Atlanta Bankruptcy Attorney Blog

You can't teach an old dog new tricks - especially when that dog is a credit card company, say Atlanta bankruptcy attorneys.

The last of President Obama's credit card reform laws went into effect Monday - and most of the news is good. In summary:

• Creditors aren't allowed to raise rates on existing balances - so if you're paying 20% on a $5,000 debt, they can't suddenly decided to charge 30%, unless you're late on a payment.
• They must provide a 45-day notice period before altering your account, for instance by changing a fee
• No more fees for maxing out your credit card, unless you fail to opt out of that service
• Customers must receive their bills 21 days before the due date
• On cards with several lines of credit at various rates - for example, maybe one line is for purchases while another is for cash advances - credit card companies have to apply any payment beyond the minimum to the balance with the highest rate

Now here's the bad news - and some advice on making it not-so-bad.

Continue reading "Atlanta Bankruptcy Attorneys Discuss Effects of New Credit Reform Legislation " »

In the market for a new refrigerator? Uncle Sam might be willing to help foot the bill, say Atlanta bankruptcy attorneys.

With Cash for Clunkers no longer, the government hopes to stimulate the economy with a new program that targets household appliances. Starting this year, up to $300 million will be available for folks who purchase new refrigerators, washers, heating and air units and more. The goal is twofold: first, to get consumers out there spending and, second, to replace old, energy-guzzling appliances with modern energy-efficient ones. For example, a brand new washer typically uses 50 percent less water, and spins clothes so efficiently that it also reduces dryer time.

As with any seemingly good deal, though, there are still pros and cons. If your washing machine is about to bite the dust and you can afford a new one, this might be a golden opportunity to save some green. However, if you're already struggling to pay off your credit card bills, you may not be able to afford another major purchase - whether or not you get a sweet discount.

Continue reading "Atlanta Bankruptcy Attorneys Weigh Benefits and Drawbacks to Energy-Efficient Appliance Rebate Program" »

Banks are trying to sell consumers on a deal that really is too good to be true, according to Atlanta bankruptcy attorneys.

This summer, a new law will go into effect requiring customers to "opt in" to overdraft protection plans offered by banks (previously many banks enrolled customers automatically - often without telling them). Problem is, banks count on overdraft protection to rake in more than $20 billion in fees annually. To try to recoup some money, banks are sending out millions of letters trying to convince - and in some cases, threaten - customers to sign up.

What is overdraft protection? It's a feature that authorizes banks to "loan" you money when you overdraw on your account with a debit card - for a fee, of course. Here's why it might be a feature you can't afford, especially if you're already dealing with debt.

Continue reading "Atlanta Bankruptcy Attorneys Cautious of Overdraft Protection Pressure By Banks" »

First, credit cards starting adding annual fees and raising rates. Next, bank accounts started getting more expensive. Now health insurance premiums are on the rise, say Atlanta bankruptcy attorneys. What gives?

Employee healthcare plans went up about 5 percent last year, according to the Associated Press. It's even worse for people who buy their own healthcare - those plans are poised to rise by 50 percent or more. But the worst part isn't that we have to pay more each month for health care - it's that new rates might discourage some of us from paying at all. And that's a risk we can't afford, no matter how appealing the savings.

Americans have a right to affordable health care, whether Uncle Sam is paying for it or not. But meanwhile, canceling our plans to save money won't get us anywhere - except in more debt if the worst happens and we get sick. Fortunately, there are ways to cut back without cutting out your plan.

Continue reading "Save on Health Insurance as Premiums Increase, Say Atlanta Bankruptcy Attorneys" »

Think Uncle Sam will take care of you if you lose your job? You're right - for awhile.

The first $2,400 you receive in unemployment benefits are free for you to keep, according to Atlanta bankruptcy attorneys. Make that $4,800 if you file taxes jointly as a married couple. But after that, you're responsible for paying taxes on benefits just as you would on a regular paycheck. Wondering how much you might owe? You should be receiving a Form 1099-G, which you'll report on your tax return.

Paying taxes even when you've been out of work sounds like a crap deal. But fortunately there are some ways to lessen the blow.

Continue reading "Atlanta Bankruptcy Attorneys Suggest Emergency Savings Funds For Unexpected Taxes" »

Parents of spend-happy teenagers everywhere will breathe a collective sigh of relief Feb. 22.

That's when new credit card legislation goes into effect preventing anyone under 21 from getting a credit card, unless they can prove they have an independent source of income (i.e. not from Mom and Dad) or parental permission, according to Atlanta bankruptcy attorneys.

At first glance, it's a good idea. Credit card companies have for years set up booths on college campuses to prey on financially-uneducated freshman (I only wish there would have been some age limit in place when I got my first credit card - and shortly after, my first credit card debt). But there's one big problem the new legislation doesn't address. Whether you open a credit card account when you're 16, 21 or 50, you're still going to have to learn how to manage your credit to prevent winding up in debt.

Continue reading "Atlanta Bankruptcy Attorneys Say Creditors Are Making It Harder For College Students to Get Credit Cards" »

Forget about your sweetie - why not show your wallet some love this Valentine's Day?

OK, maybe your significant other still deserves a little something. But my point is, you shouldn't have to break the bank just because Hallmark wants you to. And whether you're a diehard romantic or a Valentine's Day skeptic, you can use tomorrow as an excuse to start working towards a financial life that you'll love all year round - particularly if you're in debt right now, say Atlanta bankruptcy attorneys.

Continue reading "Atlanta Bankruptcy Attorneys Offer Advice on Saving Money This Valentine's Day" »

What if you had two choices: Pay the mortgage each month, or pay your credit card bill?

In the past, choosing was a no-brainer - put the money towards the roof over your head. But increasingly, Americans are starting to prioritize credit cards, meaning the mortgage gets left by the wayside, according to Atlanta bankruptcy attorneys.

So what's changed? To start, the housing market. With one in every four homeowners underwater on their mortgage - and thus having no equity in their home - paying off a home loan can feel like throwing money away. On the other hand, paying the credit card bill allows us to keep using plastic to cover food, gas and clothes even when we aren't bringing home enough bacon to afford them.

But even though our new priorities make sense under the circumstances, it doesn't mean they're the best - or only - choice.

Continue reading "Atlanta Bankruptcy Attorneys See More Homeowners Default on House Than On Credit Card" »

Have you ever treated yourself to a shopping spree on a bad day? Or celebrated something positive - like a raise - by blowing a bit more money than you can afford?

It's called emotional spending, according to Atlanta bankruptcy attorneys, and it means you're spending with your heart and not your head. It's the financial equivalent of emotional eating: it tastes sweet in the moment, but the baggage it will leave you with isn't worth it - especially if you're adding to an already large debt.

Fortunately, even the biggest emotional spenders can learn to reign in their habits. What's the secret? Identifying the things that trigger your shopping urges - and then coming up with solutions.

Continue reading "Atlanta Bankruptcy Attorneys Offer Advice For Avoiding Emotional Spending" »

When it comes to the current economy, there's good news and there's bad news, according to Atlanta bankruptcy attorneys.

First, the bad: Employers eliminated 20,000 jobs last month, way more than economists predicted and enough to send the stock market in a small downward spiral.

Now the good: Unemployment had reached a lower level than expected last month, dipping below 10 percent for the first time in awhile. Furthermore, it looks like credit might be easier to come by. Banks are finally taking a break from tightening their standards and restrictions for loan seekers. Of course, they're not easing up on those new rules, either, but at least things aren't getting worse.

Here's what it comes down to: We can't control the rate of economic recovery, but we can control the way we view the economy. We've got two choices. We can use the current economic state as an excuse for struggling financially, or we can use it as motivation to make our finances better.

Continue reading "Get Ready for the Economic Recovery By Improving Your Credit, Atlanta Bankruptcy Attorneys Say" »

Why put off until tomorrow what you can do today - especially when it involves more money in your pockets?

Technically your tax return isn't due until April 15, but you can actually file as early as February so long as you've received all of your necessary documents - like 1099s, W-2s, receipts from charitable donations, etc., according to Atlanta bankruptcy attorneys. Why would you want to torture yourself early, you may ask? Because you have to do your taxes anyway - and the earlier you do them, the earlier you can get your refund (especially helpful for those of us in debt). With the government looking to stimulate the economy, you might be eligible for some new credits and deductions.

Continue reading "Atlanta Bankruptcy Attorneys Say Early Tax Filing Means Early Refund" »

Someone once said that the only certain things in life are death and taxes. Apparently, they forgot that we also have to eat.

After the mortgage, food is probably the biggest part of the budget for most folks, with the average family spending roughly $600 a month in groceries not to mention hundreds on eating out. It's also the most unavoidable part of most budgets, according to Atlanta bankruptcy attorneys. Like it or not, we have to eat - even when the cost of staples like bread, milk and meat are skyrocketing while our salaries remain stagnant.

But just because we have to buy groceries doesn't mean we can't find ways to cut costs. Changing just a few of your shopping habits can keep your pantry - and your wallet - from hitting empty.

Continue reading "Atlanta Bankruptcy Attorneys Offer Advice on Saving Money at the Grocery Store" »