Writing Bad Checks

Many times most people do not think too seriously of writing a bad check. Some do not even care about the $20-$30 service fees assessed when one of their checks gets returned for non-sufficient funds or NSF as it is commonly known. In some cases, if the bank can prove that a person is intentionally writing bad checks,it can go after the writer for fraud. Repeated writing of NSF checks can also be reported on a person’s credit rating so it is wise to take measures to help reduce and prevent the risk of being negatively affected by a NSF check.

The best way to keep yourself protected from writing a bad check is to make sure that you always keep your checkbook balanced and up to date. That means as soon as you withdraw money from an ATM, do an internet transaction, or write a paper check, make sure that it is recorded in your checkbook register. Some have suggested that you even round the cents up to the nearest whole dollar as you record the transaction in your register to avoid running into a NSF situation over a few pennies. This might cause some problems when balancing your checkbook but it puts you at a very low risk of writing a bad check.

Also, it is a good idea to get a checking account with overdraft protection. This does not mean that the bank will not charge you a service charge when the NSF check reaches the bank. The advantage is that the bank will honor the check and then turn around and assess a $20-$30 service fee on you. If you continue to write the NSF checks even with overdraft protection the bank could frown on this and close your account. Not only that, it could get very expensive for you and it is a sad waste of money.

How To Get Out of Credit Card Debt

Pay Attention to Your Credit Cards

Credit Cards
are a quick fix. They can also be a solution to a problem when utilized wisely; as well as head aches and nightmares for users who are not diligent in their spending.

The number of credit card users is constantly rising each day. The benefits of having a credit card are numerous and are causing people to use them for a variety of tasks from paying mortgages to saving money. However, problems appear when you combine interests and debts with credit card costs. The processes can become time and money consuming without you even acknowledging that.

Many people use one Credit Card to pay off another while others stick to the low monthly payments. Neither of these options is wise as the road to a debt free life will never happen and by the time the debt is completely paid the user will have paid more than the borrowed amount. There are times when a Credit Card is necessary like in the purchase of a home, car, or to fund an Educational goal. Others use credit because they lack the patience or the discipline to save up for that flat screen or name brand item.

Being in debt can be frustrating and yet; people who are already in debt keep piling up the cards having around ten credit cards with no means of paying off those high interest balances. The only way out is to pay off accumulated debt and pay attention to your spending habits.

M.P.Dunleavey, in an article written in the New York Times, “Change Your Thoughts, Change Your Spending” writes, “But before you create the mother of all budgets, I recommend putting a lot of time and thought into examining the way you live, how you have mentally calculated what’s “affordable” or what you “deserve” to spend — and what it would require, financially and emotionally, to live a life based on the money you actually have.”

I’ve had my share of credit card problems so I know first hand how stressful being in debt can become. It’s easy to hand over the card and walk away with a feeling of instant gratification; but this feeling does not last as it can become very stressful and bothersome.

First of all you need to pay off your highest interest debt. Only, after that you can work towards paying off any other credit card. This does not only apply in the case of one credit card. You might have more than one. The credit card that has the highest interest is the one that can cause most problems. This is why the credit card with the highest interest rate must be your main priority. Take it into consideration every time you think about new credit. If you can not cope with it and still decide to get the second credit then problems will immediately appear.

The only way to avoid it is by doing a proper analysis on your financial state. Calculate every sum of money you need to pay each month. After that, compare it with your revenue and your money needs for the same period. If you spend more than you gain then the problems are serious and if the two amounts are similar, you again have problems. You need to know where you stand with your credit card at all times.

The ideal use of a credit card is for emergency use only. The payment is done at the end of each month and this is a perfect situation. Never think of your credit card as your spare money. They
are used to help and not complicate your financial state.