Atlanta Bankruptcy Attorney Blog

Ways Atlanta Consumers Can Avoid Double-Dip Recession Scams

2010-09-02T04:38:23Z

As if it's not bad enough that we may fall victim to yet another recession, we also have to worry about falling victim to double-dip scams.

With the economy looking poised to take another nosedive, more folks than ever are dealing with recession-related difficulties - things like getting laid off, losing our homes to foreclosure and struggling to pay the bills. And scam artists are taking full advantage, say Atlanta bankruptcy attorneys. Fraudsters know many of us will do anything to earn a steady paycheck or save our home, including giving them our hard-earned dollars.

Fortunately, there's a way to tell the scams from the real deal.

]]> There are more scams out there than anyone can count, but most have a few things in common.

Take the foreclosure scam. You've probably heard the ads on the radio - a company promises they can save your home from foreclosure. What actually happens is they ask you to turn over the title to your house, then promise to rent you your own home until you save up enough money to buy it back. Of course, that's not how it really works. They generally jack up the rent so much that you can't afford to stay there, let alone buy your property back - assuming they even let you rent in the first place.

Then there's the hiring scam. A so-called employment agency guarantees they'll find you a job in exchange for an upfront fee. But after said payment they give you a few unrelated job leads - or nothing at all - leaving you as jobless as before, but with emptier pockets.

What do both of these scams have in common? Each preys upon our emotions during difficult times and each requires us to give up money or an asset upfront. Be wary of a company that urges you to act fast, or that makes offers that sound too good to be true. And remember that a reputable business should never ask for money upfront.

If you're not sure about the validity of a company's offer, feel free to check out their history with the Better Business Bureau. Meanwhile, you can get free advice on handling debt and stopping foreclosure when you sign up for a complimentarypersonal debt analysis with an Atlanta bankruptcy attorney. Unlike quick-fix scams, bankruptcy can lower debt and help make your finances permanently secure - recession or not.

Atlanta Consumers Faced With Higher Credit Card Interest Rates

2010-08-31T04:52:47Z

You win some, you lose some - at least, that's the way it seems with this year's new credit card laws.

On the one hand, recent consumer protection rules will give consumers a chance to get current on credit card payments and remedy mistakes before they're hit with penalties they can't afford, like suddenly rocketing interest rates. On the other hand, with banks unable to increase rates and fees on delinquent borrowers, they're increasing rates for everyone. That means paying more interest on your debt, even when you pay the bills on time.

]]> In the end, the payoff might be worth it. Until recently, being late on a single payment meant your credit card issuer could jack up your rate on your existing balance and charge you late fees to boot. If you had trouble managing your debt before, you'd really have problems now. But thanks to the Credit CARD Act, issuers have to wait 45 days before making changes to your account - time you can use to get things sorted out.

Now that doesn't mean that creditors can't ever raise your rate - they just have to give you fair notice, and they can only raise interest on future purchases, not past ones. And as previously mentioned, credit card companies are recouping lost profits by raising interest rates across the board - on both new and existing accounts.

If you're a good credit card customer, it might not seem fair to pay higher interest. But on the bright side, at least you retain control over your money. Thanks to new laws, you'll know upfront what you'll be paying. Don't like it? Then you can make the decision to wean yourself off credit. Less credit card purchases means lower debt - and less stress. If the debt you already have is making it impossible to get by without credit, you're stuck in a rut - and bankruptcy can offer you a way out. Find out if bankruptcy can be your ticket to a fresh financial start when you try a free personal debt analysis courtesy of an Atlanta bankruptcy attorney.

Can Purchasing Generic Brand Products Help You Lower Debt?

2010-08-28T06:44:09Z

It's probably no surprise that making the switch from name brands to generics can save you a bundle. But despite the still-dragging economy, some Atlanta consumers are continuing to hold out.

Yes, it's true that some generic brands don't get the job done as well - think scratchy toilet paper and leaky baby diapers. But the vast majority of store-brand goods perform the same function at a fraction of the cost, potentially saving you thousands of dollars a year, say Atlanta bankruptcy attorneys. That's nothing to sniff at when you're looking for ways to pay down debt.

]]> Having trouble switching over? It might be easier once you realize how identical some of these products really are. Take pantry staples like sugar, flour and baking soda, for instance. It doesn't matter who makes them, they're made out of the same stuff. Sugar by any other name will always taste as sweet.

So why are some of us so loyal to name brands? Simple: we're brainwashed by advertisers. Medicine is a great example. We're all familiar with Tylenol, for instance. The active ingredient in Tylenol is acetaminophen. Can you guess what the active ingredient in Target's generic painkiller? Acetaminophen. Same drug, same effect. Going generic with OTC medicines can save you a few bucks with each purchase. Going generic with prescription meds, on the other hand, can save you an average of $100 each time.

Ultimately, a smart shopper will choose the products that offer the most satisfaction for her dollar. If that means a snappy slogan and recognizable logo, then more power to you. But most customers benefit from knowing they're spending less on purchases -- from fruits and veggies to cereal to paper napkins - that do the same job. With that extra savings, you'll have more money to pay the bills - or to lower the balance on your debt. Of course, if you discover that your debt is still too big to handle alone, there's no shame in getting help. With the right bankruptcy plan, you can lower debt and free up more money for the rest of your life. Find out for free if bankruptcy is right for you when you try a complimentary personal debt analysis with an Atlanta bankruptcy attorney.

Bank Programs Offer More Flexible Loan Modifications Than Making Home Affordable

2010-08-26T20:16:00Z

Up until now, banks have been the bad guy in the mortgage crisis. But it seems like America's most hated corporations are finally trying to redeem themselves.

Banks are working to offer better loan modification programs to troubled borrowers, according to a recent article in Newsweek. And the timing couldn't be better, with recent reports that half of homeowners in the government's Making Home Affordable program ended up throwing in the towel. Unfortunately, banks won't be able to help every one of the millions of homeowners at risk of foreclosure.

]]> Currently, up to 5 million people face foreclosure - and another few million have already gone through the process. Banks are stepping in where Uncle Sam left off to help these homeowners. For instance, Bank of America has modified 665,000 mortgages since January 2008 - that's almost ten times the amount of mortgages deemed eligible for Making Home Affordable.

Unlike the government program, banks don't require quite the same amount of red tape - including getting bounced around from department to department, having staff lose paperwork and sometimes having to start from square one. And while Making Home Affordable can only help homeowners that meet certain requirements, bank programs can often be tailored to meet the needs of individuals.

Of course, bank programs are still far from perfect. Their biggest shortcoming? As opposed to Uncle Sam, lenders aren't trying to help homeowners - they are trying to help themselves. They're in the business of providing mortgages, not owning homes - and all those loan defaults are hurting their credit ratings. That means that they're only interested in helping a certain kind of customer - the kind in the situation to pay them back. In other words, they're looking for low debt-to-income ratios.

If too much debt is making it hard to pay the bills, your lender might give you the run-around when you try to modify. Fortunately, you have an alternative. For decades, Chapter 13 bankruptcy has been offering struggling homeowners a way to both protect their home from foreclosure and pay down debt affordably. Interested in learning more about bankruptcy? It's free when you sign up for a one-on-one debt analysis with an Atlanta bankruptcy attorney.

Some Atlanta Homeowners Swapping Mortgage Payments for Credit Card Bills

2010-08-24T05:36:23Z

Look at it as flowers rising from the ashes: despite two-plus years of tough economic times, Americans have managed to significantly lower credit card debt.

The credit card debt of an average family is less than $5,000 - the lowest level in eight years and more than 13 percent less than just last summer, according to the Associated Press. To top it off, more credit cardholders are paying their bills before the due date. It looks like all that coupon clipping and budgeting is slowly paying off - at least for most people. However, some of us are making a dangerous trade-off, say Atlanta bankruptcy attorneys.

]]> Paying down credit card debt is nearly always a smart move. When you're able to lower your balance, you'll also lower the interest you owe - and potentially save yourself years of payments. So when is lowering debt not the best idea? When you're using money that normally goes to the mortgage payment to make your credit card bills.

It appears that some homeowners are lowering debt by skipping out on their house payment. Sadly, the benefits of having less debt will be canceled out by the inconvenience of losing their house - not to mention all the equity they've paid into it. While many homeowners mistakenly believe they can get away without making payments - at least for awhile - lenders aren't stupid. If you break your mortgage contract, you'll eventually be expected to make the late payments plus penalties - or watch the bank foreclose upon your house.

So what should you do if you only have enough to pay one of your obligations - the credit card bill or the mortgage? With Chapter 13 bankruptcy, you still might be able to pay both. Filing for Chapter 13 enacts the automatic stay, a legal action that stops foreclosure and protects your house. In the meantime, you'll be able to work out a payment plan that takes into account your individual income and needs, so you can lower debt and get back in control of your finances. Interested in finding out more about bankruptcy? Contact our Atlanta bankruptcy attorneys for a free personalized debt analysis.

Protecting Privacy Can Help Atlanta Facebook Users Avoid Financial Scams

2010-08-21T07:22:01Z

With half a billion people using Facebook, it almost seems like a crime not to join the social networking site. But in fact, that might be the best way to avoid crime.

Most of us don't think twice about posting our names, photos, birthdays - even the week we're going to be gone on vacation - to our Facebook page. After all, what's a little sharing between friends, right? But we forget that millions of other people can see that info, too, say Atlanta bankruptcy attorneys. And with looser privacy settings, more folks than ever can access our personal information - putting our finances at risk.

]]> Recently, Facebook announced that a glitch was letting people view the names and photos of random account holders - potentially letting scammers harvest personal data. And earlier this year, the social networking site made it easier for third-party Web sites to browse our account information. The reality is that Facebook is providing a service - and that service is not to protect your personal information. If you want to keep using social networking without incident, it's up to you to keep an eye out for security.

If you want to stop a criminal, you need to think like a criminal. Look over your account and ask, if I really wanted to wreak havoc on myself, what would I do? For instance, names, birthdates and phone numbers can be recorded and traced to bank accounts. Did you mention you're looking forward to a vacation this month? You're not only entrusting your friends with the knowledge that your house will soon be empty, but also your friends' friends - people you've never met and shouldn't necessarily trust. Ultimately, if someone can use the information to do damage to your well-being, remove it - or make sure that only a select few can view it.

The conveniences of the Internet age come at a cost. Fortunately, we can reduce that cost by keeping close tabs on our personal information. Preventing identity theft is one way to protect our finances; another is to manage debt so it doesn't get out of control. If your debts are so big they're interfering with your life, bankruptcy can help you get a fresh start. Find out more when you try a free personal debt analysis with an Atlanta bankruptcy attorney.

Living Without Phone Insurance and other Financial Products Can Save Money

2010-08-19T04:30:29Z

Most of us don't think twice about paying for health, home or life insurance - and that's a good thing. The problem is when we don't think twice about paying for collision, identity theft, or cell phone insurance.

There are financial products that are worth the risk, and those that aren't, according to a new list by Consumer Reports. And if we take the time to weigh the pros and cons - instead of blindly buying what companies tell us to - our savings might well exceed the extra gamble, say Atlanta bankruptcy attorneys.

]]> Take collision insurance. Most car owners pay several hundred dollars a year for it. That makes sense if you're driving a new car. But if - like many Americans - you're driving a used, somewhat beat up vehicle to save money, you might be better off forgoing that particular policy. See, collision insurance typically covers no more than the value of your car, minus a deductible. So if your insurance company values your beater car at $800 and your deductible is $500, the maximum you could get for repairs is $300. If you're paying over $300 a year for collision coverage, you're losing money.

How about protection against identity theft? That's got to be a good thing, right? In theory, yes - but as it turns out, paying $200 a year for identity theft insurance might not protect you any more than you could protect yourself by simply being cautious about where you use your credit and debit cards and keeping an eye on your statements to catch suspicious behavior before it spirals out of control.

With so many folks depending on pricey cell phones like iPhones and Blackberries, it's no wonder that we're willing to shell out $100 or more to insure our electronics. But when you factor in deductibles and the fine print - for instance, did you know that just because a company promises to replace your phone doesn't mean they'll replace it with the same model? - you might be better off just sucking it up and buying a new phone if something happens.

In the end, only you can decide what risks are worth the cost. Of course, if you can't afford the most basic insurance needs - like health insurance to protect the well-being of your family - then it's time to get financial help. If you're struggling with debt, bankruptcy can be the fastest way to a fresh start. Learn more today when you sign up for a free, no-obligation one-on-one debt analysis with an Atlanta bankruptcy attorney.

Can Setting Credit Card Limits Stop Atlanta Consumers From Overspending?

2010-08-17T07:49:22Z

Until now, credit cards have been both a blessing and a curse for consumers - a blessing because you can use them to buy what you need without cash, and a curse because they make it so easy to buy things you don't need without cash.

But all that could change thanks to inControl, a new program by MasterCard that would allow shoppers to set a monthly credit card limit for particular types of stores or purchases. When your limit is reached, your credit card simply stops working - no overspending allowed. If you've ever had trouble sticking to a budget, this might just be your ticket to financial freedom.

]]> Maybe you have a weakness for dining out. You'd like to set a restaurant budget of $200 a month, but you always seem to go over. With inControl, you'll be forced to honor your spending plan. Are you a sucker for sales at the mall? Give yourself a limit that you can't exceed - no matter how good the deals are. You'll still have the convenience of a credit card - no ATM stops or bounced checks required - but without the total freedom that makes overspending all too easy.

That said, the program still comes with some uncertainties. Will consumers listen to their limits, or will some simply whip out a debit card or run to the ATM for cash when they've maxed out their card? Will banks charge a fee for using the program, since less credit card purchases mean less profit from interest and overspending penalties? Only the future will tell.

Ultimately, the more opportunities consumers have to exert control over their finances, the better. Of course, you don't have to wait for MasterCard's new program to freshen up your finances. Make a budget, keep a close eye on your spending and make sure you can afford to make more than the minimum payment on your credit card bills each month. And if your credit usage ever does get out of control? Consider reining it back in with bankruptcy. Find out if bankruptcy offers the help you need to lower debt and free up more of your paycheck each month when you try a free personal debt analysis courtesy of an Atlanta bankruptcy attorney.

Slow Economy Might Pay Off for Atlanta Workers

2010-08-14T04:45:03Z

If you've managed to keep your job in this economy, you probably already consider yourself lucky. But now consider yourself luckier.

As it turns out, the recession might actually offer positive benefits to the employed. According to the New York Times, wages are up, inflation is down and layoffs have all but leveled out. That means that, if you play your financial cards right, you might be able to walk out of the Great Recession in better shape than you walked into it.

]]> If you read the news today, you'll hear all about double-dip recessions, falling consumer confidence, and a slew of other bad things. But here are the uplifting facts no one is talking about.

Sure, unemployment is high - but hiring has dropped more than layoffs have risen. What does that mean, exactly? Most of the unemployed are people who lost their jobs six months ago or more and haven't been able to find new work - not workers who are in the midst of getting let go. That means your job may be more secure than you think.

And while paychecks have declined in every other recession since the 1970s, wages actually increased by 5 percent since December 2007 - the official start date of the Great Recession. It seems that with fewer employees on the payroll, companies can afford to increase pay a little bit here and there. At the same time, inflation has decreased to zero - meaning we have more purchasing power with those bigger paychecks. Have a four-year degree? The news is even better. Unemployment for college-educated workers is less than half what it is for the population as a whole.

In summary, there's a silver lining to everything - even an economic recession. If you're still gainfully employed, why not take advantage of your current financial security to get your ducks in a row? Come up with a budget, start a saving plan and pay down your debt. Of course, if you find you've got too much debt to handle on your own - or if you do end up losing your job down the road - there's still hope. Bankruptcy can help you free up money by lowering debt - or in some cases, discharging it completely. Find out if bankruptcy can offer the fresh financial start you need when you try a free personal debt analysis with an Atlanta bankruptcy attorney.

How Spending Less Can Lead to Greater Happiness for Atlanta Consumers

2010-08-12T05:47:56Z

Would it make you happy if I told you that you'll be getting a raise? How about if I said you've won the lottery? If you're like most Americans, the answer is a resounding yes.

But, believe it or not, the recession has revealed a little secret about the key to happiness, according to Atlanta bankruptcy attorneys. Sure, having more money in your pocket can help you put gas in your car, groceries in your cart and bills in the mail. But, as it turns out, having more money to spend probably won't make you happier.

]]> Not only that, but spending less can actually make you happier. Just look at the life of Tammy Strobel, a woman featured in the New York Times this week. Strobel and her husband gave up steady jobs, two cars and a two-bedroom apartment in California for freelance work, a tiny studio apartment and two bikes. She makes half as much money - but she's twice as happy.

Experts speculate that, with less money to spend, we're really slowing down and thinking about where our dollars are going. Instead of spending haphazardly, we're choosing to spend on the things that give us most satisfaction - things like experiences rather than material objects, items that we've been coveting for a long time instead of random buys, and stuff we really want versus stuff we feel we need to keep up with the Joneses. Coincidentally, these types of purchases not only lead to greater happiness, but they also tend to lead to lower debt - which also keeps us happy.

It's something to think about the next time you're tempted by that new gadget or pair of shoes. Ask yourself if the purchase in question will make you happier down the road than the satisfaction you could get from not making said purchase - and saving your money for something better. With less wasted on impulse buys, you'll have more to tackle your debt burden.

So what if you've got too much debt to pay down on your own - even by cutting spending? Consider bankruptcy. The right bankruptcy plan can provide an affordable payment plan and legal protection. Find out if bankruptcy can offer the fresh start you need when you try a free one-on-one debt analysis with an Atlanta bankruptcy attorney today.

Filing for Chapter 13 Bankruptcy Can Stop or Prevent Foreclosure for Atlanta Homeowners

2010-08-10T07:55:41Z

The number of underwater mortgages is finally going down - but those of us facing foreclosure aren't out of the woods yet.

In a rare bit of good housing news, Zillow.com recently announced that the amount of homeowners with underwater mortgages - in other words, those of us with a home worth less than what we owe on our mortgage - decreased from 23 percent to 21 percent in the last quarter. Fewer homeowners with negative equity means we might finally start seeing less foreclosures in coming months, according to Atlanta bankruptcy attorneys.

On the other hand, that doesn't do much to help folks currently - or soon to be - at risk of foreclosure.

]]> With a sluggish economy, high unemployment and many homeowners swamped with credit card debt and other obligations, many people are simply unable to make mortgage payments right now. Unfortunately, lenders are none too sympathetic. When you fail to make your house payment - or even your property taxes - you violate your mortgage agreement, giving your lender the right to repossess your property, sometimes with almost no warning.

Since the recession began, foreclosures have become a normal part of our daily lives - and so have myths about how to stop them. One of the most popular rumors is that if you stop making your mortgage payments for awhile, it's no big deal. Unfortunately, that's merely wishful thinking. While it might take a while for the foreclosure notice to come in the mail when you stop making payments, it will arrive sooner or later. And even if you're able to start your payments back up again, you'll now owe late fees and other penalties - and your lender may even require that you pay off your mortgage in full in order to regain rights to your house. If you're unable to pay up, you could lose your house for real - and all that equity that you've paid into it over the years.

That's the scary part. But here's some relief. You can still stop foreclosure, whether you're thinking about skipping a payment or you've already received that dreaded foreclosure notice. With a Chapter 13 bankruptcy filing, you can trigger a legal action - known as the automatic stay - that will protect assets from lenders, including your house. Find out for free if bankruptcy is a better solution when you try a complimentary personal debt analysis with one of our Atlanta bankruptcy attorneys.

Rewards Cards Can Still Pay Off for Careful Consumers

2010-08-07T05:17:45Z

There's good news and bad news about rewards cards.

First the good news. Despite worry that banks would start ditching rewards cards to make up for their reduced ability to charge fees under the Credit Card Act, most banks haven't changed their programs, say Atlanta bankruptcy attorneys.

The bad news? Rewards cards can be a little bit tricky - sometimes they help you save money, sometimes they make you pay.

]]> At first glance, it seems that all rewards must be a good deal. How can you go wrong by getting money back, right? That depends.

First, make sure you have the right card. Obviously, if you're a frequent flyer on a particular airline, you could put their card's mileage points to good use. If you have kids, a Disney card that helps pay for a yearly trip would make sense. But keep in mind that different cards offer different values - for instance, sometimes your points may come out to a 5% reward for each dollar you spend, while others might offer less than 1%. Some cards may allow you to accumulate an unlimited amount of rewards, some may max out at $500. And make sure to read the fine print - when you finally book that dream vacation, you don't want to find out all your travel points just expired.

Most importantly, don't forget that you're technically buying those rewards points. If you're purchasing things that you already need, then it's like you're getting a rebate. But purchasing things you don't really need just to get points doesn't make sense. Nor does earning rewards when you carry a balance - any money you get back is being canceled out by all that interest.

In the end, rewards points can be helpful or hurtful - you have to make the call. And if you ever do end up with too much credit card debt, it's up to you to get help. The right bankruptcy plan has the power to put you back in control of your finances once and for all. And right now it's free to find out more about bankruptcy when you try a complimentary personal debt analysis with one of our Atlanta bankruptcy attorneys.

Small Savings Adds Up to Large Debt Relief for Struggling Atlanta Consumers

2010-08-05T04:57:53Z

By now it's no secret that Americans are cutting back to save money - with most of us struggling to manage our mortgage payments, credit card bills and other debts, it's not like we have a choice.

But while we've cut out obvious costs like gym memberships, cable and land lines, many of us are missing smaller, less visible opportunities to save. But sometimes those little things add up enough to put us back in the black, say Atlanta bankruptcy attorneys. Take the following examples.

]]> With the hot weather upon us, it seems like a no brainer to drink more water. But when most of us automatically reach for plastic bottles, we're dehydrating our wallets. If an average flat of water bottles costs 5 bucks at the store, a family could burn through $20 in water a month. It might not seem like much, but think about it: you're paying for something that comes free out of your sink or fridge. Prefer the portability of bottles? Consider buying a nice reusable one.

If you've got bills to pay, chances are you're making a lot of trips to the post office - and some of those trips involve buying stamps. By switching all of your bills to online payments, you'll save on stamps, gas money and the time it takes to wait in line at the postal counter - let's call that another $20 a month in the piggy bank.

Everyone needs a little entertainment in their lives - especially now. But we shouldn't have to pay for it. Most of us are accustomed to purchasing DVDs at Target or renting them with Netflix, buying books on Amazon or paying to have magazines sent to our mailbox. But we can have all of those things for absolutely free - all we have to do is take a little trip to our local library.

By just making three little changes, you could easily save $700 or more annually. And I'll bet once you start looking, you could find a few more subtle ways to save money - for instance, brewing coffee at home instead of buying it out, washing your car at home instead of at the gas station, or trimming your own bangs or doing your own nails. Of course, if you ever find that you can't cut another cent - but you're still having trouble finding enough to pay the bills - bankruptcy might be your best solution. The right bankruptcy plan help you start lowering debt - and, in turn, your monthly bills. Want to know more? It's as simple as trying a free personal debt analysis with an Atlanta bankruptcy attorney.

How Atlanta Debit Users Can Avoid Identity Theft at the Gas Station

2010-08-03T04:57:43Z

The price of gas is always going up - but lately, it's getting especially high for some debit card users.

That's because more and more folks who use debit to pay at the pump are becoming victims of identity theft, according to Atlanta bankruptcy attorneys. Criminals can now attach a device called a skimmer to gas pumps. When you enter your card and PIN, a tiny camera in the skimmer reads the information - and gives scammers all they need to take money right out of your bank account. When you're already low on cash and struggling to manage your debt, having some thief steal your hard-earned dollars is like rubbing salt in the wound.

Despite its risks, debit can be a more responsible alternative to credit. The key is to be careful when and where you use it.

]]> Debit offers the convenience of credit, with the accountability of cash. Since you're limited to the amount in your bank account when you use debit, you don't have to worry about racking up debt - and interest - that you'll spend the rest of your life paying off. At the same time, you don't have to have cash in your pocket to make a payment. And unlike cash purchases, your debit card purchases will show up on your bank statement, making it easy to keep track of your spending habits.

It's true that these benefits come at risk of identity theft, but fortunately there are ways to mitigate the risk. For instance, try to avoid using debit at gas stations and ATMs, where thieves can attach card-reading devices to card slots. When you enter your PIN at the cash register, use your other hand to shield the code from view. Most importantly, keep a close eye on your bank statements so you can identify any suspicious charges or withdrawals. The sooner you let your bank know about theft, the faster they can stop the theft, contact the authorities and hopefully get money credited back to your account.

Not only will staying aware of your account activity prevent theft, it will help you track your finances by providing you a detailed account of how you spend, making it easy to figure out where to cut back if necessary. Of course, if you find yourself with too much debt to handle by budgeting, bankruptcy might be a solution. Find out if bankruptcy can help you pay down debt and protect assets like your house when you try a free one-on-one debt analysis with an Atlanta bankruptcy attorney.

Building an Emergency Savings Fund Can Help Atlanta Workers Survive Job Loss

2010-07-31T04:16:31Z

Being optimistic is one thing; being in denial is another. And unfortunately, it seems that millions of American workers are currently in denial about the job market.

It's not that folks are naïve enough to think they won't lose their job. On the contrary, 55 percent of Americans are worried that they could soon be out of work, according to MSNBC.com. And for one in 10 of us, that worry will come true.

The problem is that - even though we know getting laid off is a distinct possibility - we aren't doing anything to prepare for it. But by not preparing for it, we're making the worst case scenario, well, worse.

]]> Let's pretend you lose your job tomorrow and you have no money saved up. Immediately, you're going to start missing bill payments, putting your home at risk of foreclosure, your car for repossession, etc. Or, if you're like most folks, you'll just use your credit card every chance you get. That's all fine and dandy until your debt gets so high that you can't even afford the minimum payment. And even if you could afford the minimum, paying so little means your balance just grows and grows.

Not let's imagine that you get laid off, but you have three months worth of paychecks saved up. With extra money for bills, food and any other expenses that pop up, you can throw all your energy into the resumes, applications and interviews you need to snag a new job - instead of wasting your energy stressing over how to make ends meet. All of a sudden a once-scary scenario becomes survivable.

Sure, when times are tight it's annoying to have to set aside a little bit of your paycheck each month. But isn't a little pain today - in this case, by saving a portion of each paycheck - worth having a lot less pain tomorrow?

The same goes for lowering debt. If you can manage to pay more than your minimum balance today, you'll have much smaller payments tomorrow - meaning you'll spend less of your money in the long haul. Worried you've got too much debt to pay off by yourself? Bankruptcy can help by offering an affordable payment plan and legal protection. Our Atlanta bankruptcy attorneys can identify a bankruptcy plan that's right for your family's financial needs when you try our free, no-strings-attached personal debt analysis.