7 overdraft fees, Bank Please… The end of my relationship with the Debit Card!

A few days ago I got the bank equivalent of a slap in the face… 7 times and I was not happy. It has been a while since getting an overdraft fee, but today I made up for it in spades. Around 9 months ago I setup bill pay and it has been great. However, this last week I changed the pay on date of one of my bills so enough money would be in my account until my next paycheck, that for some reason still went through, arrggg!!

More and more over the last few years I have really been questioning the whole “bank” thing. I mean it used to be that banks were nice to you if you let them hold your money, but not anymore! The fees are out of control, and it is finally forcing me to make a change, no pun intended!

Changes I am going to make:

1. I am going to make sure ALL my fixed bills are in bill pay, which I think means I need to add two more.
2. I am going to calculate how much all of my bill payments add up to including my modest monthly stock investment.
3. Lastly I am going to withdraw the remainder of my balance and buy things with this good old thing called cash (see comparison below).

Cash Versus Debit Card

Cash

• Pros
  • accepted anywhere, from candy stores to garage sales
  • easier to split payments with friends
  • flossier
  • no pin numbers
  • no signatures
  • great smell
  • cool graphics
  • can be folded in cool pieces of origami art
  • physical reminder of how much you are spending, and how much you have left

• Cons
  • can be bulky
  • can’t track as easily
  • if you lose it, its gone

Debit Card

• Pros
  • track payments
  • it can be replaced

• Cons
  • Potential OVERDRAFT FEES if not careful
  • not easy to split bills
  • not accepted everywhere
  • not flossy
  • no physical reminder of how much spending, can lead to overspending

Based on this comparison and the awful feeling of 7 overdraft fees I think I am more then ready to make the switch to cash full time! I will let you know how it goes after a month or so.