How to
Correct Common Financial Mistakes
You're
working at the office, getting stuff done around the house, or hanging out with
family when - wham! - a phone call, email or text alerts you that something is
wrong with your finances. When a negative financial event hits, don't let it
take you down. Here are some common mistakes and steps to remedy each
situation:
- 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. 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 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 limit
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 debit card providers, then your bank and the
credit card companies. Next, set up fraud alerts with the major credit
reporting companies and get a new driver's license. Finally, if you think
it was 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 further penalties. If you have a
legitimate reason for missing the payment, such as a casualty or disaster
loss, you might be able to reduce your penalty.
Remember,
mistakes happen. When they do, stay calm and walk through the steps to correct
the situation as soon as possible.
