True, but a few things. The prime rate is not set by the president but by the Federal Reserve. At that time Paul Volcker was Fed Chairman and his goal was to eliminate inflation from the economy. Which had been rampant since the late 60's .

Reagan to his credit let Volcker do that without interfering or attacking him publicly. The result was that inflation was removed as a threat from the economy.

As for interest rates on credit cards. Probably are higher but the banks also extended credit to a larger number of people.

The banks are having to write off billion on their credit cards because many of the people who they extended credit are now unable to pay.

Credit Cards are essentially unsecured loans. So
the rates will have to be higher.

Look at a thirty six percent interest rate this way. You loan someone 200.00 a month later they pay you back 206.00

Gus - Vegas is a state of mind, not an actual state.

It isn't a very healthy state of mind for most of its denizens either, imo!!

Not to mention video poker. The State of Illinois may have to check itself into rehab to get over its gambling addiction.

I remember it took a constitutional amendment to legalize gambling in Illinois. If I remember correctly it was sold to the citizens by promising that the money raised would go to higher education. Of course once it passed they promptly cut the existing higher ed budget, replaced some with lottery $ and pocketed the difference. Common slime tactic.

Yet GEmom2 has repeatedly encouraged me to take my family there. I'm following my guy Barack Obama's advice and avoiding Las Vegas.

And now they are on to the debit cards...Chase sending out letters out to consumers saying “Your debit card may not work the same way anymore, even if you just made a deposit."
Banks Apply Pressure to Keep Fees Rolling In

As a lesson in fiscal discipline, J.R.B.!! While strolling through lavish hotel properties and watching dancing waters, utilize sage lines such as this favorite of mine: "The casinos didn't build all of this by giving away money!"

There's nothing like seeing people with one hand on their oxygen tanks and the other on the slot machines to take the glamor out of gambling.

Especially when you realize they are wearing diapers just so they don’t have to leave their machine.

I closed my two Chase bank accounts a little over a year ago. One of the accounts, I opened back in 1975, back when the bank was known as The First National Bank of Chicago. I was well into the 18,000 series on my "check numbers".

[Quaint, no? Having a super high "check number"?]

I also closed my corporate checking account that was opened back when the bank was known as "Gary-Wheaton Bank".

Why did I close these accounts? Chase slammed me.

Won't give the details but it was sneaky sleaze of the worst kind.

My college senior daughter still has a Chase checking account. She got a mailing from Chase last week similar to the one in the link that shrugged posted.

But with a twist: It is offering her $25 if she comes in to a Chase branch to "discuss pending changes on her Chase account".

Just taking a SWAG here [silly, wild as* guess], but my hunch is that they will attempt to talk her into keeping the fee-heavy overdraft protection. I told her to go in and take it but feign resistance.

But, with a Dad-warning: Honey, you're Internet savvy. Simply check your balance every single day prior to swiping the card. You've never overdrawn your account in the past. Just stay on top of that and take their $25."

One major thing about "Da Kidz Dese Daze" - balancing ["reconciling"] a checkbook is a totally foreign concept to them. Heck, they don't even keep checkbook registers.

But what many of them do, is check their balances online. They just need some coaching and reminding about lead times for items to clear and the meaning of "collected funds".

BTN: I am in complete agreement with what you said about kids these days. Even my age, you'd think by the time someone hits 30 they might possibly grasp the concept of certain items taking some time to post to an account.

I'm bad about balancing my checkbook, always have been. Unfortunately, it's usually because I'm in a hurry or the person behind me in line is mentally "pushing" me out of their way. So I figure I'll just do it in the car, but by the time I get there I usually just want to get going and am just so cranky that I figure I'll do it at home....which never happens. It's because of times like this that I've often missed an entry or two. I tried rounding up on the change with every entry, to create somewhat of a "safety net" in the account. Unfortunately, said safety net oftentimes gets eaten up by various fees.

So....as a result of this, I've decided to forego the use of a bank. There is no "overdraft" or hidden fees with cash in hand. Granted, it's a bit easier to spend....but if it's physically earmarked for something else (I use post-its), it's a lot easier to pretend it's not there. *shrugs* I can't outlive my means with cash. I even have a credit card that I pay off monthly and earmark my part of my income for those payments. It's a far more functional and effective way to live when you live within your means. I use my credit card and student loans to maintain my credit history, so no worries on that one either. It's incredibly liberating to know that I'm the only one in charge of my finances.

BTN, to be honest, the bank is using this time lag to make coin on the float (although it is very small). These days the transaction times should be immediate, and you shouldn't have to keep a register (except for checks.) The banks just want to hold on to these antiquated ways...

I'm filing this under - "Old Habits Die Hard" but I still maintain a "check register". I am capable of making progress though. I no longer reconcile my checkbook once a month!

Funny that too because the act of sitting down once a month, with the bank statement, a calculator and a pencil was SO ingrained in me, I felt "naked" when I gave it up. I had been doing it - religiously - since 1975.

But, with the advent of 24X7X365 availabilty to near real-time bank balances, it finally sunk in that a daily reconciliation was much better than a once-a-month paper and pencil fest.

I mean, after all, the entire process of reconciliation is intended to catch "mistakes" [nearly always on your own part but every so often, on THE BANK'S PART - Hey, it DOES happen!] at least once-per-month. Catching any such mistakes on a daily basis is much, much better.

Also, since I barely write any paper checks anymore, my bank posts the debit card transactions before I get home from the store!

Heck, even my church offers an "electronic tithing" option now. I take a pass on that because I don't want to be thought of as a cheapskate when they pass the basket.

I can go for weeks with the only paper checks written being the one to my church!

Citi has a useful app for the iPhone and other devices, too. My college student receives daily notices for the debit/checking account balance and additional daily alerts if the account drops below $40. You set up your notifications online.

A lot of these fees can be avoided by educating yourself on available services to help you keep track of your money - or alert you to your lack thereof.

Now if I could just stop our smart student from going to out of network ATMs.

On the out-of-network ATM thing: Mi hija also had that bad habit. And worst of all - she'd take piddling amounts like $20 out. I told her: If you insist on banking with a ripjob outfit like JP Morgan Chase at LEAST use their ATMs -AND- when you use them? Take MORE THAN $20 bucks!

Nothing worse than seeing a slew of out-of-network ATM withdrawls for $20 - all a day or two apart, all followed on by $3 fees.

You know, that cell phone reminder thing is a good idea. We aren't iPhonies but I think they can just send plain old text messages, no?

quote:

Originally posted by GEmom2:
A lot of these fees can be avoided by educating yourself on available services to help you keep track of your money - or alert you to your lack thereof.

Many of these options are only available if you have regular access to certain things. For example, some people don't have text options on their phones....or others don't have e-mail access outside of work. These options become less and less when the technological devices diminish as well.

BTN: Many banks do have a plain text message or e-mail option as well.