Debit Card Danger - KPLC 7 News, Lake Charles, Louisiana

Debit Card Danger

February 1, 2007

Reported by: Britney Glaser

If you have a bank account, you probably have a debit card-but how cautious are you when using this card?  Debit cards make it easy to make purchases both small and large practically anywhere, which can add up to multiple transactions in a day.  But, with record high overdraft fees on customers, a small-dollar debit card transaction can turn into an expensive purchase. 

Spending money has never been easier or faster, with the simple swipe of a card.  The Center for Responsible Lending says that 38% of account overdrafts are a result of debit cards.  Carly Leonards, Commercial Lender VP with Jeff Davis Bank says, "They're just so easy to use that people take them out like a credit card and swipe them and forget to record the transaction."

Lake Charles resident Michael Cox says he does not record his debit card transactions, "Absolutely not, no one does."

With an average fee for overdrafting at about $27, small transactions can add up quickly.  Leonards says, "You'll have to pay a NSF fee for every item that causes you to be in the overdraft."

Now, if you're ready to get a firm grip on your bank account, the first step is to have a budget.  If using a debit card or check is not for you, you might be interested in the "cash envelope system."

John Hixson with Financial Management Professionals in Lake Charles says, "Let's say you're paid twice a month, at the beginning of that period you allot a certain amount of cash for each item: entertainment, groceries, etc., and when you spend that envelope, no more groceries, or no more entertainment."

The most important advice before swiping as Cox says, "Everyday...on anything," is to know what's in your account and live within your means.

Most banks do actually have overdraft protection for accounts, but this does not mean that you are protected from incurring these hefty fees.  You are granted credit to write checks or use your card for more than your actual account balance.

  • More Local NewsNewsMore>>

  • Missing Iowa teen found

    Missing Iowa teen found

    Tuesday, March 28 2017 5:42 PM EDT2017-03-28 21:42:13 GMT
    Gavin Blake Beazer (Source: Iowa Police Department)Gavin Blake Beazer (Source: Iowa Police Department)

    An Iowa teen reported missing over a month ago has been found, his mother confirmed. Gavin Blake Beazer, 16, was reported missing in mid-February. His mother first posted that he was found on Friday.  Copyright 2017 KPLC. All rights reserved.

    More >>

    An Iowa teen reported missing over a month ago has been found, his mother confirmed. Gavin Blake Beazer, 16, was reported missing in mid-February. His mother first posted that he was found on Friday.  Copyright 2017 KPLC. All rights reserved.

    More >>
  • Louisiana Railroad Days Festival set for April 6-8

    Louisiana Railroad Days Festival set for April 6-8

    Tuesday, March 28 2017 5:32 PM EDT2017-03-28 21:32:07 GMT
    DeQuincy Railroad Museum (Source: Facebook)DeQuincy Railroad Museum (Source: Facebook)

    The Louisiana Railroad Days Festival begins April 6 at the DeQuincy Railroad Museum.

    More >>

    The Louisiana Railroad Days Festival begins April 6 at the DeQuincy Railroad Museum.

    More >>
  • BREAKING

    Marsh fire near Grand Chenier believed to be cause of smoky haze over area

    Marsh fire near Grand Chenier believed to be cause of smoky haze over area

    Tuesday, March 28 2017 5:31 PM EDT2017-03-28 21:31:51 GMT
    (Source: KPLC SkyCam)(Source: KPLC SkyCam)

    A marsh fire near Grand Chenier in Cameron Parish is believed to be the cause of smoke in the area. Several viewers have reported the smell of smoke and a haze. The same conditions are present near KPLC's office downtown. Dick Gremillion, head of Calcasieu OEP, said that radar is showing what appears to be a marsh fire in Grand Chenier and that wind conditions are favorable to push the smoke into Calcasieu. Copyright 2017 KPLC. All rights reserved.

    More >>

    A marsh fire near Grand Chenier in Cameron Parish is believed to be the cause of smoke in the area. Several viewers have reported the smell of smoke and a haze. The same conditions are present near KPLC's office downtown. Dick Gremillion, head of Calcasieu OEP, said that radar is showing what appears to be a marsh fire in Grand Chenier and that wind conditions are favorable to push the smoke into Calcasieu. Copyright 2017 KPLC. All rights reserved.

    More >>
Powered by Frankly