Atlanta Bankruptcy Attorney Blog

The good news is that the recession has given many people an excuse to go back to school. The bad news? Some of us are paying dearly for it thanks to a recent spate of financial aid scams, say Atlanta bankruptcy attorneys.

Maybe we have more time on our hands thanks to unemployment. Maybe we're realizing that we need a certain degree to be competitive in our job market. Whatever the reason, a record number of Americans are enrolling in college. But how do we pay for it? With average tuition soaring over $12,000, it's no surprise that most students need some sort of financial help for school. And scammers are taking advantage, according to WalletPop.

Continue reading "Atlanta College Students Falling For Financial Aid Scams" »

The first thing consumers want to know when considering bankruptcy is, "How will filing affect my credit score?" Yet maybe what we should be asking is, "How will not filing affect my credit score?" Especially when we're at risk for foreclosure.

It's no news that bankruptcy ends up on your credit report, but so does foreclosure. And while bankruptcy can pave the way for you to begin repairing your credit (in fact, Atlanta bankruptcy attorneys report that many clients receive offers for credit cards or loans soon after filing) turning your home over to the bank doesn't quite have the same effect.

Continue reading "Effect of Foreclosure on Credit Scores of Atlanta Homeowners" »

American consumers say the economy has changed their spending habits for the better - but is the change permanent?

While 63% of people in last year's Citigroup survey reported that the recession has had a positive effect on their spending and saving behavior, only 52 respondents say the same today. Perhaps now that incomes are rising once again, we feel a little more secure. And maybe some of us are so used to the new economy that we've become numb to possibilities that once struck fear into our hearts - like pay cuts and layoffs. That's understandable. What's not so understandable? The fact that consumer debt is increasing, say Atlanta bankruptcy attorneys.

Continue reading "Are Improved Financial Habits Falling By The Wayside As Economy Picks Up Steam?" »

Many parents are shocked to find credit card offers addressed to their children in the mail - yet they don't think twice about signing their kids up for prepaid debit cards.

Credit card companies are smartly marketing prepaid cards as an easy way for parents to teach teens about money. We load a certain amount of money onto the cards, and our kids have to figure out how to budget it. But here's what they don't tell us. Prepaid cards come with as many - or more - fees as regular credit cards, say Atlanta bankruptcy attorneys.

By signing your children up for plastic at a young age, you may be putting them on a path to future credit card debt. While their name contains the word "debit," prepaid debit cards are not the same as the debit cards tied to your bank account. Creditor-issued cards come with a slew of start-up and use costs, like activation fees, maintenance fees, fees for purchases and reloading -even dormancy fees. From the start, you're showing your kids that they need to pay to, well, pay.

Continue reading "Teaching Kids Money Basics Can Prevent Chronic Credit Card Use" »

Just like early birds get the fattest worms, early tax filers might get the fattest tax refunds.

Even though Uncle Sam is extending this year's tax deadline from April 15 to April 18 due to a Washington holiday, taxpayers may want to file early this year, explain Atlanta bankruptcy attorneys - particularly those who think they're going to be getting money back. This Tuesday, the IRS began accepting returns, even for taxpayers planning on itemizing deductions (though most of us can file as soon as we receive our W2 and 1099s, itemizers had to wait a bit longer this year while the government put some tax law changes into effect). Maybe the idea of doing your taxes now doesn't exactly have you jumping up and down - but here's why it should.

Continue reading "Filing Early Tax Return Can Mean More Money For Atlanta Taxpayers" »

Has your spouse been cheating on you - with his credit card?

Now that the most romantic holiday of the year is officially over, maybe it's time to look a romance-killer - debt. Earlier this month we discussed the fact that, thanks to the recent recession, more and more couples are hiding money troubles from each other. With half of marriages ending in divorce - and almost half of those divorces caused by money problems - it's never been more important to understand how your partner's financial baggage can affect your relationship, for better or for worse, say Atlanta bankruptcy attorneys.

Continue reading "When Debt Comes Between You and Your Spouse" »

We wouldn't dream of taking a road-trip without a map or building a house without a blueprint. So how is it that most of us are running our household finances without a family budget?

Not only is a budget one of the most important tools for getting a grip on finances, it's also one of the simplest. At its most basic level, a budget is just a way to track money coming in versus money going out. Easy, right? Not for most Americans. The problem is that many of us never learned how to build a budget, so what should be something simple actually seems complicated and overwhelming - leaving us to avoid one of the most effective solutions for getting out of debt.

The good news is that it's never too late to learn.

Continue reading "Budget Challenge Offers Chance for Atlanta Consumers to Finally Find Financial Freedom" »

It's been two years since the Credit CARD Act was passed and it seems that credit card interest rates have gone nowhere but up.

Despite the common belief, the legislation didn't put a limit on rates - only the way in which credit card companies could charge them, explain Atlanta bankruptcy attorneys. Today, creditors are not allowed to retroactively hike rates whenever they please. Instead, they must state the rate upfront - only raising interest when a customer makes a late payment. In response, banks are offering cards with much higher upfront rates - like the 59.9% APR offered First Premier. And if you think consumers won't go for it, think again. First Premier has issued 700,000 of its high-rate cards - and counting.

Continue reading "High Interest Credit Cards Lure Atlanta Consumers Struggling With Debt" »

Could it be that having a good credit score isn't all it's cracked up to be?

A recent story by Forbes.com explores the idea that Americans are so brainwashed to believe we need to achieve the perfect credit score that we're actually making our finances worse. How? By forgoing things like saving for retirement and paying down credit card debt, explain Atlanta bankruptcy attorneys.

Most Americans mistakenly believe that carrying a credit card balance is the best way to boost a credit score. As a result, millions of Americans are paying high interest on credit card balances that will take decades to pay off without help from bankruptcy.

Continue reading "Why Credit Scores Don't Always Matter For Atlanta Consumers" »

It looks like Uncle Sam might be learning from his mistakes when it comes to helping struggling homeowners, say Atlanta bankruptcy attorneys.

With the Home Affordable Modification Plan enacted during the recession a seemingly multi-billion dollar flop, the federal government may be turning to a method that's actually been proven to work - bankruptcy. In a bill proposed by Sen. Sheldon Whitehouse, bankruptcy is being explored as an alternative for homeowners in need of modified mortgage terms. And with U.S. foreclosures expected to surpass 12 million next year, it couldn't come too soon.

Continue reading "Senator Suggests Bankruptcy As A Better Alternative To Mortgage Modification" »

How about a bank account with that new pair of socks and order of McNuggets? It's possible at Wal-Mart.

Wal-Mart has always been known for being a one-stop shop, but now the retailer - along with a number of other big-box stores - is taking the designation literally by offering financial services from prepaid cards to check cashing, say Atlanta bankruptcy attorneys. Retailers hope to lure the millions of shoppers who either don't have a banking account or are fed up with the customer service at a big bank. And with Wal-Mart's Money Centers generating between 3 million and 5 million transactions per week, according to MSN Money, it seems to be working. But is it a good change for consumers?

Continue reading "Retailers Begin Offering Banking Services to Atlanta Customers" »

Forget a box of chocolates. The best present you can give your significant other this Valentine's Day is your faithfulness - financial faithfulness, that is, say Atlanta bankruptcy attorneys.

Relationships these days are just as likely to be damaged by financial cheating as by adultery. According to the Minneapolis Star Tribune, more than 50 percent of people report buying something their partner didn't approve of - and 30 percent admitted to hiding said purchase. It seems that when the economy took a nosedive, so did honesty.

None of us get married with the vow, "until debt do us part." So how is it that so many of us are ending up with deep, dark financial secrets?

Continue reading "Is Hidden Debt Taking a Toll On Your Marriage?" »