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" »

You can't teach an old dog new tricks - especially when that dog is a credit card company, say Atlanta bankruptcy attorneys.

The last of President Obama's credit card reform laws went into effect Monday - and most of the news is good. In summary:

• Creditors aren't allowed to raise rates on existing balances - so if you're paying 20% on a $5,000 debt, they can't suddenly decided to charge 30%, unless you're late on a payment.
• They must provide a 45-day notice period before altering your account, for instance by changing a fee
• No more fees for maxing out your credit card, unless you fail to opt out of that service
• Customers must receive their bills 21 days before the due date
• On cards with several lines of credit at various rates - for example, maybe one line is for purchases while another is for cash advances - credit card companies have to apply any payment beyond the minimum to the balance with the highest rate

Now here's the bad news - and some advice on making it not-so-bad.

Continue reading "Atlanta Bankruptcy Attorneys Discuss Effects of New Credit Reform Legislation " »

In the market for a new refrigerator? Uncle Sam might be willing to help foot the bill, say Atlanta bankruptcy attorneys.

With Cash for Clunkers no longer, the government hopes to stimulate the economy with a new program that targets household appliances. Starting this year, up to $300 million will be available for folks who purchase new refrigerators, washers, heating and air units and more. The goal is twofold: first, to get consumers out there spending and, second, to replace old, energy-guzzling appliances with modern energy-efficient ones. For example, a brand new washer typically uses 50 percent less water, and spins clothes so efficiently that it also reduces dryer time.

As with any seemingly good deal, though, there are still pros and cons. If your washing machine is about to bite the dust and you can afford a new one, this might be a golden opportunity to save some green. However, if you're already struggling to pay off your credit card bills, you may not be able to afford another major purchase - whether or not you get a sweet discount.

Continue reading "Atlanta Bankruptcy Attorneys Weigh Benefits and Drawbacks to Energy-Efficient Appliance Rebate Program" »

Banks are trying to sell consumers on a deal that really is too good to be true, according to Atlanta bankruptcy attorneys.

This summer, a new law will go into effect requiring customers to "opt in" to overdraft protection plans offered by banks (previously many banks enrolled customers automatically - often without telling them). Problem is, banks count on overdraft protection to rake in more than $20 billion in fees annually. To try to recoup some money, banks are sending out millions of letters trying to convince - and in some cases, threaten - customers to sign up.

What is overdraft protection? It's a feature that authorizes banks to "loan" you money when you overdraw on your account with a debit card - for a fee, of course. Here's why it might be a feature you can't afford, especially if you're already dealing with debt.

Continue reading "Atlanta Bankruptcy Attorneys Cautious of Overdraft Protection Pressure By Banks" »

Forget about your sweetie - why not show your wallet some love this Valentine's Day?

OK, maybe your significant other still deserves a little something. But my point is, you shouldn't have to break the bank just because Hallmark wants you to. And whether you're a diehard romantic or a Valentine's Day skeptic, you can use tomorrow as an excuse to start working towards a financial life that you'll love all year round - particularly if you're in debt right now, say Atlanta bankruptcy attorneys.

Continue reading "Atlanta Bankruptcy Attorneys Offer Advice on Saving Money This Valentine's Day" »

Have you ever treated yourself to a shopping spree on a bad day? Or celebrated something positive - like a raise - by blowing a bit more money than you can afford?

It's called emotional spending, according to Atlanta bankruptcy attorneys, and it means you're spending with your heart and not your head. It's the financial equivalent of emotional eating: it tastes sweet in the moment, but the baggage it will leave you with isn't worth it - especially if you're adding to an already large debt.

Fortunately, even the biggest emotional spenders can learn to reign in their habits. What's the secret? Identifying the things that trigger your shopping urges - and then coming up with solutions.

Continue reading "Atlanta Bankruptcy Attorneys Offer Advice For Avoiding Emotional Spending" »

Someone once said that the only certain things in life are death and taxes. Apparently, they forgot that we also have to eat.

After the mortgage, food is probably the biggest part of the budget for most folks, with the average family spending roughly $600 a month in groceries not to mention hundreds on eating out. It's also the most unavoidable part of most budgets, according to Atlanta bankruptcy attorneys. Like it or not, we have to eat - even when the cost of staples like bread, milk and meat are skyrocketing while our salaries remain stagnant.

But just because we have to buy groceries doesn't mean we can't find ways to cut costs. Changing just a few of your shopping habits can keep your pantry - and your wallet - from hitting empty.

Continue reading "Atlanta Bankruptcy Attorneys Offer Advice on Saving Money at the Grocery Store" »

Have you ever visited Amazon or eBay and been surprised to see your favorite clothing, electronics or books displayed on the homepage? No, it's not your lucky day - that homepage was created specifically for you. You see, retailers are tracking your every move, according to Atlanta bankruptcy attorneys.

Living in the Internet age, privacy is becoming more of a luxury than a privilege. But while you can't exactly avoid the Internet, there are other ways to protect yourself. For instance, is your mailbox stuffed full of catalogs or your inbox filled with store promotions? Do you ever wonder how stores get your address? Often times, it's as easy as having you fill out an online survey, send in a rebate or simply use your credit card.

Maybe you've got the money - or willpower - to afford having stores calling you about sales or sending ads to your house, but some of the millions of Americans struggling to pay off debt don't.

Continue reading "Atlanta Bankruptcy Attorneys Say Avoid Store Marketing Ads to Save Cash " »

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" »

Just because that scarf Grandma gave you isn't your style doesn't mean you can't get what you really want - or need - this Christmas.

With most folks struggling to make ends meet, there's nothing wrong with admitting you want to squeeze the most use out of your presents - especially when you've dropped big bucks on gifts for friends and family over the past several weeks. Fortunately, stores are giving us a break this year.

Retailers like Best Buy, Wal-mart, Sears and even Overstock.com are making it easier than ever to return or exchange gifts by extending deadlines and loosening formerly strict policies, according to an article on MSNBC.com.

Continue reading "Gift Returns and Exchanges Could Become Easier This Year" »

With the dawning of the gift card age, gift givers thought we had finally moved past the days of fruitcakes and ugly sweaters. Because you can't go wrong with plastic, right?

Maybe you can. It turns out that much of our good intentions are still going unused. But instead of going in the trash or to the thrift store, our gifts are going to making businesses richer. Retailers call it breakage, the portion of gift cards and certificates that never get spent. And breakage is no chump change. Most retailers like to keep it on the hush-hush, but here's an idea of how much we're "donating" to stores each season. Home Depot made $37 million off gift cards last year, while Best Buy brought in $38 million, according to the NY Times.

For shoppers on an already tight budget, it's an insult.

Continue reading "Gift Cards Might Be Convenient, But They Aren't Always Cheap" »

Creditors have been playing a dirty trick on their customers. And the worst part is, they're making it look like they're actually doing us a favor.

Just grab your latest credit card bill to see what I'm talking about. What's the most prominent feature on your bill? I bet it's not your balance, but your minimum payment. This "amount due" is usually between 2 and 4 percent of the full amount you owe. At first glance, this looks like a good thing. Let's say you're dreaming of buying yourself a $500 laptop for Christmas. Five hundred bucks seems like a lot to spare in this economy; but, at a 2 percent minimum payment, you'd only be shelling out $10 a month if you used your credit card - seemingly making the purchase more affordable.

That's the illusion. What's the reality? You might be paying less with each payment but you'll pay more in the long run. Creditors created minimum payments not to save you money, but to keep you in debt - and shelling out your hard-earned dollars - infinitely.

Continue reading "Ignore the Minimum Payment To Pay Down Debt" »

When most folks worry about maxing out their credit cards this season, they're thinking of gift shopping. But there are a lot of forgotten small expenses that can leave you deeper in debt come January.

For example, let's look at the annual holiday get-together. Maybe you always throw your own Christmas party. Or maybe between work and friends, you're invited to a half dozen holiday fetes this month. The result can be the same - between groceries for cooking, festive decorations, hostess gifts, and (if you really go crazy) new outfits, you could bust your budget before you make it through your gift list.

It's hard to maintain financial control this time of year, what with the festive feeling in the air, tempting sale displays on store shelves and holiday advertisements bombarding you from the TV screen, magazine pages, billboards and radio. But use the following advice to help you stick to that budget like you do the rest of the year and you'll be in better shape when the tree and lights come down and we all return to our regular lives.

Continue reading "Learn How to Lower the Cost of the Holiday Season" »

Grandma had it right all along - coupons are cool. But instead of clipping them from newspapers, magazines or the backs of cereals boxes, today's consumers are going online.

With most holiday shoppers looking for the best way to stretch their dollar this year, Cyber Monday - the new, online version of Black Friday - has exploded in popularity, mostly because of all the coupons available on the Internet. Since last holiday season, coupon websites like RetailMeNot, CouponCabin and BradsDeals.com saw traffic grow by 57%, 65% and a whopping 174% respectively, according to USA Today (some other discount sites include Savings.com and CoolSavings.com). Additionally, more than 20% more consumers printed online coupons this year than last year.

But while sales are appealing, they're only good deals under the right set of circumstances.

Continue reading "Consumers Looking Online for Discount Coupons" »

Today, we give thanks for food, family and friends. Tomorrow, many of us are giving thanks for the Internet.

In the past few years, online shopping has revolutionized Black Friday and the rest of the holiday shopping season. Instead of braving long lines and crowded shopping malls on a quest for the best deals early Friday morning, we can find some of the same sales - and some better - from the comfort from our own homes. And it couldn't have happened at a better time.

With most folks already struggling to pay the bills, we don't have much to spare when it comes to shopping for Christmas gifts. Unlike traditional shopping, the Internet allows instant price comparisons, access to way more stores - and potential deals - than we'd ever be able to visit on foot or by car, and less temptation for spur-of-the-moment spending, since there are no distracting window displays or sales people (though those pop-ups can be annoying).

But as with any good thing, there's always a catch - in this case, online scams.

Continue reading "More Online Shopping Means More Online Scams This Season" »