New Regulation Offers Debt Help
A recent survey by Careerbuilder.com found that six in 10 workers are living paycheck to paycheck in order to make ends meet
. This is a dramatic increase from the 49 percent in 2008 and the 41 percent in 2007. Even for workers with salaries of $100,000 or more, the number of people living paycheck to paycheck is three in 10. In addition, 33 percent say that they dont put money aside for savings. That means when unexpected expenses come up, there are very few options. For some, it means taking out the credit card and charging the expense, only to pay it off when the money comes, free. Unfortunately, as credit card companies tighten their credit limits and consumers credit card debt increases, this is increasingly not an option. Inevitably, people pay the bill and hope that they have enough money in their checking account. Often, this results in overdrafts, as the account lacks sufficient funds to pay off the bill.
Overdraft fees are expensive and, when charged in tandem with bounced-check fees, can be downright devastating. According to the Federal Deposit Insurance Commission (FDIC), overdraft fees range from $10 to $38, with a median of $27. The average bounced check fee is $27.04, not to mention late fees that can be charged for late payments of bills because of insufficient funds.
The Federal Reserve recently moved on rules that will take effect in August prohibiting banks from charging unreasonable fees for late payments or exceeding their limits. In addition, the Federal Reserve announced that, starting this summer, banks will not allow consumers to spend more than they have in their checking accounts, unless they have opted for a fee-based overdraft protection.
While these changes might not protect consumers from the embarrassment of having a debit card decline purchasing a $2 cup of coffee when they only have $1.50 in their checking account, it will help them avoid the unbelievably high fees associated with the overdraft. In reality, it is unclear whether or not such transactions would result in a declined transaction, but it is certain that no fees would be charged. For the millions of Americans who are living paycheck to paycheck, this is one fewer headache they have to deal with and one fewer backbreaking fee they have to worry about paying.
Many people who have gotten into financial trouble and have turned to debt settlement programs that help them navigate these deep, difficult waters. A debt settlement company settles your debt with a credit card company for less than the amount that you owe. Greenshield Financial Services is a Financial Health Management Company that specializes in a debt settlement program as alternatives to debt relief, debt help, and bankruptcy to help you learn how to get out of debt.
by: Brian Reed
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