Debit Card Fees or To Swipe or Not to Swipe

I've had a number of conversations as of late concerning a number of topics. I just wanted to touch on one of them. In recent days it has been announced that Bank of America is going to start charging a five-dollar monthly fee for those customers who use their debit card at least once a month. I'm not of the parameters of which accounts will get charged or not but people are up in arms and to a degree its understandable. Given the fact that Bank of America was given a bailout by the government makes the move smell like greed and feels like a smack in the face to consumers. While some consumers can (and will) pick up the picket signs to let their voice be heard by Bank of America, there are a few steps that can be done by consumers that I feel will be beneficial in the long run.

- Close your Bank of America account(s)
This is probably the simplest one of all. Don't like what a bank is doing, then take your money out. Plain and simple. A few years ago, Commerce Bank which now known as TD Bank announced that they were going to start charging Checking account holders in NYC a fee. When I inquired to see if the bank fee was across the board for all account holders in other states, the bank representative told me that only account holders in NYC were being charged. I close my accounts. Don't profile me because I live in NYC. Commerce, TD Bank or whatever they are called is not the be all, end all option in banking. There are options. There are always options.

- Do your research and invest locally
In this age of internet information you can do proper research on just about anything. The same applies to banks. Look around online at local banks in your area to find the best option for you. Maybe you won't have the luxury of having a gazillion ATMs in your backyard as with the big banks but sometimes investing in a small bank is what consumers need. Check out this website Find A Better Bank for help in doing what the name says.

- Go back to relying on cash
This is the big one for me. I believe that consumers have gotten so used to the ease of just swiping plastic that we have forgotten to be fiscally responsible. Why do I say that? You really think its efficient and prudent to swipe your card for a two dollar cup of coffee or a five dollar bottle of beer? As I stated on Facebook the other day:

says that people, especially the younger generation that has gotten so used to just using debit cards in their daily routines, need to get used to carrying cash. Carry cash=no need to use debit=better budgeting=no need to pay fees

You can't imagine the number of people I come across on a daily basis in the bar that don't carry cash. The rely entirely on debit cards. The thought to me is just astonishing. I feel weird when I leave the house and don't have any cash. I hate relying on using my debit and/or credit cards for everyday purchases. I try to use them only when making substantial purchases. If consumers would budget themselves properly there wouldn't be the need to swipe for a cup of coffee. Invest in gift cards. They work just as well as a debit card and can be refilled often earning reward points depending on the store.

If we as consumers take the power from the banks, we'll eventually return to the days where banks courted us for the privilege of putting our money into their vaults. But that won't happen until we stop being lazy and just swiping for the sake of swiping. We need to re-learn and adjust our spending habits. As my friend Jeremy said the other day: Cash is King. Do I think we need to go back to the age of stuffing our mattress full of cash? No, not at all. Banks have their uses (paying bills, storing money, storing items in safe deposit) as long as we maintain control of our situations. We have to live within our means. Not above it. If you use cash, then there is no reason to swipe thereby no need to pay a fee to swipe. If you don't have cash? Then you can't get in trouble by overspending. Right? Makes sense?

It starts with us one baby step at a time. Yes? No?

FH