Desperate about overdraft fees

**ErikM02** · 12-15-2009, 01:25 PM

I can't do it any more. I have no idea how to get a handle on my financial situation...

I'm constantly in the hole every 2 weeks when I get paid. I get paid about roughly $2000 a month and am overdrafting $500 a month.

I have overdraft protection which is maxed out and the items I'm paying for is my phone bill, car payment & insurance, 3 student loan payments, rent, and food (mostly ramen oatmeal & pb&j sandwiches)

the overdraft fees are so overwhelming and I have no idea how to handle this. I'm thinking of just cancelling my account and doing money orders for everything. This is getting so stressful that I've had to get medication for depression and thoughts of suicide.

Please help I'm desperate as hell....

**mombottoo** · 12-15-2009, 01:35 PM

STOP right where you are...sit down and figure out where your money goes. Then you need to figure out a budget!!!

If you are in the hole every month due to overdraft fees you really need to get a handle on where your money is going. I agree with you about closing out your account and using money orders to pay your bills. The biggest mistake people make with their checking accounts is thinking that overdraft protection funds is their money.

Could you post your payments here, so responders have a better idea of what you have to work with? Money issues are not worth contemplating suicide...your life is worth more than any amount of money on the face of this earth!!!

**Greebo** · 12-15-2009, 01:39 PM

How are these overdraft fees happening? Are automatic payments being taken out of your bank account? Those need to be stopped. Are you writing checks based on what you think the balance is or what the bank says the balance is at the moment? That needs to stop.

This is a situation you CAN fix. But - there's going to be a mess to clean up for a while.

Lets start with a list of all of your debts, expenses, and most importantly, who besides you has access to your bank account?

**shoiji** · 12-15-2009, 01:40 PM

It can be very frustrating to feel as if you are always treading water when trying to live on what you make.

Try to take a couple of deep breaths for now. Remember there are many great non-profit credit counseling services out there. Try to live off of a clearly devised budget. Writing down and keeping a constant tab on everything you spend on will help you to see where the money is going. Also, try to see if there are any ways you can cut back, maybe on things like tv service, computer service, phone service. Once you have a budget established it may be difficult the first month, getting used to the restraints on spending.

I realize I do not understand you financial situation completely. Which is why I mentioned a non-profit credit counseling service. Don't be afraid or embarrased in looking into resources that may be available to you, such as heating assistance, help with food (many food pantries need help, and can provide you with some extra food). Is there anyway you could move in or have someone move in for a roomate type of situation?

Keeping checking in on this website. There is a wealth of information. Also, please try to remember that many of us here have been in the same situation you are in now.

Also, I hope you have someone to talk to regarding your situation. Stay in touch with us here. I hope you can get some beneficial advice to help you. Remember it takes baby steps sometimes to get to where you want to be.

**pop goes the weasel** · 12-15-2009, 03:19 PM

I agree with the other posters. When I join FV I was desperate with no place to turn. Everything was going to be turned off and no foodin the house. With their help I was able to get a handle on things and get back to a normal life. There are still times that I am short but not like I was. Everyone on here has taught me how to save money and buy wisely. If it weren't for FV I would have nothing. So listen to what they have to say. It won't happen overn ight but it will happen. Thanks again everyone for helping

**old_lady_in_the_shoe** · 12-15-2009, 04:28 PM

I would suggest going to a cash system, until you get your account straight...when you get paid, take your cash and get money orders and pay your bills from that. I would also suggest that you write out all your bills, how much the payments are, and when they are due. If you get paid twice per month, then figure out what has to be paid out of each pay check. Write it out that way so you don't forget anything. Once your account is settled, and you get on a routine of what to pay and when, then you can start using your account again. If you need to close the account, or let it sit until you know that everything has crossed and no other activity will come across it. I agree with everyone else, take a deep breath, because this can be fixed, you can do it! It is always darkest before the dawn.

**Mckeekitty** · 12-15-2009, 07:01 PM

It would be helpful to know the amount of your bills so we can provide some input.

Either there is not enough income, too many monthly costs (mostly likely a combination of the two), or just lousy budgeting.

Banks are making a KILLING on overdraft protection and fees. I would drop the overdraft protection ASAP.

You mentioned that you get paid every two weeks. You may want to request a change in payment due dates so that you KNOW the funds are available before payments are automatically deducted (I'm assuming you have automatic deposits and automatic payments). Most creditors are happy to work with you on this.

I'm always spooked when I see someone mention monthly payments for "car payment and insurance." You pay a premium on insurance when you still have car payments. I've known people who pay more each month for their vehicle and insurance than their mortgage. Much better to own a safe and reliable vehicle that is old as the hills and ugly as sin than to pay out of the nose each month.

Can you defer any of the student loans? That seems to be a good place to start to free up some funds.

But again, it would be most helpful if you could post some hard numbers of your payments.

**ErikM02** · 12-15-2009, 07:07 PM

Thanks for the kind words, it's just so damn difficult (impossible?) to play catch up when I keep overdrafting $500 a month. Everything is set up to withdraw automatically so I will attempt to cancel those...

I've just had a horrible string of luck lately that has completely wiped me out. When it rains it pours and it's been pouring since July...

I have cut every possible expense out of my budget that I could think of, sold all of my belongings except my bed and couch, I'm looking for a 2nd job but it's rough out there. My rent is almost up so I might start sleeping in my car for a while...

I have a game plan of how to get caught up, but like I said it's just the overdraft fees that have made it nearly impossible to even have a fighting chance. I'm just trying to figure out what to do about it.

I really appreciate the kind words and advice. Thanks you guys, let's pray that 2010 isn't even half as bad as 2009 was.

On another note when is a good time to think of claiming bankruptcy? I've accumulated about $10,000 in CC debt and hospital bills and I do not see myself being able to pay on any of this for a while....

**sue s** · 12-15-2009, 07:31 PM

Go all cash for 2 months. Make a list of all your bills and give each it's own envelope. Include food and gas. Sounds like you have more bills than money. Check your Yellow pages for a NON-PROFIT credit counciling service. Don't go to one of those scam places that actually work for your creditors! The Better Business Bureau in your area should be able to give you a reference. They can negotiate with your creditors and set up a payment plan. The only person who can answer the bankruptcy question is you and a bankruptcy lawyer. See if there is a free legal aid society in your area. They can help without charging more than court costs. The first rule is- when you are in a hole, first stop digging. Don't write checks for which there is no money in the bank. Use the cash envelope system until you understand where the money is going. After 2-3 months you should be able to reconcile a balance with your bank.

**lottaLove** · 12-15-2009, 07:33 PM

Is there a way to 'wean' away your overdraft? Like reduce it by 100.00 a month (I have no clue if banks would do this)

If it comes down to it, and you have to not pay your CC bill this month so you can afford food or your heat bill, I would do that. Just take deep breaths, it didn't take 1 day to get to this spot for any of us, and it certainly takes more than 1 day to get out of it. But hang in there, you can do it.

Here is a link to the budget and planning form I used to start out with, I tweaked it to add things that suit my needs better:
http://www.ebottawa.org/en/tools.htm

**Mckeekitty** · 12-15-2009, 08:03 PM

Again, it would be helpful to post the AMOUNTS of your monthly bills. Folks here may have suggestions you haven't considered in eliminating/cutting back.

Re: hospital bills. You should speak with someone in the financial department of the hospital(s) to discuss hardship situations. These bills are often settled (and perhaps forgiven). But you need to be pro-active.

**frugalwarrior2** · 12-15-2009, 08:08 PM

Are you buying food or going to the food pantry. Churches are great sources for help.

**craftypam** · 12-15-2009, 08:34 PM

I don't know if this is the way it is happening to you, but my sons and one of their fiance's does not use a check register. They look online daily to keep track of their balance and if something doesn't clear right away the fiance thinks she has more money. Try using one and when the balance is what it is; don't use it anymore. If its automatic deductions you need to sit down once a week and write them out or quit having them taken out and only send them yourself via internet or snail mail. I'd use snail mail and have a register if I had to pay ONE of those nasty overdraft fees.

Sure wished I lived by you; I'd help you in a minute for free.

**AnW819** · 12-15-2009, 09:01 PM

Close your bank account til you can get ahold of your money. I use to over draft ever week. It was always my fault. You never get over drafts unless you spent more than you should. I close my bank account. Did not use one for a year. If I needed to pay bills I get a Walmart debit card thing ($3) and put money on that. I just opened a bank account back up about 4 months ago and have not and plan not to over draft ever again.

**MaryCarney** · 12-15-2009, 09:16 PM

Originally Posted by AnW819

Close your bank account til you can get ahold of your money. I use to over draft ever week. It was always my fault. You never get over drafts unless you spent more than you should. I close my bank account. Did not use one for a year. If I needed to pay bills I get a Walmart debit card thing ($3) and put money on that. I just opened a bank account back up about 4 months ago and have not and plan not to over draft ever again.

Great idea!!!