Atlanta Bankruptcy Attorney Blog

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" »

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" »

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" »

Last year's economy did a number on our finances - but it may have done a world of good for our attitudes, according to Atlanta bankruptcy attorneys.

It's welcome news, especially for the millions of Americans hoping to make 2010 the year to break free from debt. Last year, on the other hand, was a big career shakeup. Many of us changed jobs, lost jobs or saw a reduction in work hours. But we haven't simply adjusted by working harder in our newfound free time - we've begun making the most of it. We've started living larger on less money.

Sometimes that means cooking dinner for our families or finally tackling those books we've been meaning to read. Other times it means taking day trips around our home, working in our gardens and spending quality time with our kids. In other words, we're spending less time earning and spending, and more time actually living. Now we just need to get rid of that debt we accumulated before we simplified our lives - and bankruptcy can help us do it.

Continue reading "Atlanta Bankruptcy Attorneys Say Economy Can Help Make the Most of Our Money" »

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" »

'Tis the season for giving, but if many of us don't curb our spending habits, the only thing we'll be giving is our home - back to the bank.

Just as the media was reporting in September that an economic recovery was underway, there were still roughly 4 million homeowners either in some stage of foreclosure or at least three months behind on mortgage payment, according to the Mortgage Bankers Association. Even worse, those foreclosures have been pushing down home values in the cities that are already struggling with the highest unemployment rates.

So why are things getting worse when they're supposed to be getting better? Maybe it's because, bad economy or not, consumers are plain out of cash. Many of us have gone without a raise for years - or worse, without a job for months. In the meantime, we're using credit cards to make ends meet, adding to our already bloated debt burdens. And now with the arrival of the holiday season we're struggling to put fancy meals on the table and gifts under the tree, adding even more financial stress. At some point, homeowners are throwing in the towel. But it doesn't have to be that way.

Continue reading "More Borrowers Default On Mortgages As Holidays Approach" »

I could swear that grocery prices inch higher every day, but apparently (and fortunately for my wallet) I'm wrong - the price of a Thanksgiving meal has actually declined this year. Don't believe me? The proof is in the (corn) pudding.

A survey by the American Farm Bureau Federation found that a family of 10 will pay just under $43 for a Turkey Day spread of bird, mashed potatoes, stuffing, cranberry sauce and the like - that's 4% less than last year and the first decline in nearly a decade. In fact, most food prices have dropped recently due to lower energy costs and the poor economy. According to an American Farm Bureau Federation economist, you can feed your family a hearty Thanksgiving meal for less than the per-person cost of dinner at the nearest fast food joint.

Now, $43 still isn't cheap when you've spent the rest of the year scrimping and saving and generally getting by on as little as possible. But hearing that prices are stabilizing - and in some cases, declining - sure is a relief. When you're struggling to make ends meet, it's easy to think the rest of the world is out to get you, be it the grocery store, the gas station, the mechanic or the doctor's office. But while prices may go up and down, you still have the ability to control your finances.

Continue reading "Consumers Can Be Thankful for Decreasing Grocery Store Prices" »

The best deals this shopping season might already be in your closet.

If you're looking for some extra cash, why not just purge some of your junk? You know, the clothes that don't fit, the gifts that just aren't your thing, the outdated cell phones sitting in a desk drawer. Forget gathering dust -- they could be gathering dough!

Just look at the price of gold, now at a staggering $1,119 an ounce. If you've got some jewelry that's just not your style, you'll probably never be able to sell it for more money than right now. Just a hint, though - there are a lot of scammers out there after your money. Take your jewelry somewhere reputable to be appraised rather than a pawn shop or someone you found in an Internet or TV advertisement if you want to get your money's worth. Read on for even more ways to save money this season.

Continue reading "Clean Out Your House for Extra Cash This Season" »

If you're facing foreclosure, you're officially running out of excuses. But that's good, right?

Just this week, Congress decided to extend the tax credit for new homebuyers beyond its original Nov. 30 deadline. That means you could be eligible for $8,000 back on your taxes when you purchase a property. Better yet, the government has taken note of the thousands facing foreclosure by expanding the initiative to include people who have already owned their houses for five years or more - if that's you, there might be a $6,500 tax break in your future.

Along with the tax credits, Uncle Sam also agreed to extend unemployment benefits for 14 weeks (even longer in states where the unemployment rate has reached 8.5% or more). It's not ideal, but it's a start.

Financially, we've come a long way since the so-called "great recession" began -- and Americans might be more aware of opportunities for financial freedom than ever before.

Continue reading "New Credits, Extensions Available for Homebuyers and Unemployed" »

Even as headlines herald the end of the recession, it's hard to block out lingering negativity.

For instance, unemployment - currently at 9.8 percent, the highest in nearly three decades - isn't expected to peak for another six months. Call it a lag effect, if you will. Foreclosures have risen 5 percent since summer. Costs of health care, gas and groceries continue to increase. And in a recent Gallup Poll, the majority of respondents said they thought the economy was actually getting worse.

But there's still plenty of reason to be optimistic - even if it doesn't make the 5 o'clock news. First, realize that people naturally tend to think the worst during the bad times - just like we tend to be overly optimistic during the good times. I know I can get kind of gloomy on rainy days, while I'm generally happier on sunny days. It's so simple, but it makes sense. Second, as BusinessWeek puts it, recessions can pave the way for future growth by weeding out weak businesses and letting new and improved ventures thrive - sort of a survival of the fittest.

Third, there's something so motivating about a clean slate.

Continue reading "End of Recession Or Not, Get a Fresh Start" »

The recession might be bad for your spirits, but it turns out it might actually benefit your health.

It appears that periods of recession have the potential to increase lifespan, according to a study recently released by the University of Michigan. Researchers found that people who lived through the Great Depression actually lived longer than previous generations. In case you think it's just a coincidence, researchers found similar results across decades - including recent recessions in the 1980s and 90s - and countries.

They're not sure exactly what leads to the longevity, but it could be that people unwittingly adopt healthier habits when economic growth is slow. During a boom, it's all about keeping up with the Joneses. There's a lot of pressure to put in time at work. You manage to pay for gas and your car loan, so you drive everywhere. Maybe you've got some money to blow on stuff you don't necessarily need, like alcohol and cigarettes. You get the picture.

When times get tough, life is still stressful - maybe even more than before - but it slows down.

Continue reading "Recession Bad For Finances But Good for Health?" »

Some people look at today's economy as a curse. But more and more, I'm starting to see it as an excuse - a scapegoat that's holding us back from financial freedom.

In all fairness, I will admit that the state of the economy has an effect on our finances. It can contribute to a lost job (or trouble finding a new one), a home loan worth more than your house or the drastic decrease in the value of your investments. But it isn't the only effect. You know how good memories tend to strengthen with time, while the bad memories fade? Well, I think that's what has happened with the recession. We tend to forget that many of us had financial troubles before the economy went to hell in a handbasket.

Life wasn't always peachy prior to the recession. And it won't miraculously become peachy once the economy recovers (which could be soon, according to this Atlanta Business Journal story). But, believe it or not, that's actually a good thing.

Continue reading "Focus on Your Finances, Not the Economy" »

When you find the right bankruptcy plan, it can almost seem too good to be true. You can get creditors off your back, prevent foreclosure, gain a realistic way to pay down debts and - if you stick with it - finally find financial freedom.

So what's the problem? Sometimes bankruptcy really is too good to be true. Though it can undoubtedly be a saving grace for folks saddled with debt, it can turn in to a nightmare if you fall into the wrong hands.

We're all aware that Americans carry a lot of debt - about $8,000 on average, to be exact. And some of the less honest among us use that fact to their advantage. A recent study by the Attorney General of New York found that 80 percent of online-based bankruptcy websites were scams. These companies prey upon the desperation of the financially-troubled, take their money and leave them further in debt.

So how do you tell the good companies from the bad? Watch for red flags.

Continue reading "Making Sure Your Bankruptcy Plan Isn't Too Good To Be True " »

Forbes.com just came out with its annual list of the most stressful places to live and Atlanta is smack-dab in the middle, thanks to a 25% drop in home values and a 10.7% unemployment rate - a whole percentage point more than the national average.

It's not exactly bad news (hey, we could be at the number-one slot like Chicago), but it isn't good news either. In my opinion, anywhere where people are losing their homes to foreclosure, their jobs to layoffs and their quality of life to the recession is too dang stressful.

But you know what? Regardless of what city - or town - you call home, you have the power to control your stress level. Yes, I realize you can't control all the events in your life - and sometimes job loss, medical emergencies, divorce or other unexpected circumstances take a toll on our finances. But how you handle these events is up to you.

Take your debt, for instance.

Continue reading "Atlanta Economy Helps City Earn Place on 'Most Stressful' List" »