As I sit here my account is overdrawn by $700. It’s going to continue to be overdrawn because I have $7000 in Payday loans that keep coming out, even though I tried to stop payment on them. I am about to close my account so that I can keep my paycheck this week, and just have my employer give me a check. Is this legal? If I don’t do this my whole check will be gone before it hits the bank and I am a month late on rent.
I am in total crisis mode. Right now, my main concern is getting my rent paid. I can’t do that unless I somehow divert this check. Between almost $1000 in verdraft fees, and stop payment fees that didn’t work I will have nothing left. I am ready to kill myself over this financial delema.
4 Comments Already
April 16th, 2010 @11:17 pm
You undoubtedly have put your self in a bad situation. I’m assuming your pay check is directly deposited and you have signed an agreement stating that your payments will be automatically withdrawn as well. Situations arise often when one must close their bank account and reopen a new one. Identity theft is a good example. Recently I received a letter from bank stating my account was at risk for identity theft. They closed my account and reopened another.(The same day) I had a few automatic withdrawal’s set up that no longer worked once my account numbers changed until I made arrangements(after they contacted me, since I had forgotten about the auto w/drawls) to include my new account number. Good Luck
April 16th, 2010 @11:36 pm
I’m with you.
I’d close the account and maybe even move to a new bank.
Stop the payday loan electronic access to your accounts and don’t allow it again. What’s the worst they can do? Sue you. You don’t have a pot to p in.
The most important things are food, shelter, utilities.
So, pay those first.
In the mean time, talk to the bank manager – maybe they can help you out on the overdraft fees. They don’t have to but it does not cost you anything but time to go talk to them about your situation.
You need to come up with some quick cash….look around the house- what can you sell? Hey, if the dinning room table and chairs will bring $300 – sell them. If it ain’t nailed down and you don’t require it to live – sell it. Hold a yard sale or Ebay it.
Go through your bills. Cut them down to the bare bones. Just the stuff you must have to live. There is a difference between need and wants. Learn what that difference is and get to living with only the needs. The wants can come back when your financial picture is better.
Time to get another job or two. If you work during the week – get a job on the weekends. Cut grass or rake leaves if you have to. The goal is to do anything you can to (legally) earn money.
This is an incredibly stressful situation. But, if you work very hard, are very focused and make a point to live well below your means you can straighten this out. It will take time.
Dave Ramsey is a financial counselor.
You really need to read his book The Total Money Makeover.
Also – listen to his radio program. That’s free! Hey, you may want to even call in and see if you can speak to Dave on air. Here’s the link to be on his show. http://www.daveramsey.com/radio/home/
Please check out Dave’s show and even try to be on it. There is a light at the end of the tunnel….and it’s not a train.
April 17th, 2010 @12:19 am
I’m no expert, but read this thread about closing the bank account before you do it.
http://www.debtconsolidationcare.com/paydayloan/close-account.html
That does not solve your problems. When you got those payday loans, you undoubtedly signed paperwork agreeing to automatic repayments from your bank account. Closing your account could be construed as fraud.