An off topic post

I am just gob smacked (good British term) by what is going on at present.

I don't mean the bank bailouts or the stupendous pension for a failed banker, no this is much closer to home.

Just like lots of other people my personal finances are being squeezed right now. The bill are going up (in spite of what the inflation numbers say) and income is going down.

So keeping enough money in the bank to keep the wolf from the door is a challenge. So last month the Credit card company changed its rules about how much it would take as as direct debit (it is now a higher % of the balance) with the result that my payment increased by £45 per month...result, I breach my overdraft.

The bank immediately withdrew the whole overdraft facilty.

Outcome = 3 bounced direct debits until I managed to get the overdraft reinstated.

OK. This month bank hits me 3 X £30 charges plus interest for breaching the overdraft. That's bad enough but then to add insult to injury they take away the overdraft facility AGAIN.

Why? Because their bank charges (not my spending) took me over my overdraft limit.

Still with me? The bank broke my overdraft limit!

It gets worse.

Because they again withdrew my facility, another 3 payments (so far) were bounced. These of course will be charged to me at another 3 X £30 plus interest. Not to mention the embarrassment I feel to those I wrote cheques to.

The way it looks to me is that a £45 error caused in part by a change by a credit card company, will cost me over £200. Most of that is going to my bank for their charges. By the way, that is about a 10% tax on the regular money that goes in. 10% in 2 months or about 60% if it is annualised! This feels like theft.

Moral of the story 1: Banks are still money grubbing parasitic fiefdoms no matter how cosy their adverts seem on the TV.

Moral of the story 2: The minute that you have a loan or overdraft at a bank (or building society) you are a debt slave. I guess that means most of us, but there has to be a much better way than this to trade goods and services. Bartering anyone?