a deposit of $500 today and went out and spent $350.  They would deduct the $350 before they would deposit the $500, thereby gigging you for overdraft fees.   Not to mention they deduct the larger amounts first.  It doesn't matter if the smaller amounts were posted first, if they deduct the larger amount it depletes your bank account faster and they have a greater chance to charge you multiple overdraft fees if you made an error on your account.  They mentioned that you used to have days before the debit was posted to your account and now you don't.  If you have a balance of $50 and debit $52 today expecting that you will have a direct deposit tomorrow, you will get hit with an overdraft, even if the debit was not paid today.  They charge you based upon when the transaction was made, not when they were presented for payment. 

They get you every way they can.  My bank charged me $18.50 for my first overdraft six months ago - it is now up to $37.50.  When I called the bank, I was told I should either keep extra money in my account, open up a savings account that they could draw from or apply for overdraft protection, which requires an excellent credit rating.  Either way, I am screwed.  I can hardly keep food on the table and gas in my car to go to work, much less put more money in thebank so the banks don't screw me more.  I have come to the conclusion that on pay day I am going to take out what money I don't need for bills and pay everything in cash, not debit cards.