$38 Cup of Coffee?

Yep, you read that correctly...$38 for a cup of java! How does one pay $38 for a cup of coffee, you ask.

Remember the post a few weeks ago on "Are you a Joe Lunchbox"? Well, here's the 411 on the hidden and sinister fees that your bank and mine are sneaking into our budgets!

Imagine going into your favorite place to buy a cup of coffee and, as a responsible adult, you know you have cash in your checking account to cover your purchase. You use your debit card to help you keep track of your spending since it's harder to save receipts when you spend cash. So far, you're okay.

What you don't know is how your bank may process your transactions. They may decide to process your mortgage/rent payment first, car insurance next and lesser purchases after that. Because your timing and theirs may not be the same for your deposits vs. payments, you could end up paying $4 for a coffee with a $34 overdraft fee making your coffee purchase total $38! Not to mention, the overdraft fees because you didn't have the money available to process your mortgage/rent payment or your car insurance which is a result of the timing of the bank processing your transactions!

This truly is a conspiracy for banks to make up for the profits they are not making by overcharging customers and, so far, we have very little government protection to keep them from charging us for this "protection". Sounds to me, using banking online and debit cards need a little scrutiny and we need to go back to paper checks for some payments.

Here's the entire article for your perusal: "Overspending on Debit Cards is a Boon for Banks". I know there aren't many choices available to us when it comes to using debit cards vs credit but at least they're working on the credit card issues...maybe we can look at prepaid debit cards as a serious alternative to this insane world of fees. Try this link "Free Prepaid Credit/Debit Cards" for a post on how they work and a few can help you build a credit history.

If you have any questions or comments, I am always happy to hear from you!

Ta~

Jax