I broke the bank

[Adam Strange]

My bank called today and said I am overdrawn. The problem was basically this: I bought an expensive but necessary item (a mattress) and didn’t make any adjustments to my spending habits to compensate.

“Spending habits,” to me, probably too often constituted an attitude. I work X amount of hours at a decent job, I should be able to see a movie or buy a CD or refill the ink in my printer even though I only want to print one thing or go to the grocery store and just stock up so I won’t have to go again anytime soon. My coworkers don’t brownbag it; they go to Subway or Quizno’s so I should too. I should be paying more attention to my actual balance.

Still, I feel kind of indignant. All I bought unusual was a bed and that shouldn’t be such a big deal.

Changes I’m thinking about (and I’m open to criticism):
1) Change my car insurance to a bare minimum one for the next few months at least. I haven’t filed a claim in 4 and a half years.
2) Defer one of my student loans (again, only for a few months)
3) Get a credit card and use it wisely. I used to think credit would just amount to another bill to pay; putting off today’s suffering for tomorrow but you need that stuff for an emergency and I could have had the bed sooner and it probably would have been less painful to pay if off over several months.
4) In general, pay more attention to my checkbook instead of just figuring “I’m not living in luxury; I’ll be fine”

Anyway, I also think I should be grateful for all I do have; there are many people with no job and no place to sleep.

[Kitty]

They usually have financing for beds.

[Adam Strange]

They usually have financing for beds.

Again, I didn't want any more bills. I figured I had put enough aside. I was wrong.

[Kitty]

Do you online bank? I always know how much is in my account because I check it online on a daily basis.

[Adam Strange]

Do you online bank? I always know how much is in my account because I check it online on a daily basis.

I should, I will. Like I said, too much of my problem is thinking if I don't do anything extreme, I don't need to pay attention to money.

[wordsmith]

Hi, Adam!

Overdrafts happen (particularly for those in our paltry salary bracket). It's not the end of the world. You'll recover, and you'll, best case scenario, be more careful.

I'm like you in many ways...I feel like I spend soooo little in a discretionary manner, I OUGHT to be able to splurge here and there without keeping too close an eye on it, since it's not a regular occurrence...right? Wrong, unfortunately. It doesn't matter how tightfisted I am...all being pretty thrifty does is lure me into feeling like I'm moneybags and SHOULD be able to get X, because, damn, I NEVER go shopping, I should have piles saved up by now. But the reality of earning what we earn is that you HAVE to account for every penny, or you WILL come up short...I don't have piles save up by seldom shopping, because I JUST DON'T MAKE THAT MUCH. We don't have the luxury of a cushion for mad money...and even things like a fast food sub at lunch become splurges when you've got a very tight budget.

[winneythepooh7]

I try not to use my debit card much anymore, and carry cash on me. I was finding that I would use it daily for lunch, for this, for that (basically little tiny purchases that cash can cover), and I became overdrawn on my account a few times because even though the $$$ was there technically, my charges were still being held, so when a big item would go through (like a check I wrote) it showed up as my being overdrawn.

[MollyMe]

I wouldn't drop my car insurance to the minimum because the minimum here might cover the average car, not the 65K SUVs I see driving around. You don't pick when you get in an accident or with whom.

Credit cards can be a slippery slope. Maybe you just use it for emergencies or the bed, but then you charge more stuff, not tracking it...and soon you have more debt.

Just thoughts to consider.

I do the cash thing a lot. It helps me keep from spending too much.

[Adam Strange]

Thanks everyone,

It's nice to know that others have been overdrawn and recovered. How did that go? How long did it take before you were comfortable? What did you do in the meantime? How did you stop worrying and focus on day-to-day things? I woke up in a serious panic this morning.

Now, aside from the obvious not spending any unnecessary money, I plan on spacing out some bills, not paying them until the actual due date instead of the day I get them. (I just paid a round). My old bank back in the Midwest has extended a line of credit to me again but I have to wait 7-10 business days for the card to get here and that could help me with emergencies and groceries.

I think all-in-all I should be okay by the new year but I‘d like to relax before then.

[winneythepooh7]

Thanks everyone,

It's nice to know that others have been overdrawn and recovered. How did that go? How long did it take before you were comfortable? What did you do in the meantime? How did you stop worrying and focus on day-to-day things?

Ha! When this first happened I marched my ass into the bank and made a huge stink about it. It helped me feel better. Especially knowing I had a great deal of $$$ in my account, I just couldn't "get to it". I kinda think this is really dumb, but what can we do?

[Adam Strange]

I feel like I spend soooo little in a discretionary manner, I OUGHT to be able to splurge here and there without keeping too close an eye on it, since it's not a regular occurrence...right? Wrong, unfortunately.

I think it also might be a college-educated, supposed middle class thing. I assumes the people who worry about money are the very poor and the very rich. I make only a decent sum and I'm okay with that so it shouldn't take up a lot of mental energy. Wrong, everybody needs to worry about money and small everyday things add up to splurging if you're not careful.

[Ciderhillnh]

Ive never overdrawn from the bank (even if I did, I have a $200 floater that I had to deposit to cover me for such instances)

Does anything happen to your credit if you overdraw?
Does the bank charge you for the overdraw?

Just curious what happens if you do.

[EmberMae]

Option 3 plus option 4. Get overdraft protection, as well! many banks offer for free to link to a savings account or a credit card account and automatically tap into them when the checking account is empty so you won't get charged overdraft fees! Overdraft fees are a total waste of money for someone who is already hurting. It's definately important to keep track of your spending as well. If you really needed the mattress right then and couldn't wait until you saved up the money, you should have gotten some financing of some kind. Some furniture stores do have generous financing plans. I've never overdrafted, but my fiance used to before I took charge of the finances. I gathered up all the statements and fees and showed him just how much he threw down the drain in overdraft fees, bounced check fees, etc.

[winneythepooh7]

Ive never overdrawn from the bank (even if I did, I have a $200 floater that I had to deposit to cover me for such instances)

Does anything happen to your credit if you overdraw?
Does the bank charge you for the overdraw?

Just curious what happens if you do.

I was charged like $30.00. I will probably switch banks in the future to the fiance's. I'm just not ready yet to combine our accounts............but that's another thread........

[cache]

Do you do a monthly budget? It sounds like you just wing it, and pay little attention to the small stuff that may add up.

I sold vacuum cleaners in college...OK, I tried to sell vacuum cleaners in college...and I was amazed at the number of people wo had beautiful homes with perfectly manicured lawns and a Lexus or Beamer in the drive way....and it was completely empty inside the house except for some old furniture and milk crates. Seriously. It is more common than you think.

Don't judge your own position based on what you see out of co-workers. The image that they project could be far different from the financial reality that they are living.

[winneythepooh7]

When I was in my early years of college, I would just "round off" my checking account and not count cents. It got me in trouble on occasion. One of my good friends who is 32 still lives this way. I don't know how she does it!

[cache]

When I was in my early years of college, I would just "round off" my checking account and not count cents. It got me in trouble on occasion. One of my good friends who is 32 still lives this way. I don't know how she does it!

There is a bank - I think Bank of America that will do this for you - but in a good way. If you debit something, it will round up and take the change and put it into a savings account. It does this for every transaction. Not a bad idea...

[wordsmith]

It's nice to know that others have been overdrawn and recovered. How did that go? How long did it take before you were comfortable? What did you do in the meantime? How did you stop worrying and focus on day-to-day things? I woke up in a serious panic this morning.

Basically, I shifted money out of my savings to cover the overdraft, and since I get paid weekly, it was only a couple of days before I was flush again. I grew up with so little money that stuff like that doesn't panic me...it probably should more than it does.

My overdraft occurred mainly b/c my student loan people didn't process an annual form I'd sent in on my repayment plan, which temporarily jacked up their automatic debit from my checking account from about $100 one month to nearly $450, and I had no clue until I got a call that I was overdrawn, having factored in the usual $100 payment. So I got that ironed out with the feds, and the next month, it was cool again.

My bank also does overdraft protection, but it's an additonal fee, so I don't do it.

Now, aside from the obvious not spending any unnecessary money, I plan on spacing out some bills, not paying them until the actual due date instead of the day I get them. (I just paid a round). My old bank back in the Midwest has extended a line of credit to me again but I have to wait 7-10 business days for the card to get here and that could help me with emergencies and groceries.

I've really busted my ass to maintain at least a tiny cushion in a savings account, though it's pretty tough on a journalist's pay...but that does prevent me from worrying whether or not I can eat, in an emergency situation. I also found that it's important to space out my bills. I actually got my landlord to shift when my rent is due, so it doesn't hit me at the same time as my student loan.

The most annoying part of the overdraft is getting the call and bad customer service people at the bank talking to you like you're a criminal or a deadbeat. F*ck you, lady, you don't know me or my circumstances.

[weary]

F*ck you...you don't know me or my circumstances.

this is my new favorite quote. i wish i could have it printed on a shirt and wear it all the time.

[wordsmith]

I seriously would like to know at what point it became acceptable for customer service people to talk to you like you're a dog.

[pisces2473]

I seriously would like to know at what point it became acceptable for customer service people to talk to you like you're a dog.
I knew two guys in college who worked over the summer doing cust. svc. stuff for banks and the like. It was horrible, the stories they would hear, and they had to be sorta mean. They were the nicest guys, too.

[pisces2473]

I actually got my landlord to shift when my rent is due, so it doesn't hit me at the same time as my student loan.
Yup, when I was renting from my grandfather, I sent him 1/2 the rent, every two weeks.

[weary]

I seriously would like to know at what point it became acceptable for customer service people to talk to you like you're a dog.

when i can (as in, i'm not at their mercy), i will hang up if they get really nasty. i also write down the date, # i called, the name of the person i spoke to and take notes during the call EVERY TIME. when someone is being unhelpful or rude, i will go up the chain until i get a manager who [usually] is much more helpful and also likely to reprimand their EE that i tell them about. on the flipside, when i get someone wonderful who goes all out, i go up the chain to give compliments, and sometimes even send a letter b/c i know it will go in the EE's file and maybe even get them an award or bonus. i've worked in HR too much...:0

[wordsmith]

I knew two guys in college who worked over the summer doing cust. svc. stuff for banks and the like. It was horrible, the stories they would hear, and they had to be sorta mean. They were the nicest guys, too.

All I know is that if I talked to people in my professional capacity the way I've been spoken to, I'd be fired.

[pisces2473]

All I know is that if I talked to people in my professional capacity the way I've been spoken to, I'd be fired.
Oh yeah, me too. I think these guys were as nice as they could be, but they saw a lot of crap from coworkers.

[wordsmith]

when i can (as in, i'm not at their mercy), i will hang up if they get really nasty. i also write down the date, # i called, the name of the person i spoke to and take notes during the call EVERY TIME. when someone is being unhelpful or rude, i will go up the chain until i get a manager who will usually is much more helpful and also likely to reprimand their EE that i tell them about. on the flipside, when i get someone wonderful, i go up the chain to give compliments, and sometimes even send a letter b/c i know it will go in the EE's file. i've worked in HR too much...:0

I haven't worked in HR, and I do that!

The lady at my bank who told me off, I def. reported. I also always try to make a note when I get somebody who's outstanding, and talk to their higher ups...this summer when I was buying several interview suits, I had the most above and beyond the call of duty salesgirl helping me, and I sent a letter to her manager about how helpful and pleasant she was.

[cache]

I couldn't handle a job like that. When I hear these stories, I only hope that these people can go home and speerate their work from home life.

[beeblebrox]

I agree with all of the comments. Do you have overdraft protection? Citibank has it and it protects from it. Sounds like you definitely need a budget and online banking. I can't live without my online banking and I would never defer my student loan especially if I have an income. I didn't even defer it when I earned about $300 a month on an internship. I want to rid myself on that loan to actually have more money for savings. You should look into some personal finance blogs. They would find your suggestions questionable and help you get out of debt and save money.