Relief from the $38 cup of Joe!

Consumers have spoken and have been heard!

Effective July 1, 2010 --- of course sooner would be better --- those annoying overdraft fees for small and unimportant purchases will not be covered by overdraft unless you "opt-in" to the overdraft program with your bank.

It's slightly better to have an option to decide whether you are prepared to pay an $30 extra for a $5 cup of coffee as opposed to being stuck paying that much when you thought you'd just simply be declined if the $5 wasn't available in your account!

Now, just remember, you are still accountable for your financial well-being, so if you do "opt-in" stay on top of your deposits and your payments. This new ruling DOES NOT cover important bills like car loan payments and mortgage payments.

I've given you the link here so you have the posted article for yourself: "Fed: banks need customer consent on overdraft fees"

As always, comments are welcome! Anything you'd like to say {Please be nice!} send it to debtcure123@gmail.com.


Ta~Jax

Making the right choice with your finances?

We've all heard the news and read the headlines so it does not bear repeating here. Now we all need to take action to make a few changes in how we think about money and how to use it.

As a financial professional , I've had people tell me that they are in good shape and have a plan for the future. "I've got a 401k for retirement and I have no debt! I'm good!" is what they generally mean which I also know not to be the case for most folks. A few minutes of conversation asking the right questions always reveals the actual situation. Most of us don't understand money, never mind what the options are or what they mean to us.

Now, what I mean to say is simply this - your financial choices may not be bad decisions but they may not be the right ones for you! Taking advice from a source not familiar with your personality and financial ability could take you to a place you had no intention of going.

Here's an article for you to illustrate this "6 Financial Moves That Sound Good But Aren't". The most important thing you must decide when you are faced with a financial choice is whether it will provide you with the result you desire.

Remember, there are things not within your control that may affect how things turn out. It is always best to maintain balance and, if you are unsure about what to do, consult your financial adviser to get an objective opinion.

Hope this helps and we'll post something soon for you with the holiday season just round the bend!

Ta~Jax

$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

So You Don't Think You Can Save?

I had a very interesting conversation with a friend last week about saving money. We were discussing ways in which I might be able to help her save some cash and what she actually thought I said was to take extra money out of her pocket and save it for her.

This seems to be a common leap for most people when asked "what if you could save more money?" Communication is funny that way...what you say and what people hear are two different things but I'll save that conversation for another day.

So, the real question is this, "what if you were able to save money on something you already spend money on, part of your monthly budget, and put that savings to a better use?"

The reason I was asking her is a program I have available (in certain states) that may be able to help people get a better monthly cost for their auto & home insurance.

If you could, for instance save hundreds of dollars per year (let's say the equivalent of half a cell phone bill) and put it towards other necessary items in your budget, do you think it would be worth making a quick, free phone call?

In any case, I think most people are tapped in their budgets and it is difficult to find a way to save money out of pocket to fund your emergency savings account, retirement, or put college tuition plans in place.

This is just one idea, of a few, I know about to truly help others and would love to share with you on a personal basis depending upon your state of residence.

TTFN ~ Jax

How Prepared Are You?

Have you seriously checked your preparedness to weather financial challenges for you and your family?

It's truly easier than you think and I know many people put off taking a good hard look at that part of their life because it's scary. Who really wants to think about the negative things that can occur in your life?

Here are some really easy tips you can use as a guide to test your family's financial fitness in this article, "8 Things To Do Before You Invest Your Money". Many of these tips are truly common sense like developing your emergency fund once you know what your budget limits are monthly.

I don't agree with several points in the article such as dropping your broker once you think you're up on the financial news. Unless you have lots of time to devote to scouring the sources of financial information, you should always have a professional adviser to help you make the best decision for you.

Take a few moments to give it your attention and give yourself a chance to have peace of mind, personal control over your future and the path to hit those goals you have for your family.

If you have any questions or comments, please let me know your thoughts. I'd love to hear them.

TTFN ~ Jax