Atlanta Bankruptcy Attorney Blog

Even though a weak job market is threatening to stall economic recovery, Americans increased their spending in January, Atlanta bankruptcy attorneys say.

With unemployment still hovering just under 10 percent, incomes remained almost flat in January - rising by around 0.1 percent, significantly lower than what economists expected. And for those lucky enough to retain our jobs, cost-of-living raises are still far and few between - not to mention the fact that some of us have seen reduced hours, furlough days or other paycheck-lowering actions. Yet we spent, on average, 0.5 percent more last month, according to The Commerce Department.

The good news is that we're feeling optimistic. The bad news is that we're threatening to derail our progress. See, the Great Recession has been good for at least one thing. It's increased our savings rate from a negative number for most of the last decade to more than 4.3 percent last year. Now we're starting to see that rate drop again - last month, for instance, we only saved 3.3 percent.

If we want our newfound responsible behavior to stick around, we're going to have to start slowing our spending to match our income. Fortunately, there's a formula to make saving a little more manageable.

Continue reading "Atlanta Bankruptcy Attorneys Are Saving Less But Spending More" »

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" »

It's the ultimate Catch-22. You know you want to start saving money this year but you're already struggling to pay the bills as it is. Saving feels impossible.

Fortunately, it's not. The truth is, saving money really isn't that difficult once you get going - it's getting started that's the hard part. But I'll let you in on a little tip: it really doesn't matter how much you save at first. The point is to get into a habit, whether you begin by setting aside $100 or $1.

Many times, we tell ourselves that we'll start socking away money once we start making more of it. In reality, when the boss finally rewards you with that raise, you'll probably start finding other uses for the extra cash. But if you vow to save just a little bit of each paycheck today, you'll have more money tomorrow - whether or not you get a boost in income.

Continue reading "Find the Secret to a Savings Plan That Works" »

Sometimes it seems that the more ambitious the New Year's resolution, the more likely it is to fall by the wayside as the year progresses.

But, believe it or not, resolving to lower spending can be an exception to the rule. It all depends on how you tackle it.

Sure, the ideal budget works by meticulously tracking every check you write, credit purchase you make or dollar you spend. Just like a diet makeover, one of the best ways to truly change is to hold yourself accountable for every cent (or bite). But the problem is, it can also set you up for failure when the going gets too tough - and you give up.

Instead, why not start with an easier shortcut?

Continue reading "Make 2010 the Year of Financial Freedom with a Spending Plan" »

Looking for a good scare this Halloween weekend? Just drive to the nearest gas station.

Summer might be long behind us, but it seems to have left us with a souvenir - high gas prices. In the past couple weeks, the price at the pump has climbed more than 20 cents a gallon. It's a jump typically seen during the warmer months when people are on the road for vacations and oil is in high demand, not after the kids are back in school and traveling has calmed down.

With money already tight, retailers are worried the unexpected inconvenience will cause consumers to be more careful with their money this holiday season. And they might be right. A few more bucks might not seem like a big deal, but with most folks barely scraping by on the mortgage, credit card bills and groceries (not to mention taxes, medical bills, car repairs or any other unexpected costs) any small change could be the last straw. Fortunately, there's a way to ensure that pricier gas - or utilities, milk and bread, you name it - doesn't get the best of you.

Continue reading "Fight Back Against Scary Gas Prices with Bankruptcy " »

Forget the jack-o-lanterns. Visit almost any retail store right now, and you'll notice that it's beginning to look a lot like Christmas.

With just a bit more than two months until Dec. 25, stores are already decking their shelves in red and green. In my opinion, it's an annoyance. And not just because I'd like to celebrate Halloween before I start hearing Jingle Bells.

Christmastime makes me think of friends and family - no problem there. But then I think of the gifts I'll need to buy friends and family. Which reminds me that gifts cost money - which, in turn, reminds me that I don't have very much money to spare. And I'm not alone. Millions of Americans nationwide are wondering how they'll manage their annual holiday shopping spree on this year's tight budget.

But there might be a way to save money this season. See, the way you pay can dictate how much you pay.

Continue reading "Layaway, Cash Can Save Money on Holiday Shopping" »

While I'll mourn the sunny weather and homegrown tomatoes, there's one thing I won't miss about summer - high gas prices.

You know it's officially fall when the pinch at the pump hurts a little less. Yesterday it was announced that an average gallon of gas had fallen below $2.50, the first time it's been that low in two months, according to the Associated Press. That's down from approximately $2.70 in July - and actually about a dollar less than last year.

Of course, I realize that saving a few bucks every time we fill up isn't going solve all our money problems. But it's a start. Imagine that you could save $20 a month on gas. Better yet, try carpooling or taking public transportation some days and save even more. Now combine that with a few other budget tweaks. Maybe you could cut out your gym membership, use the library instead of a DVD rental service, trade your land line for your cell phone, stop making impulse buys at the grocery store or vending machine or pack your own lunch instead of eating out. While you're at it, this is the perfect time to kick bad habits like smoking.

These are just a few ideas. Once you get in the habit of looking for little ways to save, I bet you'll be surprised at how many more opportunities you'll notice.

Continue reading "Little Things Add Up Big Time When It Comes to Paying Down Debt" »

Earlier this year, a poll found that 32 percent of Americans believe spending less has become their normal, permanent behavior.

Cheap chains like McDonald's, Wal-Mart and dollar stores have been thriving. There's even been talk that our generation will be penny-pinchers just like our grandparents and great-grandparents who lived through the Great Depression. If there's a silver lining to the recession, it's that saving money is cool again.

So with this newfound respect for frugality, you'd think most of us would be out of financial trouble by now. But it's not that easy. Yes, buying less - and buying cheaper - certainly helps your wallet. But if you're dealing with a lot of debt, simply spending money isn't going to be enough. You're going to have to spend smarter.

Continue reading "Saving Isn't Just About Spending Less, It's About Spending Smarter" »

Mortgage rates are falling again. Home values are ever so slowly edging higher. A growing number of buyers are trying (some successfully, some not) to get into the market.

The market is changing and homeowners stand to take advantage - but only if they act fast.

On average, the rate for a 30-year home loan is just over 5 percent (the record set this spring is 4.78 percent). So how did rates get so low? Earlier this year, the Federal Reserve began purchasing more than $1 trillion in mortgage-backed securities, driving interest rates down in the process. But here's the catch: the money is expected to run out by the end of the year. Rates will not remain this low forever.

Mortgage rates may rise and fall - debt, on the other hand, will only continue to rise unless you do something about it. It won't matter if you get a break on your home loan, if you get a raise at work, if you receive an inheritance - your debts will eat up your windfall eventually. If you want to take full advantage of today's rates, it's time to free yourself from the shackles of your debt.

Continue reading "Bankruptcy Is a Better Way to Take Advantage of Falling Mortgage Rates" »

After 13 years in the public school system and four years of college, I've put in my time when it comes to education. But somehow, seeing the kids head back to school with their new backpacks and notebooks makes me a little wistful.

It's not that I want to return to the classroom (though my grandparents are always hoping I'll go back for my master's). And it's not that I'm looking for an excuse to do some back-to-school shopping - I think I've been doing a decent job of avoiding the mall, thank you very much.

No, what intrigues me most is the potential for change. It's the idea of wiping the chalkboard clean, if you will, for a fresh start. Remember how going back to school every fall meant a chance to reinvent yourself? Well, why can't the change of the seasons mean the same thing now, particularly when it comes to finances?

Continue reading "Educate Yourself Out of Debt with Atlanta Financial Workshops" »