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" »

Most of us don't think twice about paying for health, home or life insurance - and that's a good thing. The problem is when we don't think twice about paying for collision, identity theft, or cell phone insurance.

There are financial products that are worth the risk, and those that aren't, according to a new list by Consumer Reports. And if we take the time to weigh the pros and cons - instead of blindly buying what companies tell us to - our savings might well exceed the extra gamble, say Atlanta bankruptcy attorneys.

Continue reading "Living Without Phone Insurance and other Financial Products Can Save Money" »

If at first you don't succeed, try, try again - it could be the motto of big banks following Thursday's passage of the financial regulation bill.

Banks have for months been attempting to stop the legislation, which will cut into their profits from debit card fees - and which could in turn lower prices for the many folks struggling to pay the bills, say Atlanta bankruptcy attorneys. But now that Plan A has failed, banks are turning to Plan B - shifting fees somewhere else.

Continue reading "Big Banks Add New Fees to Counter Passage of Financial Reform Bill" »

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" »

Taking out a loan to pay off debt doesn't really make sense - after all, a loan means more debt.

But that's exactly what millions of Americans do each year when they sign up for debt consolidation loans. From the alluring promises made in debt consolidation ads, it's hard not to be curious. Combine all your debts - mortgage, car loan and credit cards - into one easy low-rate payment, they say. Save thousands a year! Wipe out credit card debts!

It sounds too good to be true - and at DebtStoppers, we know that means it probably is!

Continue reading "Debt Consolidation Loans Can Leave Atlanta Residents With More Debt" »

Would you go back to school if Uncle Sam promised to foot the bill?

A lot of Americans are saying yes to scholarships. Unfortunately, they might also be saying yes to scam artists - and debt.

Scams have been popping up with ever-increasing frequency since the economy took a major nosedive in 2008. And one of the most common scams promises college scholarships and grants to certain demographic groups - for instance, those making less than $30,000 a year (give or take), stay-at-home moms or for the recently unemployed.

Problem is, the offers are often traps. Scam artists ask for a processing fee - or your personal information - and when you comply, they take your money and disappear, leaving you in more financial trouble than before.

Continue reading "College Scholarship Scams Land Atlanta Students in Even More Debt" »

Most of us would agree that 50% interest is way too much to pay for a credit card. Yet many Atlanta residents are paying annual rates of 500% or more - we just don't realize it.

How? Payday loans. Maybe you know the drill. For whatever reason, you come up short on the bills one month and payday is still a week away. A short-term loan seems like a quick, easy way to get the cash you need upfront -you figure you can worry about the fees later.

Problem is, these are no ordinary fees. In the payday loan world, fee is code for interest. And with interest rates like these, you might end up in debt - and more strapped for cash than you were in the first place.

Continue reading "Payday Loan Centers Are Leaving Atlanta Workers 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" »

Most folks don't budget bank fees into their finances - but if we're not more careful, maybe we should.

Atlanta banks - as well as banking institutions all over the country - are taking increasingly larger chunks of our paychecks. Between annual account fees, monthly "maintenance" fees - even fees for writing too many checks - some Americans are paying hundreds of dollars annually. The worst part is, many of us don't even realize it until we happen to glimpse our banking statement, according to Atlanta bankruptcy attorneys.

Shelling out $20 a month just for being a banking customer doesn't make sense - especially not when there are options that can eliminate those fees. That's twenty bucks that could be spent on treating yourself to your favorite mocha frappuccino - four times. Or more practically, on groceries or gas. Instead, you're giving that money away and getting nothing in return. If that sounds like a bad deal, here are some ways to fix it.

Continue reading "Atlanta Bank Account Fees Leave Some Customers in Debt" »

Maybe 2010 will someday be remembered as the year of credit card reform.

Laws have already been passed to limit unfair credit card fees, interest rate increases and billing cycles. And now the Federal Reserve is asking for another limit. If passed, credit card issuers won't be able to you charge a fee higher than the amount of your violation. For example, if you go $10 over your credit limit, you'll only pay $10 or less - not the $39 fee or some other ridiculous number you pay today. Additionally, cardholders will be protected from inactivity fees and from being charged multiple fees for the same indiscretion.

Sounds like a good deal, right? But here's the thing - if you want to take advantage of this new law, you're going to have rethink the way you use credit. And filing for bankruptcy might be the way to do it.

Continue reading "Atlanta Consumers Could See Lower Credit Card Fees With New Legislation" »

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" »

If you're shredder-happy when it comes to your junk mail, you may want to start exercising a bit more caution.

Americans are used to being bombarded with junk mail from creditors, from new card offers to routine legal notices. But with credit card companies coming up with ways to counteract the new consumer protection laws, those notices are actually starting to contain important information.

For example, Citibank and Bank of America notified consumers that they would be piloting an annual fee, while another company, American Express, announced plans to punish late-paying cardholders of Delta Airlines, JetBlue and Starwood and Hilton hotels by taking away their mileage and hotel rewards points.

What else could consumers face in coming months? Let's see, bigger late fees, higher interest rates and fees associated with customer service calls, paper statements or simply inquiring about having a higher credit limit. So what can you do to keep up with all these potential changes? Simple: check your mail!

Continue reading "Keep An Eye Out for New Credit Card Changes" »

If banks have their way, free checking could become a thing of the past. But we don't have to accept it without a fight.

You know how I discussed the way credit card companies have been hiking up rates in light of the new consumer protection legislation? Since they can no longer charge unfair fees or trick us with sneaky term changes, they're finding other ways to make us pay - i.e., annual maintenance fees and lower credit card limits.

Well, banks seem to be headed down the same path. With Congress discussing some sort of protection against overdraft fees - those sneaky charges banks hit us with when we accidentally charge more on our debit cards than we have in our account - banks are starting to look for other sources of income. After all, most of their profits these days come from fees, not lending. And their latest source of money is the monthly maintenance fee.

Continue reading "Atlanta Bankruptcy Attorneys Wonder What Happened to Free Checking" »

For every two steps forward, credit card companies just have to take one step back.

You've probably already heard about the new credit card legislation going into effect to protect consumers from hidden fees and unfair rate hikes. As of February, that means no more double-billing cycles. No more confusing fine print. No more raising your interest rate unless you're at least 60 days late on a payment - and even then, restoring your original rate if you prove that you can pay your bills on time.

That's the good news. The bad news? Creditors say that they'll have to make up for their lost income by punishing all of their customers - good credit or not - with annual fees and higher interest rates. And they mean business. Bank of America recently announced plans to test a $29 annual fee on its rewards cards.

Continue reading "Creditors Add New Fees Before Card Reform Takes Effect" »