Atlanta Bankruptcy Attorney Blog

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" »

Think Uncle Sam will take care of you if you lose your job? You're right - for awhile.

The first $2,400 you receive in unemployment benefits are free for you to keep, according to Atlanta bankruptcy attorneys. Make that $4,800 if you file taxes jointly as a married couple. But after that, you're responsible for paying taxes on benefits just as you would on a regular paycheck. Wondering how much you might owe? You should be receiving a Form 1099-G, which you'll report on your tax return.

Paying taxes even when you've been out of work sounds like a crap deal. But fortunately there are some ways to lessen the blow.

Continue reading "Atlanta Bankruptcy Attorneys Suggest Emergency Savings Funds For Unexpected Taxes" »

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" »

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" »

What if you had two choices: Pay the mortgage each month, or pay your credit card bill?

In the past, choosing was a no-brainer - put the money towards the roof over your head. But increasingly, Americans are starting to prioritize credit cards, meaning the mortgage gets left by the wayside, according to Atlanta bankruptcy attorneys.

So what's changed? To start, the housing market. With one in every four homeowners underwater on their mortgage - and thus having no equity in their home - paying off a home loan can feel like throwing money away. On the other hand, paying the credit card bill allows us to keep using plastic to cover food, gas and clothes even when we aren't bringing home enough bacon to afford them.

But even though our new priorities make sense under the circumstances, it doesn't mean they're the best - or only - choice.

Continue reading "Atlanta Bankruptcy Attorneys See More Homeowners Default on House Than On Credit Card" »

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" »

When it comes to the current economy, there's good news and there's bad news, according to Atlanta bankruptcy attorneys.

First, the bad: Employers eliminated 20,000 jobs last month, way more than economists predicted and enough to send the stock market in a small downward spiral.

Now the good: Unemployment had reached a lower level than expected last month, dipping below 10 percent for the first time in awhile. Furthermore, it looks like credit might be easier to come by. Banks are finally taking a break from tightening their standards and restrictions for loan seekers. Of course, they're not easing up on those new rules, either, but at least things aren't getting worse.

Here's what it comes down to: We can't control the rate of economic recovery, but we can control the way we view the economy. We've got two choices. We can use the current economic state as an excuse for struggling financially, or we can use it as motivation to make our finances better.

Continue reading "Get Ready for the Economic Recovery By Improving Your Credit, Atlanta Bankruptcy Attorneys Say" »

People customize their cars and computers, yet most would never think to customize their debt relief plan.

Nope, most folks stick to the old idea that they should pay off the debt with the highest interest rate first, according to Chicago bankruptcy attorneys. It's a great plan - if you can afford it. You'll save the most money this way because you won't have to keep paying that crazy-high interest in the future - and you'll put a stop to a principal balance that would otherwise keep growing out of control.

But for many people, it can be a struggle to keep up such high payments. Since the only way to chip away at debt is to pay over the minimum balance - which, at 2-3%, often only covers interest - it can take a lot of discipline and cash to make this method work. And unfortunately, many well-meaning people get discouraged and end up throwing in the towel. But if they would just look at debt relief as a customizable process, rather than one set in stone, they could probably find a plan that works perfectly.

Continue reading "Atlanta Bankruptcy Attorneys Recommend Personalizing Your Debt Payoff Plan " »

You wouldn't dream of turning in a sloppy resume or loan application full of misspellings and inappropriate answers, right?

But many of us are doing even worse when we apply for that loan, job or credit card - and we don't even realize it, according to Atlanta bankruptcy attorneys. It's all thanks to social networking sites like Facebook, MySpace or even our own personal blogs.

Even though it might not seem fair, employers and lenders are using our online presences to gauge our risk - to legally spy on us, so to speak. You know those crazy, slightly drunken photos you took with pals at a friend's bachelorette party? Or the dirty joke your cousin posted on your profile? Right or wrong, the behavior of you and your friends - rather than your debt - could theoretically affect whether you're able to buy a home.

Continue reading "Atlanta Bankruptcy Attorneys Caution That Social Networking Sites Could Harm Your Finances " »

By now, some of us are getting used to seeing footage of the horrific earthquake in Haiti. But there's more than one reason we shouldn't let ourselves become numb to those haunting images.

Not only do they remind us that there's work to be done to rebuild for millions of Haiti's survivors, but they remind us that it's time to be grateful for what we have. Our struggles with the economy in recent months have been real - but they also could have been a lot worse. Most Americans are in debt and millions are unemployed, in danger of losing their homes to foreclosure or both. That's no picnic, to be sure. But the truth is, most of us will go home to a hot meal and running water tonight. Most of us will have a roof over our head, whether we own or rent. And most of us will go home to our families. Most Haitians can't say the same.

I know getting out of debt is no easy task. If it was, we'd all be rich - or at least financially stable. But unlike the weather or geography, debt is something within our control.

Continue reading "Debt Is Easier To Control Than Many Think, Atlanta Bankruptcy Attorneys Say" »

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 " »

You've probably heard it before, but switching to cash instead of credit has the potential to save you a lot of money.

Just to name a few benefits, using cash means you don't have to pay interest, there's no risk of overspending since you're limited to the contents of your bank account and you're more likely to be mindful about spending since you actually see the physical money leave your hands.

But even cash can have its drawbacks - in particular, ATM fees. Sure, it's free to take money out of your bank's ATM, but what about those times when you need to make a purchase but your bank is nowhere in sight? Chances are you head to whatever ATM is nearby, and that will cost you dearly. First, withdrawing from another bank's ATM can result in a fee of $3 or more. Then, your own bank will hit you with a penalty for using a competitor's machine. In the end, taking out just $20 can cost you 25% in interest!

Fortunately, just a little extra planning can ensure that paying cash remains a good deal.

Continue reading "Cash Can Save You Money, If You Use the Right ATM" »

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" »

Imagine that you're given the opportunity to transfer debt from your current credit card to one with a 0% interest rate. Seems too good to be true, right?

Unfortunately, it often is. Sure, it looks like the real deal at first glance. The less interest, the less you pay in the long run, right? But, remember, credit card companies didn't get rich because they put the customer first. There's got to be something in it for them - and that usually means fees, according to the Associated Press.

Here's what credit issuers won't tell you in those balance transfer offers.

Continue reading "Transferring Credit Card Debt Can Cost More Than Its Worth, Say Atlanta Bankruptcy Attorneys" »