How Did I Get Where I Am Today?

I mentioned early on in this blog that divorce, a medical emergency, and losing my job caused most of my financial problems, but things have continued to get worse, and I thought I would touch on a few of the ways I got to where I am today.

Looking back, I can see several little things that add up. Overdraft protection on your checking account seems like a good idea, right? It could keep you from bouncing checks. I've found, though, that it can also be an expensive crutch.

Here's what I mean. My bank will pay up to $800 on overdrawn checks but they charge a $25 overdraft fee for each check and a $5 per day overdraft fee on top of that. This really adds up very quickly.

I've had to use the overdraft protection at times to make my car payment or other important payments on time, but I remember one pay period when I had $150 just in overdraft fees! That money would have covered two to three credit card payments in that pay period.

As I mentioned, the other thing that has been hard for me is adjusting to getting paid every two weeks. I've learned the hard way that it's a very good idea to leave a little cushion in your bank account in case something comes up in that week. And something almost always does come up. Then you're forced to use overdraft (again), charge something on a credit card, or borrow from a friend or family member. It gets you out of the immediate crisis but adds to the overall problem because now you owe more money.

Have you ever done "little" things like this that added up to not so little amounts over the long-term? ~ Mary