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" »

Too bad they don't teach you about debt in college - maybe more of us would be able to afford our student loans.

Not surprisingly, the economy seems to be having an effect on loan default rates for college students. Forty percent of students at private universities now default on loans, according to a report by The Chronicle of Higher Education. Community college rates aren't much better, with 31 percent of students unable to foot the bills.

Look, it's no cakewalk to get through school, let alone hold down a job and pay for a place to live, a car to drive and food to eat - all while paying down debt. But if you default - rather than get the help you need - you could do serious damage to your future finances.

Continue reading "More Atlanta College Students Are Defaulting on School Loans" »

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" »

When you're looking for a way to save money, canceling your insurance policy can sound pretty tempting - especially when rates keep rising.

Rates for auto, health, life and homeowners insurance policies have been on the upswing as insurance companies struggle with rising expenses, an unstable economy and the costs of the many large-scale disasters in recent decades - including 9/11 and Hurricane Katrina. Those costs get passed on to us, the consumer. And when we're already faced with immediate bills - like the car payment, mortgage or multiple credit card bills - paying for insurance might seem like a hassle, even a waste.

But it's just the opposite, say Atlanta bankruptcy attorneys. Your insurance bill could be the most financially rewarding payment you make.

Continue reading "Insurance Can Be the Difference between Debt and Survival for Atlanta Policy Holders" »

When you think of a debt relief company, you usually think of a company that, you know, relieves debt. But believe it or not, you might be wrong.

We've all heard the claims by debt relief firms, be it on the radio, TV or our computer. They can negotiate with creditors on your behalf, lowering -- or eliminating -- the amount you owe. And they can do it all for a low monthly rate. And virtually overnight. For the many folks $10,000 or more in debt, it sounds like a miracle.

Unfortunately, it is like a miracle - in that it very rarely happens.

Continue reading "Bankruptcy Can Do What Atlanta Debt Relief Companies Can't" »

How frequently do you check your credit card statement?

If you're like most folks, you simply read your balance and write a check. After all, why would you want to think about all that money that goes down the drain each month, right? But if you don't check up on your charges, your loss could literally be somebody else's gain.

The Federal Trade Commission recently busted a group of scammers that stole millions of dollars from millions of credit card users for over four years. How did they get away with stealing so much for so long? Easy. They took small amounts from each victim - a quarter here, 75 cents there - which they figured no one would notice. Sure enough, very few people reported the charges. But all those pennies add up. If too much debt has you struggling to pay the bills as it is, you shouldn't have to deal with someone getting a free ride off of your hard-earned dollars.

Continue reading "Why Atlanta Credit Card Holders Should Read Their Credit Statement Every Month" »

If you're tired of the fees your bank is tacking on to your checking account, how about forgoing the bank altogether?

Don't worry, I'm not advocating that you store your paycheck under the mattress - I'm talking about considering a credit union. As banks make simple checking accounts more expensive with things like account maintenance fees, balance transfer fees, minimum deposits and other annoyances, cash-strapped customers are looking for alternatives, say Atlanta bankruptcy attorneys. And with lower rate credit cards and certain loans, a credit union might be just the solution.

Continue reading "Credit Unions Offer Better Deals Than Banks For Some Atlanta Customers" »

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 proposals in a new finance bill passed by the Senate come true, the finance industry could get a lot easier to navigate for Atlanta consumers.

We're talking free credit scores, a reduction in mortgage penalties and the creation of a new oversight agency to protect consumers. Watch out, lenders - the game might be played differently when consumers actually have a fair shot.

Here's a quick summary of some of the bill's most intriguing possibilities. But first, a disclaimer: this is all still speculation. We don't know when the bill will be finalized, or what will be left in it when it is. If you're looking to lower debt and improve your finances, you can't afford to wait for the government to hold your hand - not when there are effective ways to take matters into your own hands, like bankruptcy.

Continue reading "Proposals in Finance Bill Could Help Atlanta Consumers Save Money and Improve Credit" »

Forget the old question, "What came first, the chicken or the egg?" The new riddle is, "What came first, the spending or the debt?"

Millions of Americans currently spend more than they earn, say Atlanta bankruptcy attorneys. Sometimes it's because they have too much debt. But other times, they have too much debt because of their spending. In order to free up your finances once and for all, it's important to identify whether your shortfall is caused by circumstances beyond your control - or a spending addiction.

If your paycheck just isn't cutting it, maybe it's time you asked yourself a few questions.

Continue reading "Shopping Addictions Are Keeping Some Atlanta Consumers in Debt" »

The days of sticker shock at your cell phone bill may be coming to an end, say Atlanta bankruptcy attorneys.

On Tuesday, the Federal Communications Commission announced it's considering a plan to alert wireless customers of unusually large cell phone bills - for instance, if one month you take a vacation and accumulate roaming charges that aren't covered by your regular plan, your provider will need to let you know before your bill arrives.

It's a move that could certainly save cell customers some change. But why wait? You have the power to keep track of - and prevent - such high bills. All you have to do is keep closer tabs on your account.

Continue reading "Tracking Wireless Charges Can Help Customers Lower Cell Phone Bills" »

If your mailbox seems a little fuller lately, it's probably not your imagination.

After all but drying up during the recession, credit card offers are making a comeback. Banks are feeling optimistic that consumers are ready to spend, and to take advantage they're stuffing mailboxes with advertisements, say Atlanta bankruptcy attorneys.

It's a bittersweet milestone. On the one hand, credit card offers indicate the economy - and consumer confidence - is finally improving. On the other, it means new opportunities for us to damage our credit and add to our debt.

Continue reading "After Months of Tight Credit, Banks Begin to Mail Credit Card Offers to Atlanta Consumers" »

You wouldn't run the Atlanta Marathon without training first, right? Then why would you buy a house - probably the biggest purchase you'll make in your entire life - without getting your finances in shape?

Yet that's what thousands of Americans could be doing as they rush to sign the paperwork on their first home by April 30, the last day to qualify for an $8,000 first-time homebuyer tax credit - or $6,500, if you're an existing homeowner who's lived in your previous residence for at least five years.

But there's no need to feel bad if you didn't make the deadline, say Atlanta bankruptcy attorneys. In fact, taking the time to ensure you're financially prepared will make it easier to buy - and retain - a home than any cushy tax write-off.

Continue reading "Lowering Debt Can Help Atlanta House Shoppers More Than Homebuyer Tax Credit " »

A friend in need is a friend indeed, according to the old adage. But sometimes the best way to help your friends is by not helping them at all - at least when it comes to co-signing a loan.

Sure, it can be tempting to help a friend borrow money they need. But what's good for your soul can spell disaster for your bank account, explain Atlanta bankruptcy attorneys.

Continue reading "Co-signing a Loan Can Bankrupt Friendships and Leave You in Debt" »