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#6064 - 10/30/01 01:07 PM Overdrafts and a Nightmare...
Anonymous
Unregistered

I have gotten myself into some deep water financially (like most college students do at one point or another).
I have to write bad checks just for necessities right now. My bank manager is paying them (I have no overdraft protection) and charging me $22 per item - but she does refund me some of these fees when she can. She helps me quite a bit.
Which is why I feel so bad about the state of my account and continuing to write these checks.
Like all other college students, I do get grants/loans/etc. and at the start of the next semester, I plan to purchase some sort of Overdraft Protection or something similar so I dont end up in this jam again.
Is it fair to ask her to "ride this out" with me until the start of the next semester???

BlueEyes1931


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General Discussion
#6065 - 10/30/01 01:16 PM Re: Overdrafts and a Nightmare...
cboynefirstgabank Offline
100 Club
cboynefirstgabank
Joined: Apr 2001
Posts: 147
brunswick ga usa
It seems like your looking for advice here, so alot depends on how deep "deep" is and what is a "necessity" You need to sit down with the manager and a lender and see if you can get your finances in order. It is not fair to ask your banker to waive fees for you and she/he may get frustrated with doing so, when she/he sees you are continuing to write bad checks. If just one of your checks gets returned to Walmart or Winn Dixie or any vendor that participates in the tele check system, your check writing days could be over! Your checks will not be accepted at these places. I would advise you sit down with a financial planner, lender, bank manager and take a look at where you are and where you want to be at the beginning of next quarter. Student loans are not the answer, they should be used for your education, not for daily living expenses (to a certain exent). If your manager sees that you are sincere in wanting to correct your financial woes, your bank may be more willing to work with you over the long haul. Speaking as an officer of a community bank, we have to account for every penny we waive in fees to Sr. management, they might not be as willing to work with you as the officer manager is! Good Luck.

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#6066 - 10/30/01 02:08 PM Re: Overdrafts and a Nightmare...
La. Lady Offline
Diamond Poster
La. Lady
Joined: May 2001
Posts: 1,873
You are, at least, admitting that you do feel bad for the state of your account? But "feeling bad" isn't enough. You say that you do get grants, loans, etc. Yet, you knowingly write bad checks for "necessities". You are going to end up with more problems as time goes, if you don't TRY TO DO SOMETHING NOW. You risk hurting your good name as well as your credit rating. If you are in a small town and you continue to write these "bad checks", people will begin not to accept them from you. Good names and good credit ratings can be hard to bring back to good standing once they are marred.

There are a number of ways that you might help yourself. Write a list of your financial obligations and then a separate list that you consider necessities. (I have a 23 year old. His ideas of "necessities" are different from actual necessities. The same applies to financial obligations.) You might try to get a part-time job, if studies permit. The holidays are coming up and many places look for temporary help.

In any event, you need to seek help from someone. If you are not able to do so with your parents then your banker may be your best bet. Asking a bank manager to waive fees, it isn't fair. Remember, she knows that you are continuing the bad check practice. You should be asking her for help, instead, to get your finances straight. There may be something the bank can do. At the very least, she will see that your are at least trying. She may be willing to view your obligations and your necessities. Once you receive financial advise or assistance, don't hesitate.... take it. You might ask someone you trust to help you keep on track.

Remember, the trouble will only get "deeper" if you don't try to do something now. Next semister may be too late.

Good luck to you blueeyes1931...Hope things work out for you!!!!!!!!


------------------
The views expressed, herein, are not necessarily those of my employer

[This message has been edited by Kathy Lafleur (edited 10-30-2001).]

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#6067 - 10/30/01 02:54 PM Re: Overdrafts and a Nightmare...
Richard Insley Online
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
As the dad of a college student, I understand the financial difficulties you mention and sympathize. As a banker, I totally agree with the advice from previous posters.

Your credit rating is extremely important and passing bad checks will ruin it quickly. Overdraft protection is not a cure--just the beginning of a different problem. Overdraft lines are credit products (like credit cards) with fees and finance charges. Like all forms of revolving credit, the monthly payments barely cover the growing monthly interest without repaying the money you borrowed to cover your checks. This "solution" will quickly spiral out of control unless you address the underlying problems.

If you have gotten into the current predicament by using the credit cards that banks heap on college students, cut them up. Every day adults with good jobs and great salaries declare bankruptcy because they allowed credit card debt to get out of control. Those who post here can recall customers with scores of thousands of dollars in credit card debt. Credit cards are like narcotics--they're so comforting to use, but the pain will come back when the statements arrive each month.

A personal budget is essential for someone who is just starting out. Most likely the PC you took to college has a copy of Microsoft Excel installed. It's a great tool for building a personal income and expense budget worksheet. If you don't know how to do one, ask around or search the 'Net for a model you can adapt. By projecting how much income you expect each month and your expenses (including interest and payments on old debts), you can where you are, financially. If the monthly totals keep coming up red, there's no way to escape the obvious cures of (a) increasing income, or (b) decreasing spending. Only the government gets to ignore this rule.

[This message has been edited by Richard Insley (edited 10-30-2001).]

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#6068 - 10/30/01 04:12 PM Re: Overdrafts and a Nightmare...
Atilla Offline
New Poster
Atilla
Joined: Nov 2001
Posts: 15
MO
I learned yesterday of a friend of my college daughter who was facing a judge to explain his bad check habits. He was given an 18-month jail sentence and fined $6,000. In addition to the great advice given earlier, you need to work closely with any collectors out there in the wings and with any state agency, such as a Worthless Check Division, to avoid criminal prosecution. Communication is the key. I hope you are not to that point yet, but if so, face each creditor honestly and work out a payment plan. These problems don't go away if ignored, they get worse.

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#6069 - 10/30/01 09:17 PM Re: Overdrafts and a Nightmare...
Maria Offline
Platinum Poster
Joined: Apr 2001
Posts: 502
Sylacauga, Al, United States
I have five children, two of which just finished college and one still in college. My advice to them has always been "protect your credit". It is too hard to fix what you have messed up.

If you are like my kids, I admire you for attending college and working hard to get somewhere in life. Why mess it up? Your degree will be your asset and it is an investment, don't set it off with a negative. Employers, such as banks, pull credit reports before they hire you.

I know it is a struggle money wise. You eat peanut butter sandwhiches and macoroni and cheese and don't have change for a can of pop sometimes but again it is an investment you are making for the rest of YOUR life.

The colleges also usually offer financial counseling.

This is more motherly advise than professional. I pray it helps you! Better yet, as I tell my kids, you pray to God for direction.

This is my opinion not my employer.


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#6070 - 10/31/01 03:48 PM Re: Overdrafts and a Nightmare...
Last Mango Offline
Gold Star
Joined: Mar 2001
Posts: 293
Too Far From the Beach
Blueeyes1931,

There is an abundance of great advice here. However, pay particular attention to Brenda’s message. If you continue on this path, you may be in for a rude awakening - in court. At any time, your bank manager may change his/her position and decide not to work with you.

I live in a college town and frequently see the names of people in the newspaper because of their arrest on charges of passing bad checks. A criminal record, in my humble opinion, is far worse than damaged credit.

Do whatever you can to reduce expenses. If you do not have one, consider a part-time job. I know a job may lead to less class time and may extend your college stay, but you will be better off at graduation.

Do the right thing and good luck!


Any opinion expressed above is personal, certainly not the opinion of my employer, and may be worth as much as it cost.

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If you keep living straight from the heart, you will know when to stop and to start.

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