Correcting Common Financial Mistakes
Have you ever been in this situation? Say you're swamped with work, have lots going on in your personal life, or maybe you’re planning a vacation or life event and not thinking about finances. That is, until you receive an alert or reminder that something is not right. When a negative financial event hits, don't let the stress take you down. Here are some common financial mistakes and steps you can take to remedy them:
You overdraw your bank account. First, stop using the account to avoid additional overdraft fees. Next, manually balance your account by reviewing all posted transactions. Look for unexpected items and fraudulent activity. Then, call your bank to explain the situation and ask that all fees be refunded. Banks are not obligated to refund fees, but often times they will, especially for a first time mistake. The next steps vary based on the reason for the overdraft, but ultimately your goal is to bring your account back to a positive balance as soon as possible.
You miss a credit card payment. Make as big of a payment as possible as soon as you realize you missed it. Time is of the essence with late credit card payments - the longer it goes, the more serious the consequences. Then, call the credit card company to discuss the missed payment. You might be able to get a refund of the late fees, and perhaps a reversal of the interest charge.
You forget to file a tax return. Gather all your tax documents as soon as possible, and file the tax return even if you can't pay the taxes owed. This will stop your account from gathering additional penalties. You can then work with the IRS on a payment plan if need be. The sooner you file, the sooner the money will be in your bank account if you're due a refund. If you wait too long (three years or more), any potential refunds will be gone forever.
You lose your wallet. Start by calling all of your ATM, debit, and credit card providers to cancel and replace those cards. Next, set up fraud alerts with the major credit reporting companies and contact your local DMV for a new driver's license. Take time to review the ‘extras’ you keep in your wallet- insurance cards, other IDs, and rewards cards and contact those providers for replacements. Finally, if you think your wallet may have been stolen, file a report with the police.
You miss an estimated tax payment. Estimated payments are due in April, June, September and January each year. If you are required to make estimated payments and miss a due date, don't simply wait until the next due date. Pay it as soon as possible to avoid penalties. If you have a legitimate reason for missing the payment, such as a casualty or disaster loss, you may be able to reduce your penalty by contacting taxing authorities.
Life gets busy, and financial mishaps are inevitable. When they happen, try to stay stay calm and walk yourself through these steps to correct the situation as soon as possible. Call 805-496-2828 for help with any of the above situations.
