Atlanta Bankruptcy Attorney Blog

Lenders can't seem to make up their minds. One day they're handing out subprime mortgages like candy. The next, it seems you need to be a saint to qualify for a loan.

Well, maybe not a saint. But you do need to have a credit score and finances that put you in the top third of borrowers, say Atlanta bankruptcy attorneys. That's right, statistics show that just one out of every three people who apply for a mortgage this season will be approved, according to Wallet Pop. Banks learned the hard way that lending to those of us with not-so-stellar credit can lead to defaults and foreclosures. Today, they're not taking any chances. But there are steps you can take to improve your own chances.

Continue reading "Atlanta Homebuyers Learn Secret to Qualifying For a Mortgage Amid Tightening Credit " »

Consumer spending has been rapidly on the rise in 2011. That means the economy is rebounding, right? Well...not exactly, say Atlanta bankruptcy attorneys.

It turns out that most of the increase is actually due to - you may have guessed it - higher gas prices. Prices at the pump saw record increases in the past couple months, and it's only predicted to get worse. Talk about bad timing - economic growth was just starting to pick up in the last quarter. So how are we supposed to get back on our financial feet when prices keep going up?

Continue reading "Atlanta Consumers Spending More, But Higher Gas Prices Play a Part" »

Dealing with your own debt is difficult enough as it is. Why should you be harassed about someone else's?

It's not an uncommon scenario, say Atlanta bankruptcy attorneys. Even I've experienced it. Whoever had our phone number before us - a woman named Brandi - must owe some money, because when we first moved into our house we got several calls a week from debt collection companies. Fortunately, the calls have almost entirely stopped since we said we did not know anything about Brandi or her debts. But many of us have heard horror stories about (or have first-hand experience with) bold bill collectors who didn't give up quite so easily.

Continue reading "When Someone Else's Debt Burden Becomes Your Problem" »

Have adjustable-rate mortgages gotten a makeover? Lenders say the ARMs that once contributed to the housing market crash may now be an affordable option for Atlanta home buyers.

Back in the 90s, adjustable-rate mortgages made up the large majority of home loans. The problem was, many of these loans came with risky perks intended to lure borrowers - whether or not borrowers could afford them.

Some ARMs allowed for homeowners to defer making their full interest payments, leaving them with an unmanageable balance later on. Others adjusted to new, usually higher, rates every six months. Understandably, many people ended up defaulting on loans, kicking off a wave of foreclosures. By 2009, adjustable rates made up just 2 percent of all home loans. Now, they're on the rise again.

Continue reading "Atlanta Borrowers Taking Out Adjustable Rate Mortgages Again" »

First food prices, then gas - now it looks like ATM fees are on the rise. But the good news is, you can choose not pay the higher price, say Atlanta bankruptcy attorneys.

Currently, using another bank's ATM means about a $2.50 charge from the competitor bank - and a fee of $1-$1.50 from your own bank. But Chase recently shared its plan to hike ATM fees for non-customers in Illinois to an unheard-of $5 per transaction. Rates in Texas, another state involved in the trial, will increase to $4. That means that, for a simple $20 withdrawal, you would be paying 20-25% interest - or 30% interest when you include the charge by your own bank.

Financial wisdom has long held that you can get more with cash than with credit, because you don't have to pay a premium - i.e. credit card interest - to use paper money. But if customers simply roll over and pay these crazy new rates, we could lose the freedom to save money with cash.

Continue reading "Big Bank Raises ATM Fees for Struggling Consumers in Some States" »

It turns out that filing your income taxes can save you money - even if you don't get that refund.

Have you ever gotten a late fee, but not remembered missing the payment? Have you ever gone to return something you just bought - and found you've already lost the receipt? Tax season is the one time when we're forced to organize our receipts, bank statements, and other important documents. If you can figure out how to maintain that organization all year, not only will you be more prepared when the next April 15 rolls around, but you'll have an easier time paying your bills on schedule, making a budget, and even improving your credit, say Atlanta bankruptcy attorneys.

Continue reading "How Atlanta Taxpayers Can Lower Debt By Getting Organizing For Taxes" »

When debt is spiraling out of control, the first thing most folks do is cut out unnecessary purchases. But for a population of consumers known as binge shoppers, it's just the opposite, say Atlanta bankruptcy attorneys.

Similar to the way a person trying to lose weight might pig out on a whole cake or bag of potato chips, binge shoppers blow off steam by hitting the stores. The average person can turn that out-of-control feeling that comes from opening a too-big bill into motivation for getting a better grip on our finances. But emotional spenders deal with the stress by increasing unneeded expenditures - more shoes, more electronics, more toys for the kids, more stuff for the house, more of everything.

The high shoppers get is a momentary escape from the reality of debt - with 'momentary' being the key word here.

Continue reading "Shopping Binges Make Debt Worse For Overspending Atlanta Consumers" »

The good news is that a new FHA program could help underwater borrowers make their mortgages more affordable. The bad news? For many homeowners, it's too good to be true, say Atlanta bankruptcy attorneys.

Known as the Short Refi initiative, the program allows lenders and investors to agree on writing off a portion of a loan's principal balance - at least 10 percent. Borrowers are able to participate so long as they don't currently hold an FHA loan and are current on their house payments. So what's the problem? Loans held by government-backed Freddie Mac and Fannie Mae - in other words, the majority of mortgages in the U.S. - are ineligible.

Continue reading "Is Loan Modification Or Bankruptcy A Better Choice for Atlanta Homeowners?" »

For many underwater homeowners, getting a foreclosure notice in the mail might seem like the end of a long fight. But it's not over until the fat lady sings - or in this case, the judge.

Bankruptcy provides homeowners with a last chance to avoid foreclosure by getting non-mortgage debts under control. As soon as you file your paperwork, bankruptcy stops the foreclosure process while your Atlanta bankruptcy attorney and your bankruptcy judge work out an agreement with your lenders. Most at-risk homeowners ignore bankruptcy because they fear it won't work - or that it will hurt their credit. But according to a recent article on MSNBC.com, it can actually be a blessing in disguise.

Continue reading "For Atlanta Homeowners, Bankruptcy Can Be Last Chance to Stop Foreclosure" »

At first glance, this year's average tax refund of $3,000 might seem like a lot - but for most Americans, it won't last long.

If you simply put your check in the bank, it won't be long before its whittled away by things like rising gas prices and food costs, growing credit card bills and health insurance premiums, and the occasional shopping spree. But there's a way that many of us can stretch our refund, say Atlanta bankruptcy attorneys. How? By using it to get rid of current debt - and prevent future debt.

Continue reading "How Atlanta Taxpayers Can Boost Their Tax Refund" »

Has grocery shopping been leaving you with sticker shock lately?

You're not imagining things - food prices are creeping upward thanks to a variety of factors, from higher oil prices to rotten weather. To make matters worse, most Americans are still reeling from the recession and dealing with debt. Today's rising food and gas prices can feel like the last straw. But while we can't exactly cut food out of our budget, we can lower costs, say Atlanta bankruptcy attorneys.

Continue reading "Atlanta Consumers Battle Rising Prices At The Supermarket" »

Remember the paycheck raise you got back in January? No? You're not the only one.

In 2011, Uncle Sam boosted most people's paychecks by rolling back Social Security payroll taxes from 6.2 to 4.2 percent. Less money withheld meant fatter paychecks. But unfortunately, most of us haven't even noticed, say Atlanta bankruptcy attorneys. That's because the rapidly-rising cost of living is canceling out our federally-funded raise.

Continue reading "Payroll Tax Cut Canceled Out By Increasing Food and Fuel Costs" »

The average rewards card is designed to get consumers to use more credit. But what if it were the other way around?

A new credit card introduced by TD Bank offers an incentive for credit users to lower debt. Instead of giving perks for travel or shopping - which encourages customers to pull out the plastic - this 21.24% APR card offers an interest rate discount for paying more than the minimum each month. In theory, consumers will have more reason to save their money for paying off debt, say Atlanta bankruptcy attorneys.

Continue reading "New Rewards Card Helps Atlanta Consumers Lower Interest" »

FHA loans were designed to make housing possible for more Americans. So what happens when they become more expensive?

Borrowers will soon find out, say Atlanta bankruptcy attorneys. The Federal Housing Administration recently announced plans to hike premiums for the government-insured loans by one quarter of a percent. It might not sound like much, but the increase comes just months after FHA raised its down payment requirement from 5 to 10 percent and added a minimum credit score of 500. It all adds up to make an affordable loan just out of reach for some homebuyers.

Continue reading "FHA Loans About to Get More Expensive For Atlanta Borrowers" »