Atlanta Bankruptcy Attorney Blog

As a culture, we seem inherently drawn to new, shiny things. Which begs the question: when the economy finally rebounds, will our spending do the same?

One way to tell is by the kind of cars we buy in the future. Before the economic meltdown, most folks bought their cars brand new. It was simply the thing to do. Sure, buying new was more expensive, but we figured that's what car loans and leases were for. Unfortunately, it didn't turn out too well for many of us.

Those new cars lost approximately 20% of their value the minute we drove them off the lot, according to Bankrate.com. After a year, another 10% in value went down the drain. Couple that with high loan payments, and you get a car that we couldn't afford to keep, and couldn't afford to sell.

Continue reading "Consider Buying a Used Car to Avoid Debt and Depreciation" »

With money tighter than ever this season, folks are looking for ways to cut back without cutting out Christmas gifts.

On the positive side, sticking to a budget is encouraging us to be less materialistic and more creative, giving homemade and small but thoughtful gifts (not to mention it's a lot easier on our wallet that the standard Christmas shopping spree). But some seemingly "free" presents can actually cost us more money than a store-bought gift - and, in the worst-case scenario, can leave us deep in debt.

Co-signing loans can seem especially appealing during tough economic times. Our friends and family need help buying cars and homes, and we're looking for affordable ways to show them we care. Let's say your cousin is in the market for a new car, but she's having trouble getting the loan. You figure you'll offer to put your name on her car loan in lieu of a physical Christmas gift. It's a win-win, right?

Not necessarily and here's why.

Continue reading "Atlanta Bankruptcy Attorneys Warn That Becoming a Loan Cosigner Isn't Worth the Cost" »

It's official - the Cash for Clunkers program is a hit. But while that might be good news for the ailing auto industry, it's not necessarily good news for consumers.

In case you're not familiar with the program, here's how it works. When you turn in a low-mileage vehicle for one that meets higher-mileage guidelines set by the government, you get up to $4,500 off your purchase. Sounds like a lot of money, right? But not when consider that Cash for Clunkers presents the same problem as the blowout sale at your local discount store.

Let's say you buy a pair of shoes normally priced at $50 for 50% off. You might think you're saving $25 - but that's only true if you planned to buy that pair of shoes no matter what. If you only purchased them because of the sale, you're actually out $25. It's the same thing with cars. If you were dead-set on buying a new hybrid anyway, then yes, you're getting a great deal. But if you're using the incentive as an excuse to get a shiny new toy that you really can't afford, then you're not getting a bargain - in a way, you're getting ripped off.

Continue reading "Cash for Clunkers Might Not Be Such a Good Deal" »