Banks Scaring Customers into allowing fees

Rip Off Alert: Chase and Bank of America are both trying to trick customers into "opting in" for rip-off fees, according to the NY Times.

Beginning this summer, banks will have to get your permission before they're allowed to show you a false balance at the ATM or approve debit transactions that will make you overdraw your account. Good news, right? Yes, but these two techniques generate tens of billions of dollars in fees and the banks are doing everything they can to get you to opt in.

To that end, Chase is sending letters to customers designed to scare them into allowing themselves to be ripped off.

"Your debit card may not work the same way anymore, even if you just made a deposit. Unless we hear from you,' the message, emblazoned in large red type, warns," according to the Times' report. "'If you don't contact us, your everyday debit card transactions that overdraw your account will not be authorized after August 15, 2010 -- even in an emergency,' with 'even in an emergency' underlined for emphasis."

When questioned by the Times about the letter, a Chase spokesman gave a laughable response.

"We have begun to reach out to customers and are encouraging them to sit down with a branch banker to make sure they understand overdraft services, which can be confusing. We want them to make an informed decision."

There's nothing confusing about it. You simply don't want to give your bank permission to rip you off!

Bank of America is trying similar ploys to hook people. Their employees are allegedly being re-educated so they know what spin line to pitch to customers who want to opt out.

Remember, these are two banks that only exist in the first place because of the generosity of taxpayers during the bailout! Unbelievable.

Organize Your Finances - Spend Wisely, by Dave Ramsey

On a budget? Still over-spending? Trying to figure out the best way to organize your finances and spend wisely?

Get on a Simple System

I found out that Grandma's way to handle money still works. People used to always use cash envelopes to control their monthly spending, but very few do in today's card swiping culture. The envelope system is a key component of the Total Money Makeover plan because it works. Here are a few simple basics for starting a cash envelope system:

1. Budget each paycheck. Budget is a dirty word to most people, but you must budget down to the last dime if you're going to successfully implement the envelope system.
2. Divide and conquer. Of course, there will be budget items that you cannot include in your envelope system, like bills paid by check or automatic withdraw. However, you can create categories like food, gas, clothing and entertainment.
3. Fill 'er Up. After you've categorized your cash expenses, fill each envelope with the money allotted for it in your budget. For example, if you allow $100 for clothing, put $100 in cash in your clothing envelope for the month.
4. When it's gone, it's gone. Once you've spent all the money in a given envelope, you're done spending for that category. If you go on a shopping spree and spend the $100 in your clothing envelope, you can't spend any more on clothes until you budget for that category again. That means no visits to the ATM to withdraw more money!
5. Don't be tempted. While debit cards can't get you directly into debt, if used carelessly, they can cause you to over-spend. There's something psychological about spending cash that hurts more than swiping a piece of plastic. If spending cash whenever possible can become a habit, you'll be less likely to over-spend or buy on impulse.
6. Give it time. It will take a few months to perfect your envelope system. Don't give up after a month or two if it's not clicking. You'll get the hang of it and see how beneficial the envelope system is as you dump debt, build wealth, and achieve financial peace! See ... simple!

Certainly, some bills may come in at different times of the month, so you'll need to adjust your written game plan to take it one step further. You need to plan the budget based upon your pay periods.

Say that you get paid twice a month. If you can write down which bills you plan on paying from each paycheck, you will not be left with a surprise bill. Spend each month's income and each individual paycheck on paper before it comes in.

By Dave Ramsey

Personal Finance

Personal Finance in America

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Pay for their lifestyles, and;

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TAXES - Save money now

The rules have changed when it comes to filing your 2009 taxes.

Tax experts told 10TV's Jeff Hogan that there are three things to consider as you begin filing your 2009 taxes.

New home-owner Michael Valo will have to consider his first time home buyers' credit. Valo used the $7,500 incentive to buy his home in 2008.

"As a first time home buyer there are a lot of new expenses that I'm just not used to in owning a home and taking care of a home and so this certainly helps," Valo said.

Homeowners who received the tax credit will have to pay it back over time, Hogan reported.

Another thing to remember when filing your taxes is mortgage debt cancellation. If you were in danger of foreclosure, banks can negotiate smaller payments. If those payments are not taxed, however, CPA Darci Congrove said you could have a problem.

"Historically the challenge has been that if you were able to negotiate your debt down, you then had a tax problem," Congrove said.

Now, the government will not treat the difference as income earned, so they won't tax it.

The third thing experts told 10TV to watch for was the new rules for Roth IRA's. The $100,000 income limit has been lifted. You can roll over your full balance of your traditional IRA into a Roth.