Atlanta Bankruptcy Attorney Blog

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.

Continue reading "Atlanta Consumers Faced With Higher Credit Card Interest Rates" »

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.

Continue reading "Bank Programs Offer More Flexible Loan Modifications Than Making Home Affordable" »

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.

Continue reading "Can Setting Credit Card Limits Stop Atlanta Consumers From Overspending?" »

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.

Continue reading "Rewards Cards Can Still Pay Off for Careful Consumers" »

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.

Continue reading "Small Savings Adds Up to Large Debt Relief for Struggling Atlanta Consumers" »

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" »

It was years in the making, but it looks the financial reform bill is finally on its way to becoming a reality. The question now is, how much will it actually reform - especially for those of us overwhelmed by debt?

You've probably heard about how the overhaul aims to reorganize the financial system to avoid another economic meltdown like the one that began almost two years ago. But that's not all, say Atlanta bankruptcy attorneys. If it passes, these changes will have an effect on consumers as well, from how we understand our credit card bill to how we pay for things at the store. What won't necessarily change, though, is whether or not we're able to overhaul our own finances.

Continue reading "What the Financial Overhaul Bill Can and Can't Do for Atlanta Consumers" »

Folks often feel alone when struggling to overcome a bad credit score. But the truth is, they're not.

More Americans than ever are considered high risk borrowers, according to information recently released by FICO, Inc. More than 25 percent of the country now has a credit score of less than 599 - an increase of 2.4 million since the start of the recession. A poor score translates into trouble qualifying for a mortgage, car loan or new credit card - and those who do qualify will likely face much higher rates, making getting out of debt all the more difficult.

Yet raising your credit score might be easier than you think.

Continue reading "As Atlanta Credit Scores Decrease, Bankruptcy Can Offer a Fresh Start" »

From an early age, we're taught not to trust strangers. Maybe that's why it's so easy for us to spot fraudulent e-mails coming from people or places we don't recognize.

The problem is, some scammers are outsmarting us by disguising their e-mails - and stealing our personal information in the process, according to Atlanta bankruptcy attorneys. Sure, we know not to click on that message from a millionaire in a foreign country or someone trying to sell us weight loss pills - especially when the e-mails are full of typos. But what about that legitimate-looking e-mail that appears to be from our own bank or credit card company?

Continue reading "Phishing Email Scams Try to Lure Atlanta Bank Customers into Giving Up Personal Information" »

You don't have to believe everything that you read on your credit card statement.

No, I'm not talking about accuracy (I'm assuming the information your creditor reports is correct -though if you never read your statement, how do you really know?). I'm actually referring to a new statement feature, courtesy of the Credit Card Accountability Responsibility and Disclosure Act (otherwise known as the Credit CARD Act). According to the law, your credit card company must provide you with a number that estimates just how long it will take you to pay off your debt if you only make the minimum payment each month. For many of us, that could be decades.

Now, if you really do intend to make minimum payments for the rest of your life, then I guess you can accept your estimate. But if you don't want it to become reality, don't believe it. Instead, believe that you have the power to change that number - and your debt problems.

Continue reading "Paying the Minimum Payment Leads to Maximum Debt for Atlanta Credit Users" »

If credit card fees have been eating into your paycheck, you're about to get another break.

On Tuesday, the Fed adopted yet another set of credit card limitations. This round of laws limits credit card late fees to $25 and keeps creditors from charging a penalty larger than the charge that caused the violation - for instance, instead of slapping you with a $30 fee for going over your credit limit by just $5, you won't have to pay more than five bucks. Nor will banks be able to charge more than one fee per violation. And - my favorite - no more inactivity fees (seriously, how is it fair to penalize someone for choosing not to spend money?).

But despite all the positive changes, the new rules still won't get to the root of most folks' credit card problems when they go into effect in August.

Continue reading "Atlanta Credit Users Can Lower Credit Card Fees with New Fed Laws" »

Credit cards bear the brunt of the blame for our overspending - sometimes deservedly, sometimes not.

Sure, paying with plastic can make it all too easy to make impulse buys - leading to credit card debt and an empty checking account. But for some folks, paying with paper makes it too easy to lose track of where all that money's going because, unlike with credit, there's no statement to hold you accountable at the end of the month. So how do you know what's right for you - cash or credit card? Take a look at your spending habits, say Atlanta bankruptcy attorneys.

Continue reading "Spending with Cash or Credit Has Benefits and Drawbacks for Atlanta Shoppers " »

Despite news that the economy is recovering, Atlanta residents and the rest of the country are still stressed out.

What's the reason? More than 46 percent of people surveyed by the Associated Press said that debt was a major source of stress in their lives. Even though we're scrimping and saving, it doesn't seem to be enough to erase the massive debt burdens many of us racked up in the years before - and during - the recent recession, say Atlanta bankruptcy attorneys.

But there's a bright side. We don't have to wait for economic recovery to ease debt worries - not when we have the option of bankruptcy.

Continue reading "Bankruptcy Can Help Americans Lower Debt Stress While Economy Recovers" »

Have you ever stopped by the grocery store for a box of cereal only to exit with four bags worth of food - and a hefty receipt? If so, take heart - you're not alone.

Even the most budget-minded shoppers are guilty of falling victim to impulse buys - and it's not all our fault, say Atlanta bankruptcy attorneys. Stores have a few tricks up their sleeves to get us to spend more than we should. And being aware of those tricks could lead to lower bills and less debt.

Continue reading "How to Avoid the Spending Traps Retail Stores Set for Atlanta Shoppers" »

Did you know your credit score can go up and down each month, even if you're usually a responsible credit user?

Your credit score isn't some static number - it's actually a monthly assessment based on the information your lender provides to credit bureaus, say Atlanta bankruptcy attorneys. It's a snapshot of your credit behavior at one point in time. So if you ring up an unusually high credit card balance one month, all of a sudden you look like a riskier borrower - even if your past history says otherwise.

That's good and bad news. Good, because it means you have more power to change your credit score than you may realize. Bad, because your behavior one month can jeopardize your finances the next.

Continue reading "Why Getting Too Close to Your Credit Limit Can Hurt Your Score" »