Atlanta Bankruptcy Attorney Blog

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 " »

Remember the old adage a penny saved is a penny earned? Well, believe it or not, it's true. And fortunately, it applies to a lot more than pennies.

Earlier this week, I said that the biggest obstacle to starting a savings plan is getting over your excuses - one of those excuses being that you don't want to have to go without. But that's not an entirely valid excuse anyway. See, a savings plan isn't all about giving stuff up and being frugal - it's about making money. You know how your credit card company charges you an additional rate on the purchases you make, so you continue paying even after you leave the store? Well, this is just the opposite - if you play your cards right, the interest on your money winds up in your pocket.

Of course, it doesn't make sense to earn interest on your savings when you're forking over even more interest to creditors - so, as we discussed on Thursday, it's a smart idea to first put your savings towards eliminating your debt. Then it's time to earn money your way.

Continue reading "How Interest Can Maximize Your Savings Plan" »

If you knew of a safe, reliable method to achieve financial independence, you wouldn't hesitate to use it, right? I didn't think so. Yet potentially millions of Americans have access to a surefire way to free themselves from debt - and they refuse to consider it. I'm referring to bankruptcy.

Bankruptcy is your right as a U.S. citizen. It legally stops creditor actions like foreclosure and repossession. It offers an affordable method of paying off non-mortgage obligations like credit card, medical and IRS debts while freeing up money to pay for your other bills, including your mortgage. What's not to like?

However, many folks treat bankruptcy as a last resort rather than a valid option, worrying that it will damage their credit, prove too difficult to navigate or be viewed as taking the easy way out.

But if you're drowning in debt, it's time to face the facts.

Continue reading "When to Consider Bankruptcy for Debt Relief" »

There's a longstanding myth that bankruptcy is for deadbeats. But the truth is, most folks who file for bankruptcy have jobs or are actively looking for work. Most can pay some bills. Most are intelligent, responsible, God-fearing citizens. They just need a little help.

If that's not enough to convince you that bankruptcy is more of a financial tool than a form of surrender, how about these famous names - Donald Trump, Walt Disney, and Abraham Lincoln. Each one found success after filing for bankruptcy.

Even baseball teams are not immune. News just broke that the Chicago Cubs are considering a bankruptcy filing. No, the Cubs aren't broke. They still draw 3 million fans to their home games annually. But their owner wants to make sure the team is free from liabilities so a potential buyer won't have to worry about fighting off creditors in the future.

Bankruptcy doesn't have to be a last-ditch effort. It can be a smart strategy.

Continue reading "Famous Folks File for Bankruptcy, Too" »

Whether or not we like to admit it, following the crowd is part of human nature. When we're babies, we learn to walk and talk just like Mom and Dad. Growing up, we want the same toys, clothes, and eventually cars as our friends. As adults, we try to keep up with the Joneses by acquiring the latest gadgets and accessories.

Sometimes we imitate each other without even realizing it. Take me, for instance. I've always liked to think of myself as an original - someone who follows her gut, who doesn't bow to peer pressure, who marches to the beat of her own drummer. Until I realized I was a total lemming in one important area of my life - my finances.

My family and friends have always been heavily reliant on credit cards. So, of course, I followed in their footsteps. Up until a few years ago, I basically had a mini-credit card museum in my wallet. Nordstrom, Macy's, Best Buy, Target, you name it. If I shopped there, I had a card.

I also had a lot of debt.

Continue reading "Stand Out From the Crowd to Get Out of Debt" »

A new credit card act that's supposed to protect the consumer might be having some unintended side effects.

Here's the deal. Starting in February 2010, credit card companies will become limited in how and when they can charge fees and make terms changes, thanks to the Credit CARD (Card Accountability Responsibility and Disclosure) Act. But does that mean credit issuers are turning over a new leaf and actually caring about the well-being of their customers? Heck no.

Before the new rules go into effect, they're trying to squeeze in some last-minute changes. Most noticeably, more and more folks are seeing their APRs go from fixed to variable, according to this article. Even if you signed up for a card with a fixed rate, companies only have to provide a 15-day notice - less than one billing cycle - to change your rate.

Continue reading "Credit Card Companies Squeeze in Changes Before Consumer Protection Law Takes Effect" »

After 13 years in the public school system and four years of college, I've put in my time when it comes to education. But somehow, seeing the kids head back to school with their new backpacks and notebooks makes me a little wistful.

It's not that I want to return to the classroom (though my grandparents are always hoping I'll go back for my master's). And it's not that I'm looking for an excuse to do some back-to-school shopping - I think I've been doing a decent job of avoiding the mall, thank you very much.

No, what intrigues me most is the potential for change. It's the idea of wiping the chalkboard clean, if you will, for a fresh start. Remember how going back to school every fall meant a chance to reinvent yourself? Well, why can't the change of the seasons mean the same thing now, particularly when it comes to finances?

Continue reading "Educate Yourself Out of Debt with Atlanta Financial Workshops" »

Sometimes it seems like there's no way to win.

Americans are saving at the highest rate in years and paying off debt in record numbers. Recently the Federal Reserve announced that June saw the fifth straight month of reduced credit card debt. It seems like frugality has finally caught on.

That sounds like good news, right?

But some economists fear that all that saving is going to squelch economic recovery. When consumers keep their cash in the bank (or worse, under the mattress), it doesn't get spread around to create more money - at least, that's the economic perspective.

I can see their point. But I think they're failing to take into account some important factors. First, economic growth isn't just about consumer spending. It's about unemployment - which is currently hovering above 9 percent. It's about real estate and the foreclosure crisis. And it's about credit - lest we forget, we might not be in this mess had we not outspent our means.

Continue reading "Prioritize Your Own Economic Health Over the State of the Economy" »