Atlanta Bankruptcy Attorney Blog

With money tighter than ever this season, folks are looking for ways to cut back without cutting out Christmas gifts.

On the positive side, sticking to a budget is encouraging us to be less materialistic and more creative, giving homemade and small but thoughtful gifts (not to mention it's a lot easier on our wallet that the standard Christmas shopping spree). But some seemingly "free" presents can actually cost us more money than a store-bought gift - and, in the worst-case scenario, can leave us deep in debt.

Co-signing loans can seem especially appealing during tough economic times. Our friends and family need help buying cars and homes, and we're looking for affordable ways to show them we care. Let's say your cousin is in the market for a new car, but she's having trouble getting the loan. You figure you'll offer to put your name on her car loan in lieu of a physical Christmas gift. It's a win-win, right?

Not necessarily and here's why.

Continue reading "Atlanta Bankruptcy Attorneys Warn That Becoming a Loan Cosigner Isn't Worth the Cost" »

Today, we give thanks for food, family and friends. Tomorrow, many of us are giving thanks for the Internet.

In the past few years, online shopping has revolutionized Black Friday and the rest of the holiday shopping season. Instead of braving long lines and crowded shopping malls on a quest for the best deals early Friday morning, we can find some of the same sales - and some better - from the comfort from our own homes. And it couldn't have happened at a better time.

With most folks already struggling to pay the bills, we don't have much to spare when it comes to shopping for Christmas gifts. Unlike traditional shopping, the Internet allows instant price comparisons, access to way more stores - and potential deals - than we'd ever be able to visit on foot or by car, and less temptation for spur-of-the-moment spending, since there are no distracting window displays or sales people (though those pop-ups can be annoying).

But as with any good thing, there's always a catch - in this case, online scams.

Continue reading "More Online Shopping Means More Online Scams This Season" »

Creditors might soon be giving customers a choice - more interest or more debt?

As you may have noticed, credit card companies are raising rates in retaliation against the new consumer protection laws meant to protect us against unfair fees and term changes (and just in time for the holidays, too - how considerate of them!).

Citibank is taking a novel approach by allowing its customers to forgo some or all of the rate hike by spending a certain amount of money on their credit card each month - up to $750, depending on the state of their credit, according to USA Today. If the program proves successful, other credit card companies could pick it up.

At first glance, it might look like a good deal. Hey, you're spending money anyway, right? So why not put it on your Citi card and avoid paying higher interest? But let's think this through.

Continue reading "Credit Card Companies Ask Consumers to Trade More Debt for Lower Rate" »

'Tis the season for giving, but if many of us don't curb our spending habits, the only thing we'll be giving is our home - back to the bank.

Just as the media was reporting in September that an economic recovery was underway, there were still roughly 4 million homeowners either in some stage of foreclosure or at least three months behind on mortgage payment, according to the Mortgage Bankers Association. Even worse, those foreclosures have been pushing down home values in the cities that are already struggling with the highest unemployment rates.

So why are things getting worse when they're supposed to be getting better? Maybe it's because, bad economy or not, consumers are plain out of cash. Many of us have gone without a raise for years - or worse, without a job for months. In the meantime, we're using credit cards to make ends meet, adding to our already bloated debt burdens. And now with the arrival of the holiday season we're struggling to put fancy meals on the table and gifts under the tree, adding even more financial stress. At some point, homeowners are throwing in the towel. But it doesn't have to be that way.

Continue reading "More Borrowers Default On Mortgages As Holidays Approach" »

I could swear that grocery prices inch higher every day, but apparently (and fortunately for my wallet) I'm wrong - the price of a Thanksgiving meal has actually declined this year. Don't believe me? The proof is in the (corn) pudding.

A survey by the American Farm Bureau Federation found that a family of 10 will pay just under $43 for a Turkey Day spread of bird, mashed potatoes, stuffing, cranberry sauce and the like - that's 4% less than last year and the first decline in nearly a decade. In fact, most food prices have dropped recently due to lower energy costs and the poor economy. According to an American Farm Bureau Federation economist, you can feed your family a hearty Thanksgiving meal for less than the per-person cost of dinner at the nearest fast food joint.

Now, $43 still isn't cheap when you've spent the rest of the year scrimping and saving and generally getting by on as little as possible. But hearing that prices are stabilizing - and in some cases, declining - sure is a relief. When you're struggling to make ends meet, it's easy to think the rest of the world is out to get you, be it the grocery store, the gas station, the mechanic or the doctor's office. But while prices may go up and down, you still have the ability to control your finances.

Continue reading "Consumers Can Be Thankful for Decreasing Grocery Store Prices" »

I guess Uncle Sam never learned that it's not polite to take back a gift.

Recently it was announced that up to 15 million taxpayers could owe money from a tax credit back to the government come tax season. So what happened exactly? Under the Making Work Pay part of the stimulus package, employed Americans received a tax credit of $400 for individuals and $800 for married couples. Since it was a payroll credit, workers received the money by having less withheld on their paychecks - meaning more take-home pay. But somehow, government officials failed to take a few common cases into account when changing the tax withholding tables.

For instance, let's say you're holding down two jobs and making more than 20K at each. You could have received two credits - and will owe Uncle Sam $400 back when tax season rolls around. You may also have received too much money if you're married and both you and your spouse work and file jointly, if you're a retiree with income withheld on your pension or if you're a college student still claimed as a dependent - meaning Uncle Sam also wants a refund.

It's definitely a blow to hard-working Americans. But it's also an excellent reminder of why it's important to plan for the worst (while hoping for the best, of course!), whether you're talking about a paycheck, bonus, windfall or even a government handout.

Continue reading "Taxpayers Could Owe Stimulus Money Back to Government" »

The best deals this shopping season might already be in your closet.

If you're looking for some extra cash, why not just purge some of your junk? You know, the clothes that don't fit, the gifts that just aren't your thing, the outdated cell phones sitting in a desk drawer. Forget gathering dust -- they could be gathering dough!

Just look at the price of gold, now at a staggering $1,119 an ounce. If you've got some jewelry that's just not your style, you'll probably never be able to sell it for more money than right now. Just a hint, though - there are a lot of scammers out there after your money. Take your jewelry somewhere reputable to be appraised rather than a pawn shop or someone you found in an Internet or TV advertisement if you want to get your money's worth. Read on for even more ways to save money this season.

Continue reading "Clean Out Your House for Extra Cash This Season" »

If banks have their way, free checking could become a thing of the past. But we don't have to accept it without a fight.

You know how I discussed the way credit card companies have been hiking up rates in light of the new consumer protection legislation? Since they can no longer charge unfair fees or trick us with sneaky term changes, they're finding other ways to make us pay - i.e., annual maintenance fees and lower credit card limits.

Well, banks seem to be headed down the same path. With Congress discussing some sort of protection against overdraft fees - those sneaky charges banks hit us with when we accidentally charge more on our debit cards than we have in our account - banks are starting to look for other sources of income. After all, most of their profits these days come from fees, not lending. And their latest source of money is the monthly maintenance fee.

Continue reading "Atlanta Bankruptcy Attorneys Wonder What Happened to Free Checking" »

Every fall, we go through the same battle. Do we want to be comfortable or save money?

Comfort used to win out for me every time. I cranked my thermostat up to tropical temps. I'd jokingly tell myself I could afford to splurge because I was saving money by not flying to Hawaii to soak up the sun. But by the end of the winter, when bill after bill had taken its toll on my savings, I wasn't laughing anymore.

In recent years, I've been unable to afford my winter habit. So I took a deep breath and turned the thermostat down a few degrees. Honestly, I barely noticed it. I turned it down a few more degrees and put on an extra sweater. Today, I keep the temperature at about 63 degrees during the day and 55 at night.

I guess the moral of the story is that cutting costs takes compromise. You don't have to give up all your creature comforts - just be willing to try something new, whether that means turning down the thermostat a smidge, taking shorter showers or taking a different approach to your finances.

Continue reading "Compromise to Cut Heating Bill Costs This Winter" »

If you're facing foreclosure, you're officially running out of excuses. But that's good, right?

Just this week, Congress decided to extend the tax credit for new homebuyers beyond its original Nov. 30 deadline. That means you could be eligible for $8,000 back on your taxes when you purchase a property. Better yet, the government has taken note of the thousands facing foreclosure by expanding the initiative to include people who have already owned their houses for five years or more - if that's you, there might be a $6,500 tax break in your future.

Along with the tax credits, Uncle Sam also agreed to extend unemployment benefits for 14 weeks (even longer in states where the unemployment rate has reached 8.5% or more). It's not ideal, but it's a start.

Financially, we've come a long way since the so-called "great recession" began -- and Americans might be more aware of opportunities for financial freedom than ever before.

Continue reading "New Credits, Extensions Available for Homebuyers and Unemployed" »

If you've watched any amount of TV in the past couple years, you've probably caught the ads for FreeCreditReport.com. You know, where the guy and his band are in a pirate-themed restaurant or his parents' basement, singing about how his failure to keep an eye on his credit ruined his life. It's catchy, for sure, but it's not entirely truthful.

Despite the name, FreeCreditReport.com isn't actually free. Signing up to get your credit report also gets you enrolled in a credit monitoring program that charges $14.95 a month. Most customers don't even realize what they've signed up for -- before they know it, they're shelling out $180 a year (a big deal, considering the majority of folks are already struggling to make the mortgage).And the ones who knowingly sign up are led to believe that paying to keep monthly tabs on their credit is a good deal.

What they don't realize is that Uncle Sam offers a way better deal - absolutely free credit reports via AnnualCreditReport.com. That's because the government requires that each of the three major credit bureaus - TransUnion, Equifax and Experian - provide consumers with a free annual report.

Continue reading "Some Free Credit Reports Come With Strings Attached" »

Sometimes it seems like credit card companies are out to get us. Especially when they do something like, oh, increase their interest rates, fees and minimum payments right before the holidays.

Call it a downside to the new consumer protection laws. Lawmakers limited the unfair fees they could charge, so creditors are finding new ways to take our hard-earned money. But in one respect, credit card companies are actually doing us a favor.

Previously, many companies charged ultra-low minimum payments - sometimes as small as 2%. While it was meant to look like a good deal for the consumer, it was actually a better deal for the creditor. The smaller your payment each month, the less you pay towards the principal. The less you pay on the principal, the longer you'll keep paying. But that's changing. With an unstable economy and a rise in customer defaults, credit card companies are deciding they want their money ASAP.

Continue reading "Atlanta Bankruptcy Attorneys Explain How Increasing Minimum Payments Can Work in Your Favor" »