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According to a recent survey, consumers would prefer to be declined when using their debit card rather than be hit with an overdraft fee. This preference occurs regardless of the purchase price.

The results of the survey, conducted by The Center for Responsible Lending, were released in mid-April.

I have covered overdraft fees before in a number of posts, including Overdraft Protection and Colleges Add to the Overdraft Loan Problems. Banks offer many options to handle overdrafts. Unfortunately, the survey found that most respondents are currently enrolled in the most expensive option, a fee-based overdraft loan program that covers overdrafts in return for a $34 fee. People with lower incomes were in this category in even higher percentages.

Alternative options, such as linking your savings or credit card account to your checking account, are often available at much lower cost. The least expensive option of all, declining purchases that would result in an overdraft, is one that most consumers would prefer. Currently, overdrafts are typically approved and a fee is assessed. This is similar to the way credit limits don’t actually limit spending, but rather just trigger fees. 80% of those surveyed would rather have a $5 purchase declined than have it be approved but incur a $34 overdraft fee. Similar percentages (79% and 77%) were found for purchase amounts of $20 and $40, respectively.

Banks often tout their overdraft protection services as protecting consumers from an embarrassing decline of credit. I would much rather be embarrassed than hit with a huge fee. The majority of survey respondents agree. Review your bank account’s overdraft protection features to find the best option for your situation.

As we’ve noted numerous times on this blog, instant gratification is a key contributor to living beyond our means. Having the latest and greatest products and services not only replaces ones that may already be satisfying our needs, but we also pay a premium for them.

There is something to be said for saving and waiting before making a purchase. Not only may this allow us to buy without having to borrow money or use credit, but the anticipation of the purchase may also add to the joy. After waiting (and perhaps getting a better price), we may decide that we don’t need the intended purchase, or we may appreciate it more. Thinking back to Christmas time when I was a kid, imagining the fun I would have with the toy I desired was almost as enjoyable as finally receiving it.

That pattern has continued into my adult life. Even though I’ve wanted a Nintendo Wii since it came out, I have yet to purchase one. Limited availability made the Wii much more expensive. When you were able to locate one, you generally had to buy the system bundled as a package with many extra games. I would much prefer to buy the system separately and then only purchase the games that I choose. Also, since the system is backwards compatible with the previous generation Gamecube, I might not buy any new games at all. Now that the Wii has been out for nearly two years, the market for used games is also much larger. So even though I had to deny myself the indulgence of buying the system when it first came out, I will now be able to get much more for my money. I also will be able to pay cash and avoid the high interest charged by my credit card.

A video game system is just one example of a purchase whereby you can benefit by avoiding the lure of instant gratification. If I had made the purchase right away, I would have spent more and probably lost interest in it by now. Instead, I will get much more for my money, avoid using debt to finance the purchase, and can add the anticipation of these last two years to the enjoyment I will receive if I ultimately do make the purchase. Delaying gratification will serve you well on nearly all purchases.

Between the excitement of moving into a new home and the closure of leaving an old one lies the tedium of moving. Hours are spent boxing up belongings and carefully wrapping fragile keepsakes only to spend even longer opening boxes and unwrapping items just a few days later. Whether the move is city-wide or state-wide, the chore remains an unenviable task.

Worse, the job can be expensive. Serious packers could end up spending hundreds of dollars on packing supplies and moving vans, and aloof movers could spend even more hiring someone to do the job for them. Moving costs are steep, and most of the time, people forget to budget for the multitude of money spent on getting from one place to another. Boxes, gas, padding, and manpower do not come very cheap, and while there really is no way to avoid the expenses of moving, there are certainly ways to curb the spending.

By following the five tips below, you should find the moving process to be easier and less expensive than you would have thought.

Plan ahead.

Before any other step, it is important to make a plan of attack for the moving process. Knowing what you need to accomplish and when tasks need to be completed will give you an advantage over a typical mover. Those who wait until the last minute to plan often find themselves frantically rushing to the moving store and plopping down wads of cash to make their moving problems go away.

Preparation will save you from the same fate. Find out how far you have to travel and how long it takes to get there. Start packing early so you aren’t stressed at the last minute. Label boxes and sort according to rooms to save yourself time and energy when you get to your new place.

The time spent sitting down and getting prepared will be invaluable when it comes to the bottom line. Knowing your needs while you still have time to act affords you an opportunity to save where others spend.

Borrow boxes.

Moving companies and storage facilities sell fancy cardboard boudoirs for a premium. They may be able to sort your wardrobe by style and hue, but for twenty bucks per container, they should launder, iron and hem, too.

Rather than shill for basic corrugated boxes, borrow your packing materials instead. Hit up your employer for their shipping and receiving parcels. Ask your next door neighbor for his leftover moving items. Find out if your neighborhood grocer could spare some broken-down cardboard.
Don’t end up spending out the nose for boxes you will only use for a few days. Similar styles and quality can be found for cheap and for free. No, your books may not be able to fit alphabetically, but yes, they will still get to your new home in one piece.

Scrounge for padding.

Like the extorting box industry, packing padding can also be a scary ride down the river Expensive. For everything from plastic popping pads to turquoise peanuts, look no further than the greedy shelves of your local moving business.

Instead of the expensive supplies one can find in stores, a simpler, cost-effective home alternative works just as well. The couture wrapping paper for plates and fragile wares can run a steep price, yet the same job can be done by wadded newspapers or soft paper towels. Bubble wrap might be fun to use (and abuse), but air-filled plastic bags do the same trick. There is a great alternative for nearly every product found in a packing store, and half the fun is finding creative ways to make things work.

Get a truck for a favor.

Once everything is boxed up, you will need a place to put it all. Again, moving companies are more than happy to help. Giant vans that can be bigger than your new digs would easily hold all your worldly possessions and then some. And, for those who are moving cross-country or across the state, a big van might be a necessity.

However, avoid these money pits if you can. In addition to paying for the rights to use the machine, companies will also charge you for insurance, damages, and many other fine-print items you would have never considered. Plus, it is your responsibility to feed these gas-guzzling behemoths.

If you have a shorter move on your hands, it would be best to call in one of your favors and get a friend’s truck to do the job. You can move a lot of your smaller boxes and lighter items by taking trips back and forth with your own vehicles. And when it comes to the bigger items (beds, couches, pop-a-shots), you should be able to fit everything into the bed of a friend’s truck. Of course, now you’ll owe your buddy big-time.

Employ your friends.

The actual moving part is a tough task, too. Packing and organizing is only a part of the battle; getting your belongings from Point A to Point B is an entirely other story.

Occasions like this are what friends and family are for. Extra pairs of hands and feet would make the job much easier and much quicker, and most of the time, friends and family are more than happy to help. Buying everyone pizza will be much less expensive than paying for professionals. Plus, Joe Muscles might be good at dead-lifting the piano, but he won’t be half as fun as working with your best pals. The dread of moving is much better when your friends and family are sharing your misery.

The US Department of Transportation has begun new initiatives aimed at reducing the delays endured by airline passengers. Those who are delayed will also be compensated in higher amounts.

Many of the delays in domestic air travel are ultimately caused by delays in the New York airports. Even if your delayed flight is from Atlanta to Dallas, the delay may have been caused by a late arrival into Atlanta by a plane from a New York airport. For those reasons, many of the new initiatives are geared towards improving delays in New York. The plans include rerouting planes through Canadian air space to avoid summer storms, opening a second westbound route for aircraft, and auctioning some existing airline slots at LaGuardia Airport.

Also announced was the fact that travelers who are bumped onto a flight that will get them to their destination two hours after their original arrival time will be paid the full price of their fare up to $800. This new rule will go into effect this month. This rule will affect planes that carry at least 30 passengers, which is also an improvement over the previous rule that only covered planes carrying 60 or more passengers. Different compensation limits will apply for international flights as well as bumped passengers who arrive less than two hours late.

Airline industry groups counter that these new rules will raise ticket prices as airlines pass the burden onto consumers. Carriers may be less likely to make an investment in expanding service at certain airports that are notorious for delays. These two factors may make people less likely to travel, but the potentially reduced passenger count may also reduce delays and could lower prices.

The effect of getting bumped from a flight and arriving later than planned is hard to quantify. Some people will simply lose some of their time, while others may miss a once in a lifetime event. While each of those situations has different monetary values, the new rules should make them less likely to occur and offer better compensation when and if they do occur. Either way, it’s worth it to consider person-to-person lending as an alternative to credit cards when financing your personal travel.

Bad habits are often difficult to overcome. Many times, the problem seems so overwhelming that we don’t know where to start. The complexity prevents us from taking any action. Breaking down a bad habit may allow us to ultimately break free from it.

Consider the example of someone living beyond his or her means and accruing high interest credit card debt as a result. A peer-to-peer loan could help you to consolidate the debt, but without eliminating the habits that caused it, new debt could emerge. There are many potential root causes of the problem in this example, such as lack of a budget, indifference towards the situation, desire for elevated social status, or confusing wants and needs. With so many potential causes, it may be difficult to find the actual culprit and take corrective action. As an alternative solution, you could attack the problem from another direction.

The actual spending that leads to your debt probably falls into a number of categories. If you could isolate just one of these and focus on reducing it, you might be able to begin to slowly progress towards your ultimate goal of living within your means. Let’s say that you notice that you often buy a few snacks from the convenience store when you are there to buy gas. Eliminating that one bad habit is probably much easier than trying to eliminate all discretionary spending. Or, you might find that you eat out when you have friends in town, on days you go to the gym, and when there’s a big game on TV. Not eating out for the big games is much more manageable than trying to never eat out.

As you eliminate pieces of your bad financial habits, the severity of the overall habit also goes down. With each additional piece you cut out, you get closer to being able to finally handle quitting the habit all together. This method works with many types of bad habits, but due to the multiple reasons for similar behavior, it works particularly well with bad financial habits. Even if you’ve failed in other attempts to