Friday, December 17, 2010

As the holiday-shopping season is in full force, there is one thing most consumers won’t be leaving home without: an overdraft cushion. After all, Macy’s and other stores plan to be open soon for a continuous shift of 80 hours straight to sell as much junk they possibly can before the December 25th deadline. Rather than face the embarrassment of being declined a purchase, 75% of consumers are opting to pay a fee- sometimes as much as $34- each time they overdraw on their debit-card account according to Moebs Services Inc. The only savings power I can think of, is to buy as much crap you possibly can at once and be charged the overdraft once. Each time you go to a different register you will be slapped with the fee again. We all know you don’t have any money for the junk I mean precious gifts. Lets not be embarrassed on line with a decline. That’s most important in society, not our ability to pay for what we take. Sounds a lot like credit cards.

Previously, that fee would be automatically charged without a customer’s explicit consent. If consumers don’t opt for the overdraft, the bank will now decline the purchase. The large acceptance of overdraft fees comes as a surprise to some, as many analysts and banks expected consumers to balk at the prospect of more fees. However, the truth of the matter is that 60% of consumers have signed on and experts except the numbers to rise in the near future. Yes, we want more options but are we that willing to do it at such a price of putting us deeper in debt. What good is the sale at Macy’s if we are going to pay possibly more than the regular price for some junk after the overdraft fee is applied at the register?
Consumer advocates have questioned even allowing the choice, saying it opens the door for the banks to profit from people struggling paycheck to paycheck. “What concerns us about it is that so often the very people who should least be opting in for overdraft protection are those who do.” said Gail Cunningham, a spokeswoman for the National Foundation for Credit Counseling.” Smaller banks charge overdraft fees of $25 on average, versus $34 for large banks.
Eventually we will all realize that all the junk we bought wasn’t worth it when you take in account all the overdraft fees we accumulated. However, being able to buy whatever you want without being denied by anyone is priceless. Burn that card. We’re all poor anyway. If the Federal Government can just make that tab go higher everyday, then why can’t we do it too. We’re Americans after all.

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