Get Ready to Opt-In to Debt

Did you know that this summer you will no longer have to worry about acquiring overdraft fees by your bank when you mistakenly spend more money than you have in your checking account using your ATM or debit card. As of August 15, 2010 bank can no longer allow you to spend more money than you have in your checking account when you use your debit or ATM card.

In fact even credit card companies will longer be able to let you go over your limit without your permission. How does this work?

Well if you would like to have the ability to go over your spending limit on your credit card you will have to opt in to this arrangement. You will have to give your credit card company permission to let you go over your credit card limit. The same goes for your bank. You will have to opt in to overdraft protection.

If you do not select to opt in to overdraft protection or allow your credit card company to let you spend more money than your credit card spending limit you are doing yourself a big favor.

However, the banks don't look at this as a big favor. Why? You may be shocked to learn that the banks actually generated an incredible $20 billion from overdraft fees they came right out of our pockets. In most cases people would rather have their credit card denied when they have no money in their account rather than pay a $35 overdraft fee. These fees were as a result of using your debit card or your ATM card for purchases. When you did not have enough money in your account to pay for the transaction your bank paid for you. Remember, these fees can add up very quickly and the amount of the fee differs from bank to bank but it can be as high as $35 per charge.

And if $20 billion was not enough easy profits for the banks, they earned an additional $12 billion due to helping customers out when they wrote the check and did not have enough money in their checking account to cover it. That is an incredible amount of money being mercilessly drained from our checking accounts. I’m sure you can imagine that the banks are not happy about this new law.

The way many banks are trying to present this new law is that it actually going to create problems for their customers. After all without overdraft protection you could be stuck somewhere out in the desert without any money to help you get to the next watering hole .. They are trying several different tactics. Believe it or not they are going to come up with a great deal of clever ways to try to convince you that you have to have overdraft protection or the world is coming to an end

$32 billion is a huge incentive for the banks to try all kinds of reasoning on us in order to get us to opt in to letting them charge is outrageous fees when we forget how much we have in our bank accounts and spend more than we have.

The best way to deal with not having enough money in your checking account is to not spend it. This is our opportunity to say goodbye to overdraft fees due to our ear responsible banking.

Article Source: http://www.moneyarticlelibrary.com

Discover fast and easy ways to lower your debt without going bald. Visit qualityfinancialservices.net for details on getting out of debt today. It's time to learn the truth about credit debt.

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