Atlanta Bankruptcy Attorney Blog

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" »

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 " »

Think those late payments are only hurting you? Think again.

Americans strapped for cash have been slow to pay their bills. And in turn, the people and businesses we're paying are slow to pay their own bills - slowing down the wheels of the entire economy, according to Atlanta bankruptcy attorneys. For example, a recent study showed that engineering and architectural businesses were paid an average of five days later in 2009 than in 2008, as mentioned in the New York Times. Tax preparers and accountants fared even worse, getting payments about 10 days later.

There's generally not much we can do as individuals to change the economy. But this might be the exception. By lowering debt so you can make on-time payments you not only help yourself, but you help the larger economic picture.

Continue reading "Atlanta Bankruptcy Attorney Advice For Avoiding Late Bill Payments" »

Contrary to homeowner hopes, Uncle Sam's $75 billion mortgage modification program may be causing more bad than good.

Created early last year, the program was supposed to encourage banks to modify loans of the millions of Americans facing foreclosure. Unfortunately, it's managed to permanently modify just 35,000 - a drop in a rather large bucket, when you consider that 15 million U.S. homeowners are underwater, meaning they owe more on their loan than their house is worth. And of the homeowners that did get help, many went into foreclosure anyway since the program only required banks to lower mortgage payments - not to restore any equity.

But the biggest problem isn't that the program is failing - it's that it's given folks a false sense of security. Many homeowners held out hope that the program would save their home, so they didn't take preventative measures that could have stopped foreclosure, such as Chapter 13 bankruptcy. Fortunately, there may still be time, according to Atlanta bankruptcy attorneys.

Continue reading "Atlanta Bankruptcy Attorneys Warn That Government Mortgage Program Is Increasing Foreclosures" »

With holiday shopping season in full swing, many of us are worrying about whether or not we're putting too much on the old credit card. But soon we might have a different worry - do we have too little credit?

Along with the housing and job markets, consumer credit has shown little sign of recovering since collapsing last year. After years of handing out credit like candy via subprime mortgages, retail stores and mailboxes (I'm not kidding - I know kindergartners who got credit card offers in the mail) lenders are tightening up their belts, giving out credit to only those with the very best credit history.

If spending more than we earned got us into this financial crisis, having less credit going around might seem like a good thing. But the problem is, some credit is necessary for the financial world to go round - and for our economy to recover.

Continue reading "Credit Getting Tighter For Consumers" »

With money tighter than ever this season, folks are looking for ways to cut back without cutting out Christmas gifts.

On the positive side, sticking to a budget is encouraging us to be less materialistic and more creative, giving homemade and small but thoughtful gifts (not to mention it's a lot easier on our wallet that the standard Christmas shopping spree). But some seemingly "free" presents can actually cost us more money than a store-bought gift - and, in the worst-case scenario, can leave us deep in debt.

Co-signing loans can seem especially appealing during tough economic times. Our friends and family need help buying cars and homes, and we're looking for affordable ways to show them we care. Let's say your cousin is in the market for a new car, but she's having trouble getting the loan. You figure you'll offer to put your name on her car loan in lieu of a physical Christmas gift. It's a win-win, right?

Not necessarily and here's why.

Continue reading "Atlanta Bankruptcy Attorneys Warn That Becoming a Loan Cosigner Isn't Worth the Cost" »