so this is how banks make money
by debt kid on April 9, 2007
Ouch. This was the cash crisis I had last week. My cash situation has since resolved itself (ie…I’m not negative anymore. I still don’t have alot!).
There was another $34 overdraft fee a day later as well for grand total of $204. Tough lesson on watching my cashflow.
Crap.
I’ll write more later tonite. Lots of updates.
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{ 7 comments… read them below or add one }
yes, that sucks.
Oh dear! One way to stop this is to get rid of any accounts or facilities that CAN charge overdraft fees (i.e. check accounts – just use a debit card and cash instead – if the money isn’t there you can’t spend it). Some check accounts have an optional overdraft protection that you can sign up for as well? (At least where I am – it gives you a $500 buffer before they whack you with the fee).
I found your story through Serin’s site. He disgusts me and I hope he lands in prison.
You are doing the right things, but I wonder if you have permanently closed your trading accounts and realized you have/had a problem with gambling?
I am 48 years old. In 1985 I started “investing” similar to you. I had a professional job, earning good money as an engineer. Just like the textbook story, I had an early success $100K profit in one year which in hindsight was pure luck, and that caused me to become overconfident and chase that gain until I ruined myself. By 1990, I was filing bankruptcy with unsecured debt of $90K. I had also quit my job to trade full time then went back to work at a lower salary before filing. I had lost my life’s savings. Lost some parents’ money similar to you too. At least I had a job though.
The reason I mention this is to warn you that after BK unless you truly have your mind set that you should never trade again, you will get sucked back into it like an alcoholic gets back to drinking or gambling addict goes back to a casino, and you WILL start losing money again. Over 22 years of managing my own money, since 1985, I have a NET LOSS to show for it. Forget about inflation, which I have lost greatly to, I would have done better in a checking account earning no interest. I continued to chase bad investments over my life, then I would get out and swear them off, then get lured back in again. A couple of years ago I realized I have a serious problem and should never manage my own money. I need 100% of my money to be completely out of my hands, tied up in CDs or other fixed, government-guaranteed investments, because if I have access to it I will certainly get into things on my own, or get sold things, where I will lose more. I seek out things now which have long commitment periods, or are illiquid like rental real estate, not because they provide the best return but because they work best for my needs.
Just want to make sure you realize your personality may be similar to mine, and while you don’t realize it you may have a gambling problem.
I recovered and became a diligent saver from 1990 through 1999 (saving 60% of gross income in some years), bought a home and had some equity growth in my personal residence which I paid off all debt on in 1995, and due to that was pretty well set when I got laid off in 1999 in high tech and couldn’t get work again. I retired at age 40 with about $900K in assets, almost all from savings not from any investment returns. I retired because I could not get work again except low wage income which I didn’t want to do. Most people who “retire” at 40 are not voluntarily retiring.
Today at age 48 I have about $1.8M in assets, most of that growth coming from appreciation in my personal residence and some inheritance I had. I have had no debt at all since I paid the mortgage off in 1995.
My greatest fear in life is loss of capital, either direct loss or losing to inflation (which I am doing every year I know in a fixed income portfolio, but it is a slow loss.) This is blood money. This is money I need to be able to survive the rest of my life, because I am no longer able to work and earn a good income. Sure, I can get a low wage job, and I would hate myself in it.
Despite all this, from time to time I still read, or watch TV, or hear on the radio about some investment and I want to jump in. I have done so in the past 5 years several times, and lost capital each time. Don’t let this happen to you.
You can shop for fees, perhaps ING or a credit unions or something.
This is a bad sign that you are really hitting the skids. Sorry I thought you would pull out of this without the pain, but I guess you will go through the entire process. Have the bill collectors been calling you yet? I think you are depressed, but that is natural at this time of great loss. Work will take your mind off of things, throw yourself into it.
DK,
I just have to know one thing.. Are you on Drugs? I mean for real.
If so please get off of them, do you drink alot of booze? If so stop..
I am not being mean here, but our public school system is partly to blame here. Most people in America don’t know how to manage money, make money, or to be responsible. DK- you are on the right path; however, I see some patterns here. Please buy Dave Ramsey’s book on becoming debt free.
DaveRamsey.com do it now!
Johnny a friend that will call it like it is.
Dave Ramsey’s web site scares me away. It’s crammed with things you “must” buy and promises miracles.
Plus look at this on his site:
“Question: What could the People of God do for the Kingdom of God if they were DEBT FREE?”
Nice. Lets pretend that God would like nothing more than for you to buy Dave Ramsey’s books.
But of course since he’s on FOX Business Channel and has a southern accent, middle America is all over that shit.
It’s much better to go to a place like Greenpath that will give you one on one help for a very small cost.
He has a radio program that is free, and he gives advice that is free. He doesn’t hide the fact that he makes money off his products. I think you really need to open your mind, let God in your life first, and search for peace through him.
His story is amazing. If you don’t like the idea, just find some program that works. I will say it has made huge changes in my life. I don’t think being southern, white, and male has anything to do with your or anyone else’s finances. He just make good sense. Goos sense scars alot of people.
You can either continue to be a sheep, or a lone wolf. You make the call. It is your life. I will pray for you..
Johnny from Texas..