Atlanta Bankruptcy Attorney Blog

Spring brings April showers and then May flowers, but it also brings something a lot less pleasant: pain at the pump.

When the temperatures slowly start to go up, so do gas prices. So far this month, the average cost of gas is up 9 cents and is edging ever closer to $3 a gallon - that's 81 cents more than last year, according to AAA.

But there's a silver lining - and it's not just warmer weather. As it turns out, the same economy that is causing Atlanta residents and others to struggle financially is also lowering demand for gas, say Atlanta bankruptcy attorneys.

With unemployment soaring - the Georgia unemployment rate is 10.3 percent as of January - less people are driving a car to work, meaning less people are buying oil. Economists say gas prices might level off at not much over $3 a gallon this summer. But even if they don't, there's more good news. You can minimize the effects of higher gas prices on your own.

Continue reading "Atlanta Drivers Search for Cheap Gas Prices as Oil Costs Increase" »

Even though a weak job market is threatening to stall economic recovery, Americans increased their spending in January, Atlanta bankruptcy attorneys say.

With unemployment still hovering just under 10 percent, incomes remained almost flat in January - rising by around 0.1 percent, significantly lower than what economists expected. And for those lucky enough to retain our jobs, cost-of-living raises are still far and few between - not to mention the fact that some of us have seen reduced hours, furlough days or other paycheck-lowering actions. Yet we spent, on average, 0.5 percent more last month, according to The Commerce Department.

The good news is that we're feeling optimistic. The bad news is that we're threatening to derail our progress. See, the Great Recession has been good for at least one thing. It's increased our savings rate from a negative number for most of the last decade to more than 4.3 percent last year. Now we're starting to see that rate drop again - last month, for instance, we only saved 3.3 percent.

If we want our newfound responsible behavior to stick around, we're going to have to start slowing our spending to match our income. Fortunately, there's a formula to make saving a little more manageable.

Continue reading "Atlanta Bankruptcy Attorneys Are Saving Less But Spending More" »

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" »

Banks are trying to sell consumers on a deal that really is too good to be true, according to Atlanta bankruptcy attorneys.

This summer, a new law will go into effect requiring customers to "opt in" to overdraft protection plans offered by banks (previously many banks enrolled customers automatically - often without telling them). Problem is, banks count on overdraft protection to rake in more than $20 billion in fees annually. To try to recoup some money, banks are sending out millions of letters trying to convince - and in some cases, threaten - customers to sign up.

What is overdraft protection? It's a feature that authorizes banks to "loan" you money when you overdraw on your account with a debit card - for a fee, of course. Here's why it might be a feature you can't afford, especially if you're already dealing with debt.

Continue reading "Atlanta Bankruptcy Attorneys Cautious of Overdraft Protection Pressure By Banks" »

First, credit cards starting adding annual fees and raising rates. Next, bank accounts started getting more expensive. Now health insurance premiums are on the rise, say Atlanta bankruptcy attorneys. What gives?

Employee healthcare plans went up about 5 percent last year, according to the Associated Press. It's even worse for people who buy their own healthcare - those plans are poised to rise by 50 percent or more. But the worst part isn't that we have to pay more each month for health care - it's that new rates might discourage some of us from paying at all. And that's a risk we can't afford, no matter how appealing the savings.

Americans have a right to affordable health care, whether Uncle Sam is paying for it or not. But meanwhile, canceling our plans to save money won't get us anywhere - except in more debt if the worst happens and we get sick. Fortunately, there are ways to cut back without cutting out your plan.

Continue reading "Save on Health Insurance as Premiums Increase, Say Atlanta Bankruptcy Attorneys" »

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" »

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" »

Why put off until tomorrow what you can do today - especially when it involves more money in your pockets?

Technically your tax return isn't due until April 15, but you can actually file as early as February so long as you've received all of your necessary documents - like 1099s, W-2s, receipts from charitable donations, etc., according to Atlanta bankruptcy attorneys. Why would you want to torture yourself early, you may ask? Because you have to do your taxes anyway - and the earlier you do them, the earlier you can get your refund (especially helpful for those of us in debt). With the government looking to stimulate the economy, you might be eligible for some new credits and deductions.

Continue reading "Atlanta Bankruptcy Attorneys Say Early Tax Filing Means Early Refund" »

Someone once said that the only certain things in life are death and taxes. Apparently, they forgot that we also have to eat.

After the mortgage, food is probably the biggest part of the budget for most folks, with the average family spending roughly $600 a month in groceries not to mention hundreds on eating out. It's also the most unavoidable part of most budgets, according to Atlanta bankruptcy attorneys. Like it or not, we have to eat - even when the cost of staples like bread, milk and meat are skyrocketing while our salaries remain stagnant.

But just because we have to buy groceries doesn't mean we can't find ways to cut costs. Changing just a few of your shopping habits can keep your pantry - and your wallet - from hitting empty.

Continue reading "Atlanta Bankruptcy Attorneys Offer Advice on Saving Money at the Grocery Store" »

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 " »

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 " »

When we want to know if that sweater comes in our size, we ask a sales clerk. When we're lost, we (hopefully) ask for directions. Yet when it comes to getting help with our debt, all of a sudden it's mums the word, say Atlanta bankruptcy attorneys.

Even though the vast majority of Americans are in debt, the d-word still manages to be taboo. Sometimes it's because we're in denial and not ready to recognize that a spending problem is jeopardizing our financial future. Other times, it's embarrassment. We suffer our financial troubles in silence because we don't want to admit our mistakes. Either way, the result is the same. We don't ask for help, and we don't get it.

But that stubbornness - not our debt - is our biggest mistake. Two heads are better than one, as they say. You might not be able to see a way out of your debt, but an outsider, like a close friend or relative - or even better, a financial expert - might be able to spot what you can't.

Continue reading "Atlanta Bankruptcy Attorneys Say Asking For Advice Can Be Fastest Way Out of Debt" »