Atlanta Bankruptcy Attorney Blog

Even before Halloween, there were Thanksgiving decorations and now there are Christmas and December holiday sales being pitched, some seven weeks out.

It's shopping season.

Sadly, however, all this spending will thrust many Americans into debt in Atlanta because of the predatory actions of credit card companies.

Atlanta bankruptcy lawyers know that high spending, holiday shopping and credit cards are a bad combination. Consumers believe they can simply pay the debt off at a later date.

But what happens if they lose their job at the beginning of January? This economy isn't exactly stable. People are losing their houses, their jobs and their income. There's always the possibility of a major medical issue or high hospital bills.

These are all variables that consumers must consider when they plan out their shopping this winter. And stores are already gearing up in anticipation of the holiday season.

CNNMoney is reporting that Wal-Mart is planning on leaking its own Black Friday deals to shoppers who sign up on their Facebook page or on the web site. The giant retailer typically provides its Black Friday deals to shoppers the week of Thanksgiving, but is starting even earlier this year.

Not to be outdone, electronics retailer Best Buy has announced it will open at midnight on Thanksgiving to ensure it capitalizes on the shopping madness. Some stores will show movies starting at 9 p.m. Thanksgiving to make sure they get as much business as possible.

CNNMoney reports that the store will give free shipping on purchases directly from its website and will give online shoppers a chance to win gift cards throughout the day through its social media pages.

And while October retail numbers were disappointing in the industry, the National Retail Federation is estimating that sales for 2011 will reach $465.6 billion, a 2.8 percent increase from 2010, ABC News reports. That signals a big holiday spending spree by Americans.

All this spending may be great for the economy, but it can be treacherous for consumers. By spending more than they can afford, consumers put themselves in a tough position.

For one, it adds to their credit card debt. But more importantly, it puts credit card companies in the driver's seat. When they know you have thousands or tens of thousands of dollars on your credit cards, they control you. They can kick in hidden fees, hike interest rates and make life difficult.

When a consumer stops paying on their card, the credit card companies can threaten wage garnishments, constantly call and ask for payments, send letters, e-mails and even contact employers or associates. Being buried in debt over holiday spending is not worth it.

Bankruptcy can clear these problems away, however. By filing for bankruptcy, the creditor harassment ends. They aren't allowed to contact you and their threats must cease.

For a consumer who has been trapped by these predatory practices, bankruptcy in Atlanta will allow them to discharge their debts and move on with life without the burden of owing that much money. Consumers can then put together a plan to ensure this doesn't happen again in the future.

Continue reading "Holiday Spending Will Spur Credit Card Debt, Bankruptcy in Chicago" »

Typically it's credit card companies that get the bad reputation for hidden fees and making consumers' lives more difficult. And it's for good reason -- they charge ridiculously high interest rates and have hidden fees for things as crazy as customer service. But, in many cases, the banks are not far behind.

Banks may be moving up the rankings to take a solid second place. A recent story by bankrate.com shows that free checking is likely the thing banks will be cutting from their members.

Well, what a shock -- another thing that consumers will be saddled paying for as banks continue to seek profits on the backs of consumers. It's hidden fees like these that squeeze people. Consumer debt -- including real estate debt -- is leaving record numbers to consider bankruptcy in Atlanta.

Atlanta bankruptcy lawyers have seen many consumers overwhelmed by fees and frustrated to the core. For those whose credit score is tanking because they are getting behind on payments and can't keep up, bankruptcy may be a sound option.

This country's bankruptcy laws are designed to protect the consumer. Lawmakers many years ago recognized that consumers may need a way to get out of debt and this set of laws allows them to do just that.

After completing the process, the consumer leaves behind their debt and can start back over, free from the problems that plagued them for years. They then are free to control their finances instead of the financial companies controlling them.

According to the bankrate.com article, the face of checking accounts is changing. A survey of major banks and lending institutions found that the number of free checking accounts continues to drop. Only 45 percent of non-interest checking accounts have no maintenance charges, a 20 percent drop from just last year.

So, now there are more fees for checking accounts, but the fees are higher, too. The average fee jumped from $2.49 to $4.37 in a year, which is $52.44 per year. While that shouldn't break the bank, it's just another fee to punish consumers.

Banks are also considering debit card fees -- which some major banks have already experimented with -- and there are more hurdles to jump in order to avoid fees, such as minimum balance or making sure you sign up for direct deposit.

ATM fees, lower interest rates offered for checking and higher overdraft fees are all making banking less attractive for consumers. Of course, it's making banks plenty of money. But consumers should be sure to check their statements carefully to make sure they're not giving away money to banks.

These fees can pile up and just add another collector to the pile of others for those in heavy debt. While a bank seems like it should be an ally, they can act just like a credit card company looking for money -- with aggression and a no-holds-barred approach.

But bankruptcy clears away debt so that you can better manage your money in the future. This includes being picky about your bank or credit union as to avoid unnecessary fees that make your life more difficult.

Continue reading "Bank Fees & Consumer Debt in Atlanta Bankruptcy Cases" »

According to a new study released by MasterCard, 55 percent of consumers are not familiar with their credit cards' benefits and some even paid extra for the perks they already had, lowcards.com reports.

Credit cards often get a bad rap for interest rates and hidden fees, and for good reason. These companies use the lure of benefits such as airline miles and cash back promises to rope people into signing up for cards that typically land them in hot water. These companies love to put out seemingly positive stories to try to get people interested in their product.

But, the bottom line is that Atlanta Bankruptcy Lawyers have seen many consumers trapped into unmanageable debt because of predatory fees and surcharges that result in filing for bankruptcy in Atlanta.

The pro-credit card article cites many of the benefits that card owners can get:

Car Rental Loss/Damage Insurance
Extended Warranties
Purchase Protection
Security From Unauthorized Purchases
Travel Accident Insurance
Trip Cancellation Insurance
Lost Luggage Insurance
Travel Emergency Assistance
Emergency Assistance
Roadside Assistance

While some of these offers could be useful, often they go ignored, the article states. But what can't be ignored are the outrageous interest rates that many of these credit cards bring to people who are simply trying to help their credit score or get by with a little financial help.

Credit card debt is one of the top reasons people file for bankruptcy in the first place and there's no denying that sticking someone with a 20+ percent interest rate contributes to their financial decline. Even paying the minimum a few times can ruin a family's finances.

According to Forbes.com, credit card companies have sent billions of credit card offers out as people try to pick up the pieces and try to recover from one of the worst financial crises our country has ever seen. Forbes reports that in 2010 there were 2.82 billion credit card offers mailed to residents, which soared from 1.39 billion in 2009.

And it's these perks that companies are using to try to entice new customers into signing up for credit cards. Experts believe companies are also trying to lock in customers with good to excellent credit scores.

"The competition among credit card issuers has definitely stepped up," said CreditCardFlyers.com senior analyst Doug Levy. "They are sending out more solicitations."

The issue is rampant -- according to U.S. Census data, there were 173 million credit card holders in the United States in 2006 and that was expected to grow to 181 million by 2010, according to www.money-zine.com. And along with all those card holders comes the debt. In 2006, Americans carried about $886 billion in credit card debt, which was expected to increase to $1,177 billion by the end of 2010.

If you have been a victim of predatory credit card practices and are considering bankruptcy to start over, contact our firm. Our lawyers are ready to advise you on any financial issue that may be plaguing you. Call today for a free consultation.

Continue reading "Study Finds Most Atlanta Credit Card Users Don't Know the Perks, but They Probably Know the Pitfalls " »

As many American families struggle to stay afloat in this tough economic environment, a new study found that credit card debt remains a leading cause of bankruptcy in Atlanta and elsewhere in the United States.

Equifax found credit cards cost households nearly 20 percent of their income, according to MSNBC. These statistics don't even take into account debt from various store-specific credit cards.

Our Atlanta bankruptcy attorneys highly recommend you seek the legal help of an experienced lawyer if you're experiencing financial troubles because of credit card debt. Credit card debt can burden many aspects of your life. Creditors can continually call and harass you in efforts to collect payments. Late fees and penalties can make it impossible to catch up. The stress can literally take years off your life. Consulting an experienced attorney can help you make a fresh financial start.

A separate study, conducted by Experian, found that the average consumer has racked up more than $4,000 in credit card debt. On a slightly positive note, that average illustrates a 4 percent decrease from last year. Whether the recession has led to increased savings or whether the reduction is attributable to credit card companies slashing credit lines is debatable.

MSNBC recently reported Atlanta is among the top five U.S. cities with the most individual credit card debt. The top five cities with the most debt are, listed in order, San Antonio, Jacksonville, FL, Atlanta, Honolulu and Dallas.

The average amount of debt in our city is $4,960 per individual. Such debt levels consume a substantial portion of the average consumer's income. Credit experts say that a combination of economic desperation and needless spending caused the city's increasing credit card balances. Atlanta was one of the top areas to suffer from the unemployment surge and the devastating housing market collapse.

Equifax's report does offer citizens a little bit of hope as it reports that total consumer debt declined slightly from the terrifying peak back in October of 2008. A grand total of 54 million households owe creditors a sum of more than $800 billion in debt from unpaid credit card bills.

Consumers are well advised to slash their dependence on the plastic cards and contact an experienced attorney in the event your credit card debt has grown out of control. An experienced attorney can help you navigate the best path to financial freedom.

CreditCards.com offers you these tips to help you with your credit card debt in the meantime:

-Avoid debt collection. Try to negotiate with the original creditor and work out a payment with them before letting them sell the account to a collection agency or another third party.

-Don't make it too easy. Consumers should avoid giving collectors their bank account number or routing numbers. Payments should be made with money orders or some other third-party payment service. Be sure to keep proof of payment but avoid paying with a personal check. Electronic withdrawals from bank accounts are a big no-no as well.

-Familiarize yourself with your rights. Read and understand the Fair Debt Collection Practices Act. This act details handling problems involving harassing and nuisance phone calls, threats and abusive language. These acts are illegal and should be reported to the Federal Trade Commission (FTC) and your state attorney general's office.

-Protect your bank accounts. As collectors can file suit against consumers for not paying debts, they can also freeze savings or checking accounts. Keep separate accounts for Social Security or disability payments received as these are exempt from use for court-ordered payments. "I would urge people not to co-mingle other funds into the bank account to which the Social Security and disability payments are going. That would help a lot of people," says Rozanne Andersen, executive vice president of ACA International, the largest credit and debt collection industry trade group.

Continue reading "Atlanta Bankruptcy: City ranks in Top 5 Nationwide for Credit Card Debt" »

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" »

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" »

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" »

American consumers say the economy has changed their spending habits for the better - but is the change permanent?

While 63% of people in last year's Citigroup survey reported that the recession has had a positive effect on their spending and saving behavior, only 52 respondents say the same today. Perhaps now that incomes are rising once again, we feel a little more secure. And maybe some of us are so used to the new economy that we've become numb to possibilities that once struck fear into our hearts - like pay cuts and layoffs. That's understandable. What's not so understandable? The fact that consumer debt is increasing, say Atlanta bankruptcy attorneys.

Continue reading "Are Improved Financial Habits Falling By The Wayside As Economy Picks Up Steam?" »

You can't always get what you want. But if you try sometimes, well - you know how the song goes - you just may find you get what you need.

The Rolling Stones must have known what many folks are just learning today thanks to the recent recession - a little effort goes a long way, at least when it comes to lowering rates. According to Yahoo Finance, service companies are increasingly allowing customers to name their own price. The only catch? You have to give them a call, say Atlanta bankruptcy attorneys.

Continue reading "Atlanta Customers Call Service Companies To Snag Lower Rates" »

Uncle Sam was hoping a recent tax cut would get pumped back into the economy - but it looks like it might just get pumped into our gas tanks.

In December, President Obama signed a payroll tax cut that would slash Social Security withholdings from 6.2 percent to 4.2 percent in 2011- essentially a 2 percent annual raise. But just as the cut started taking effect this month, gas prices began climbing upward. Prices today are 37 cents a gallon more than they were at this time last year. And economists estimate that more than half of all drivers will have to adjust our finances accordingly, say Atlanta bankruptcy attorneys.

Continue reading "Atlanta Consumers Look For Ways To Pay Increasing Gas Prices" »

It looks like the new year is already bringing new costs - and there's no getting around at least one of them.

If gas gets too expensive, we can take the bus. When our bank adds new fees to our checking account, we can switch banks. But when the price of food goes up - as it has recently - we can't exactly stop eating. Fortunately for those of us already drowning in debt, there are choices we can make to lessen the blow, say Atlanta bankruptcy attorneys.

Continue reading "Atlanta Consumers Feel the Pinch at the Grocery Store As Food Prices Increase" »

I don't know about you, but I'm always a little sad once all the Christmas presents have been opened and family and friends have gone home. Fortunately I've discovered a way to keep the holiday spirit around after the holidays: gift cards.

I realize that gift cards are old news by now. In fact, cards are by far the most requested and received Christmas gift, according to the National Retail Federation - probably because people like the freedom to choose their own presents. But the amount of utility we get from gift cards varies wildly depending on how we use them. If you want to get the most bang for your buck, a little planning goes a long way, advise Atlanta bankruptcy attorneys.

Continue reading "How Atlanta Residents Can Stretch Gift Card Dollars This Christmas" »

If you're barely able to afford paying the mortgage and putting gas in your car, surely you're not going to splurge on stuff you don't even need, right?

Or will you? Americans might be cutting back in most areas, but they're spending more than ever on infomercial products - things like ab machines, spray tan bottles and the infamous Snuggies. So why are we spending our dwindling dollars on "As Seen on TV" merchandise that may not even work? It's all in the sales pitch, say Atlanta bankruptcy attorneys.

Continue reading "More Atlanta Shoppers Buying Into Infomercials In Spite of Debt" »

In the classic holiday battle for our hard-earned dollars, consumers seem to have the upper hand over retailers this year.

That's because, for the first time in decades, Christmas shoppers are choosing to spend with cash rather than credit, say Atlanta bankruptcy attorneys. TransUnion reported an 11 percent drop in major credit card use compared to this time last year. And the rate of shoppers using credit during the Black Friday weekend was the lowest in the 27 years since an annual survey began tracking our holiday spending habits. It seems that consumers are finally catching on stores' holiday tricks.

Continue reading "Atlanta Shoppers Choose Cash Instead of Credit Cards in Stores This Season" »