Chicago Bankruptcy Lawyer Blog

Up until a few days ago, I felt that the Thanksgiving festivities just weren't the same. For one thing, it's about 90 degrees here, so it's hard to get in the holiday mood. For another thing, my side of the family is all in the States, so it's just me, hubby and the kids who celebrate the day, and the kids have school until 5:00 pm. Then, there's the issue of the meal itself; granted, with a great deal of effort (and about $80) I can find a turkey and some of the most basic of trimmings like potatoes and green beans, but I'll have to forego the jelled cranberry sauce and apple pie. Oh, and there's no parade on TV, either.

But, those things aside, it just that I felt we didn't have a lot to be thankful for, you know what I mean? This has been a rough year - we've still not completed our own home (though we've got no mortgage on it, everything is paid for with cash, and other priorities have put the brakes on the building), our old car has been having chronically expensive maintenance pangs, the world's economic crisis and rising oil prices have put our trip across the pond to see my family on the back burner (again), we're managing with a single monthly pension payment to make ends meet in the face of rising prices on nearly everything, and our daughter was diagnosed with juvenile diabetes this past summer, adding to our emotional stress and monetary woes. No, there hasn't been a lot that we can be thankful about this past year.

I am usually the "cup is half empty" kind of person, always looking for the negative. But I started thinking about the "cup is half full" perspective and came to an amazing conclusion: Forget about half full -- our cup runneth over. We really have a lot to be thankful for.

We are not homeless, nor are we in fear of losing our home as are so many Americans who are facing eviction and foreclosure. We have a place that we're living in right now and a home that has almost reached the occupancy stage.

We have a car that is still gets us where we need to go, or access to a back-up taxi and driver otherwise. And while car parts for our heap may be expensive, labor is cheap, so it evens out in the end. We own the car outright (we should, its 14 years old!) and don't have to worry about making payments on a car note.

We can communicate with my family, at any time, over a landline or cell phone, or talk cyber face-to-face over the internet using VOIP technology - I can almost be there. (And if I call at the right time, I'll be able to watch the Thanksgiving Day parade on their television.)

The funding of our monthly pension payment is fixed, steady and reliable. I know many people, including members of my own family in the U.S., are seeing significant reductions in their pensions and retirement plans, or have seen their savings depleted.

If we should need extra cash, we are fortunate because we can find work either through local consulting or online freelancing. Several people that I know in the U.S. have recently lost their jobs or seen a huge reduction in their working hours; others are facing the threat of job cuts. My own brother who is a self-employed building contractor hasn't seen any work in months.

Our daughter is alive. And her basic medical necessities can be satisfied here for far less than we would pay in out-of-pocket expenses, even through medical insurance in the U.S. I estimate that in any given month, our daughter's diabetes related needs cost us about $300, which includes glucose meter strips and insulin. An uninsured or underinsured person in the U.S. would like pay more than double that.

If, after you've finished reading this you thought to yourself, "Yep, that's me, having too much debt or facing foreclosure or out of work or paying a small fortune for medical expenses," you might be wondering what you've got to give thanks for. How about this? Help. DebtStoppers bankruptcy and debt relief attorneys want to offer you a reason to be thankful. We can help you with your personal debt, impending foreclosure, financial problems and economic worries.

So, tomorrow morning, right after you've finished that piece of pecan pie that's been calling your name, you go and give us a call. Contact a DebtStoppers bankruptcy and debt relief attorney, and once you've had the opportunity to sit and talk with us and learn what your options are, you'll have a new positive outlook on your economic future. Certainly, you'll see, as I did, that it really is a wonderful life. Forgive me, I couldn't resist.

As a young adult, there are a few key moments in your life when you feel truly grown up. Graduating from high school, getting your first car, moving out on your own—these are the classics. But in the past few decades, another more dangerous (financially, at least) rite of passage has emerged—the credit card.

I got my first Visa at the end of senior year, which shouldn’t be surprising considering the card offers started rolling in as soon as I graduated junior high (nowadays, my friends say the offers start arriving for the kids when they’re still in diapers). Problem was, no one ever explained to me how credit worked. I remember my jaw dropping when I opened my first bill and found, to my delight, that I only owed $10—the minimum payment. I knew I had dropped at least a few hundred bucks on textbooks (and CDs and clothes and so on), but I only had to pay a measly ten! I felt like I had won the lottery…or at least stumbled upon the secret to living the good life.

Until a few years down the road, of course, when I left college with a degree—and more than $10,000 in debt. I had always thought of debt as something that only happened to wild spenders, the kind of people who buy a new, larger big-screen TV every Christmas. But now I know it can happen to anyone. I don’t think we’re in a credit meltdown because Americans are over-the-top greedy or materialistic. I think it’s because no one ever told us how to make good credit choices (or we were too stubborn to listen when they did).

Back when my parents were in high school, they had to take home economics. We poke fun at home ec today (between the sewing, cooking, and cleaning, it’s so 1950s homemaker), but those classes taught young adults how to survive in that time period. When I graduated, I couldn’t cook a meal to save my life, had to take my jeans to the tailor for hemming (which I still do), and didn’t really know what debt was.

We need to do more to help our kids handle today’s obstacles. And until the public school system picks up on the idea, it’s up to us to teach them—and ourselves—how to spend wisely.

If you swipe your cards in front of your little ones, they probably think you’re paying with magic—not money. Make sure they understand everything that goes on the card also goes on the bill—and that real money comes out of your checking account to pay that balance. With older kids, it’s even more important. You probably tell them money doesn’t grow on trees, but if you treat your credit card like a money tree, they won’t believe you—and they’re likely to make the same mistakes.

You can’t really preach what you don’t follow, which means you might need to re-educate yourself. If you’re carrying credit card debt, stop. Don’t apply for any new cards or loans. Quit spending more than you earn. Can’t figure out how? That means it’s time to make a budget and identify places to cut back.

Pay your credit card off in full each month, or at the very least, make more than the minimum payment. Maybe you signed up for the low promotional rate when you got your card, but most credit companies hike that rate up to 18-40 percent after the first few months. Ask yourself, would you pay $300 for something that was marked $100 in the store? Of course not! But that’s what you’re doing in the long run when you only make minimum payments—which barely cover interest. Credit card companies aren’t giving you a break—they know that the less you pay each month, the longer you will have to keep paying, giving them more money in the process. Wouldn’t you rather keep that cash for your family?

All it takes to change your credit habits is a little motivation. Changing your past is not so easy. If you’re struggling with debt you’ve already incurred, don’t feel bad about seeking help. Call or email DebtStoppers to meet with one of our debt relief attorneys. We’ll help you get your finances in order and prevent foreclosure on your home. Maybe you never passed Credit Card 101, but it’s never too late to learn.

I just read the other day that women, especially low-income women, are disproportionately affected by the downturn in the U. S. economy. To that I say, "D'oh." Tell me something I didn't already know. It's been said that behind every great man is a woman (though I say, beside, not behind!), so why is it that women, in general, are given such short shrift in all matters relating to finance and money?

• Of the 37 million Americans who are living in poverty, more than 70% of them are women and children.

• Minimum wage (and below) workers are predominantly (67%) comprised of women, and women working full time earn almost 25% less than their male counterparts, in all tiers of employment.

• Eighty percent of families with only a single parent are headed by women.

• By almost 40%, women are more likely than men to have a sub-prime mortgage loan, despite the fact that their FICO scores are generally higher than men's.

• Foreclosures and evictions affect minorities, women and the elderly in disproportionate numbers.

What is also very worrying is the increase in unemployment rates. In October, the unemployment rate reached 6.5%, the highest it's been in more than 14 years. In nominal figures, that's a loss of 240,000 jobs. The Federal Reserve Bank predicts that it could go as high as 7.6% over the next year.

A very worrying phenomenon is that lower income wage earners, especially those without a degree or specialized skills, are at an increased risk for losing their job, such as it may be. As unemployment rates rise among degreed and skilled job holders, they will in turn be forced to accept a lower-paying job just to stay in the job market. So those individuals already in the lower-paying job will be edged out. And that is yet another example of trickle down economics gone awry.

While the recent "news" is sobering, it is effective in drawing attention to those vulnerable people whose voices are usually unheard. And the best part is that people (important and influential people) are listening, including the FDIC Chairman, Sheila Bair, and the President-elect, Barack Obama.

Already, there is a strong sentiment in Capitol Hill that the revised bail out plan should also benefit home owners whose property may be foreclosed upon soon (thank you, Ms. Bair). In addition, it's expected (hoped) that the incoming Democratic administration will offer up a new stimulus package that helps, specifically, the affected low-income wage earning women and elderly among us. The stimulus package should provide long term solutions, including investment in construction and increased cash benefits to social support programs that are depended upon many minorities, women and the elderly.

President-elect Obama also laid out his plans for the stimulus package, and while he didn't go into specifics, he did say that his priority will be to get Americans working, and he will attempt to create 2.5 million jobs through a kind of "New Deal" program whereby roads will be built or repaired, schools will be constructed or modernized, and we will work to develop alternative technologies that will reduce our dependence on oil from the Middle East.

While all this talk about the "new and improved" bailout plan sounds good, bear in mind, "talk is cheap," and we're all anxiously waiting for some administration to put their money where their mouth is. But by the time the bailout plan is actually put into action, it may be too little, too late for some people - specifically the individuals who are being foreclosed upon now, and struggling to pay their mounting debt while the risk of losing their job looms large. In fact, until that bailout plan is put into action, we really don't know how much help will be given to the vulnerable who need it most.

Fortunately, you don't have to wait for help from any bailout plan. Help is available to you right now. By contacting a DebtStoppers bankruptcy debt relief attorney, we can stop foreclosure proceedings and help to consolidate or eliminate your existing debt.

To give or not to give? It might be the unspoken question of this holiday season. Americans normally have a reputation as a generous bunch. We give twice as much as the next charitable country (Britain), with somewhere between 70-80 percent of U.S. households doling out dollars each year. And the giving frenzy speeds up during the holidays, when we’re feeling extra warm and fuzzy.

But, no mistaken, this time is different. Our wallets are a little (OK, a lot) thinner, our morale a bit lower. Most of us are struggling to figure out how we’ll pay for our own Thanksgiving dinner and Christmas gifts this year—let alone for people we’ve never met. It sounds stingy, but I know I can’t afford to donate a 15-pound turkey, cough up the registration fee for our city’s annual 5K charity run, or buy a fancy toy to stuff an anonymous child’s stocking this year. Come December, I’ll be slinking guiltily by the bell ringer at the supermarket.

So, what’s a well-meaning but on-a-budget person to do?  It depends. Your No. 1 priority is your family’s well-being. Don’t feel obligated to give if doing so would jeopardize that. It’s your money, it’s your life. That said, there’s no denying the benefits of philanthropy. Like mom and dad always said, there is always someone worse off than you. Along with helping someone have a happier holiday, donating is also potentially tax-deductible and sets a good example for the kids.

While cash is the preferred currency of most charitable organizations, it’s not the only one—and it’s not very realistic during hard times. Here’s how I plan to donate on the cheap this year:

Give your time

People say time is money. But giving up a little bit of your weekend or down time to help someone less fortunate won’t cut into your bank account the way writing a check will. Contact your local volunteer center to find out where you can help. You can even get started this Thursday, when most communities have a Turkey Day feed. Yes, it’s work on a holiday, but what would you do on Thanksgiving morning anyway—sloth around in your PJs watching the Macy’s parade on TV, resting up for the big meal? Here’s a tip—those giant balloons are always the same. So get outside, roll up your sleeves and scoop some mashed potatoes for the hungry. Believe me, your own feast will taste even better later.

Give your stuff

Help others and clear out some space in your house by donating clothes, linens, toys and other stuff you know you won’t use again. Have the kids outgrown their shoes? Is your linen closet overflowing? Would your rather eat paint than wear the sweater grandma bought you last year (you know, the one with the dancing cartoon reindeer on)? Put it in a box and drop it off at your local shelter, thrift store, or church. Especially needed as the weather turns are warm coats and blankets.

Give as a gift

You’re going to spend money on Christmas gifts anyway—why not make some small donations in the names of friends and family? It might not work for everyone, but I find it’s the perfect present for hard-to-buy-for groups like co-workers.

Bonus

Besides feeding your conscience, helping others keeps your mind off your own worries. Instead of thinking about what you don’t have, you’ll see what you do have—and how you can use it to make a difference. Looking for more ways to get your mind off money? Pledge to start the new year fresh by conquering debt, holding on to your house if you're facing foreclosure and starting a savings plan to stay financially secure into the future. In the spirit of giving, DebtStoppers is offering a free one-on-one debt analysis. Consider it a donation, courtesy of our debt relief and bankruptcy attorneys. And remember, it’s good to help others—but don’t forget to help yourself.

Well, that would be me. Complaining, it seems, is as much a part of my DNA as my eye color and my shoe size. My mom would say that I was "getting my dander up," but truthfully, all my complaining only resulted in pinker cheeks and a rapid heartbeat. I complained about everything, but my pet peeve was what I called "consumer injustices." That basically amounted to purchases I wasn't happy with because they weren't up to my standards.

The problem was, even five years ago, if I bought something from the store for a couple of dollars and got it home and it didn't work, I'd complain and toss the offending article into the garbage can. It was hardly worth my energy to do more. But, now, struggling to make ends meet, if I buy something that doesn't live up to expectations, it's more than just an annoyance, it's a monetary disaster. We really can't afford to buy a replacement.

Finances being what they are, I knew that I needed to learn how to complain the right way. The learning process started out of necessity; I complained about something to my husband who listened politely and then responded, "So, why are you telling me?" And it dawned on me: He's right! Why was I telling him? He couldn't fix my problem. But I knew who could. Right on the package of whatever annoyance was annoying me was a customer service hotline number, and I called it.

I called for various reasons - not the right amount in the box, defective, didn't work the way I expected - because it just didn't meet my expectation. Given the preciousness of my money, it was now worth it to me to complain. In general, I have been "made whole" and happy when I did call customer service. But there are occasions when my complaint fell on deaf ears, in which case I had to kick my complaining up a notch.

Given my experience, the first escalation has to be with the supervisor or the manager of the customer service hotline. They may have discretion that a regular customer service representative will not. Politely state your problem with their product, and ask what they can do to make you a happy camper. If you're complaining about a product that you regularly use, mention that - they want to hear why you love their product, as much as why you're now unhappy.

If you are not satisfied or your issues have not been completely addressed, write a letter - not an email - an actual paper and envelope type of letter to the appropriate official at the institution. You want to write to the big guy of the company, whether it is the president or the CEO, and tell him your issue with his product. If he's a chief executive worth his salt, he will "own" your problem and see to its resolution. Give it a reasonable amount of time, but if you aren't satisfied, send another letter, this time with a cc to the local Better Business Bureau (or state attorney general, etc.).

To write a letter of complaint that will get noticed (and resolved to your satisfaction) check out www.planetfeedback.com. They can guide you through the process and even point out the correct person to send your letter to.

On the flip side of complaining, if you're happy with a product or service, call that same customer service number and let them know about it. I've found that my non-complaint phone call or letter can generate just as many coupons and freebies. It does pay to be a loyal customer.

The bottom line is that you should not just accept inadequacy, inefficiency, or ineffectiveness whether in a product or in a service. If your complaint is legitimate, then make your voice heard, loud and clear.

We, at DebtStoppers, want you to know that you don't have to settle for what you've got. No doubt, you don't need reminding how difficult it is to make ends meet. But we do want to remind you, that if you're in a precarious financial position, you don't have to accept that either. DebtStoppers is here to help, and we're a mere phone call or mouse click away. When you're already squeezing every cent until it screams, you can't give up with a whimper.

This is an example of a WordPress page, you could edit this to put information about yourself or your site so readers know where you are coming from. You can create as many pages like this one or sub-pages as you like and manage all of your content inside of WordPress.

When I worked the cash register back in my barista days, nothing inspired me and my co-workers to roll our eyes like the sight of a checkbook.

While credit cards could be swiped and wads of cash handed off in the blink of an eye, check-writing customers slowed down the line. They had to pull out their own pen, double-check the amount, and write it all out (in old-school cursive, nonetheless!). Sometimes they’d even record the transaction in their little book before tearing off the check. Then we’d have to run it through a machine to make sure it wouldn’t bounce.

Looking back, it probably wasn’t that much of a hassle. But my fellow baristas and I would giggle over how old-fashioned it all was. I mean, we understood when grandmas pulled out their checkbooks—they were old; they didn’t know any better!—but someone our own age? Come on, didn’t they know everybody used plastic? Credit cards were the only form of money we knew at the time. We could buy virtually anything with them (on top of our already huge student loan debts), whether or not our incomes afforded it. We just paid the monthly minimum, and it was all good. Or so we thought.

Funny how quickly things change. Today, most of my friends are cutting out their cards—or cutting them up. They banished them from their wallets into their underwear drawers or freezers, for emergency use only. You see, everything that we loved about credit was exactly what got us into trouble. Those checkbook customers had it right. They never spent a dime more than they had in their account, and they kept scrupulous records of every purchase. While I haven’t become a checkbook convert (I do have one nowadays, but since I pay most of my bills online, I don’t use it much) I have found a more modern equivalent—the debit card.

Debit has all of the benefits of a checkbook, but none of the hassle. It’s as easy as credit to use, but without the danger. And it seems to be catching on nationwide. Debit purchases this year are expected to surpass credit purchases at Visa—the No. 1 credit card company. In fact, debit in general is growing about 10% faster than credit, according to the Nilson Report.

Here’s what I like so much about debit:

- You can swipe a debit card like a credit card—but the money is directly taken out of your account, so you can’t overspend

-Your bank sends you a monthly debit statement, so you don’t have to slow down the line to record each purchase (or, in the case of cash, fail to keep a record). Your bank takes the notes for you!

-Having a statement helps keep you organized. In fact, keeping a record of what you buy—known as a spending journal—is one of the first steps to creating a budget. By actually being forced to confront your spending, you notice the places where money slips through the cracks (example: you’ve been paying $15 for Netflix every month—but the same unwatched DVD has been gathering dust on your shelf since March!)

-Sometimes debit even literally pays off. For instance, Bank of America offers a program that rolls over your “change” from each purchase into a savings account, then matches it. So if your lunch cost $5.25, that extra 75 cents gets saved—and the bank gives you 75 cents more.

This isn’t to say debit is the solution to every financial misstep. Ultimately, money choices come down to the mindset of the spender, not just the spending method. Sure, debit is safer than credit in many ways. But it’s still just one letter away from what you could wind up with if you overdo it: debt. If you can’t afford to pay the bills because you are spending too much, switching to debit is just one baby step. To get out of debt, you need a full financial makeover. That’s why DebtStoppers is here. Find out about our free debt analysis today.

With the economy in a shambles, everyone is implementing new cost cutting strategies. In our DebtStoppers brochure, Give Yourself a Raise, we talk about forgoing that “gourmet” cup of coffee – quad mocha frappachino – or whatever the heck it is, in favor of an old fashioned cuppa joe from your own kitchen. And you know what? A lot of you must be doing more than just listening, because Starbucks is closing down hundreds of stores (so now you might have to walk two blocks if you really want to indulge).

So, in that spirit, and with the reminder that if a single cup of coffee can make or break an industry (Starbucks 4th quarter profits are down 97%!), to help you keep within your budget, here are some more savings thoughts.

Review your phone bill. If your land line phone is also your life line phone, you should be aware that your phone bill has some amazing information on it, and if you are just casually perusing it to get to the bottom line, i.e. what you owe, you may be missing out on a significant savings opportunity. If there’s a charge that appears erroneous, dispute it. Or a long distance charge that is way beyond what you expected it, call the phone company on it. Trust me on this, the phone company recognizes that there is a lot of competition out there, and they are not going to nickel and dime you for a few bucks. They’d rather credit your account and keep you, than argue and lose you as a customer.

Also bear in mind that there may be a couple of regular line item charges that you don’t even use on your regular bill. For instance, when you initiated service with the phone company, you may have gotten one of those “deals” that gave you Call Waiting, Call Forwarding and Voice Mail for a single monthly fee. I don’t know about you, but I am not going to forward a phone call on my quarter (“Here’s the number, sweetie…”). And why would I ever even need voice mail if I’ve got call waiting? If they can’t reach me right away, it’s because I’m on both phone lines. “Wait your turn,” I say. Two prime examples of waste… call your phone company, and ask what options you have on your phone line and which ones you actually use, and cancel those that you don’t.

Here’s the 411 on 411. Depending on your phone company service plan, you get charged for each and every phone directory inquiry. And let’s not even talk about how many of them are not the correct number – so much for “assistance!” I can dial the wrong number all by myself, thank you very much. Forget about your phone company’s directory assistance and try Google’s version at 1-800-GOOG-411. They’ll even connect you for free. If you’re online, there are several free online directories that you could try, including the yellow pages and white pages. It just makes no sense to pay good money for information that is readily available elsewhere.

Cancel your internet. No, I’m not suggesting forever, but if you’re stuck in a rut with the same old ISP, it’s time to shop around for a better deal – either in cash savings or for faster and better service. At the very minimum, call your current ISP and ask them how you can save money on their service. If they’ve got a special incentive program, you should get it. If you’ve got AOL as your ISP, and are really serious about canceling their service, be adamant about it… my mother has been trying (the key word here is "trying") to get rid of them for years – the only benefit is that every time she calls, they give her three months service for free!

It seems there’s been yet another twist in this year’s economic stimulus check drama—and it might be in your favor.

Uncle Sam is set to distribute about $10 billion in stimulus rebate credits next year, according to a story in the Wall Street Journal. No, Congress hasn’t approved a new round of stimulus checks (though the idea is currently under debate). Instead, it appears that the economic-stimulus law (which was enacted this February) states that checks are based on your income and family situation in either 2007 or 2008.

That means if you earned too much in 2007, but your situation changed in 2008—say, you were laid off from your high-paying job—you could receive a recovery credit when you file your taxes next year. OK, so a lot of us don’t make that much money anyway. But there’s another way to benefit. Maybe you got the standard $600 check this summer, but had a baby this fall. That means you should be eligible for a $300 child credit next year based on your expanded family.

Whatever your personal situation, the news couldn’t come at a better time for the economy. Since January, 1.2 million more people left the job market—most of them laid off. We’re at a 6.5% unemployment rate right now, and could hit 8% by the end of 2009—the highest since 1982.

Even if you don’t stand to gain from the rebates, there still might be a check somewhere with your name on it. The IRS has 279,000 unclaimed stimulus checks adding up to a cool $163 million. Some were deposited into the wrong account, thanks to IRS error (wouldn’t it be great if the IRS got dinged for every mistake they made, like we do?) or an incorrect address. If you haven’t seen your check yet, you have until Nov. 28 to visit the IRS Web site and make sure your address is up-to-date. Or maybe you didn’t file because you didn’t make enough money, but failed to realize you must file to qualify for a check. If so, contact the IRS before it’s too late!

Of course, before you start drooling over the thought of that fat government check you’re still owed, keep in mind that—once in your hands—it goes fast. Gas, groceries, bills—sometimes it seems like the more you make, the more you spend. And that’s exactly what the government wants you to do, because it feeds the economy. But there’s a better way to hang onto that money. Feed yourself first. Put it towards paying down your debt. It might seem like you’re only making a small dent, but when you reduce your debt, you also reduce the interest you pay on it—so you get more bang for your buck in the end. Need advice on managing your debt? DebtStoppers is here to guide you.

It was too much credit that got us into this mess. Let’s start digging our way back out.

Have you ever gone shopping with a little kid, only to find they throw the most expensive T.P. in the cart because the package features a really cute puppy? Has your mouth ever started watering watching those plump, juicy oranges in the Sunkist commercials, only to result in you picking up the priciest O.J. next time you hit the store?

Sometimes I think we’re all brainwashed by the advertising machine (myself included). We get some catchy jingle stuck in our head, and before we know it, we’re plucking that same product off the shelves.

But we pay a premium for buying name-brand. Yes, it looks pretty on the package and in the TV spot, but on your grocery bill? Not so much. With most Americans scrimping and cutting coupons to put food on the table right now, sneaking some no-name brands onto the grocery list is a sure way to shave money off your bill. And as national chains like Safeway and Target expand their own brands, there are more generic options on the shelves than ever before. Since I started weaning myself off name-brands, I’ve personally saved at least 30% on groceries.

Now, I’m not asking you to give up name prescription meds or buy expired meat or anything. But if you’re a sucker for brand recognition, here are some ways to ease your way into the cheaper side of the spectrum.

Cereal
Hmmm…have you ever noticed that Cheerios look exactly the same as Toasty-O’s? Check the back of the box and you’ll see the ingredients are the same as well. The only difference? Well, other than the fact that your kids don’t want to be caught dead with Toasty-Os in their house (heck, they’d probably rather have Lucky Charms or Count Chocula or some other sugar-drenched incarnation, anyway). Toasty-Os (or whatever your store’s brand is called) costs 50% less! So if you go through a box of cereal a week, you could save over $100 a year. Small, but it adds up.

OTC Meds
Federal law mandates that the same ingredients that go into Advil must also go into your store’s brand of ibuprofen. But thanks to its famous name and fancy box, Advil commands double the price (enough to give you a headache!). Generic drugs aren’t cheaper because they are low-quality, they’re cheaper because (1) the companies don’t have to spend money developing the drug, just copying it, and (2) they don’t waste funds on advertising.

Paper, plastic, etc.
Do you really care what the packaging of your toilet paper, tissue paper, paper towels, paper plates, plastic wrap, wax paper, aluminum wrap, etc. looks like? I didn’t think so. It all works about the same anyway.

Pantry items
Sugar is sugar and flour is flour, whether or not they come from C&H and Gold Medal. And I’ll let you in on a little secret. Where do you think those generic brands come from? There’s no way Safeway can afford to have a factory for every single product they make. So they often share factory space with a company that specializes in each particular product. Meaning the famous and generic brands of sugar sitting side by side sometimes come from the same place and are made by the same people. That pretty box doesn’t seem as special now, does it?

Of course, there are always exceptions. If the generic tissue paper scratches your nose, a few bucks saved might not be worth the discomfort in cold season. If store-brand detergent makes your allergies act up, don’t bother. But don’t buy a certain brand just because the TV says you should!

Now, if you’re already shopping as frugally as it gets and you’re still having trouble putting dinner on the table, you might need to take more drastic measures. DebtStoppers offers a free one-on-one debt analysis—a full hour with a debt relief pro. At no cost to your family, it's might be your best bargain yet.

Time for true confessions: I used to be a Shopaholic. I used to go out every single weekday, regardless of the weather conditions, from early morning until my kids came home from school. By 8:00 a.m., I would be sitting inside my car munching on a Sausage McMuffin in the parking lot of my (first) target destination, namely, Target, waiting for the manager to unlock the doors. I’d cruise around the store for an hour, filling my wagon up, and then head out to a mall or an outlet center (since they opened up at 10:00, I didn’t want to waste any time). And it didn’t matter to me how far I needed to drive to satisfy my shopping craving, though I did give myself an hour’s drive limitation. You can get pretty darn far in an hour, I found.

By the time I was headed home for the day, the back of my car would be packed with bags and boxes and booty – all of them “bargains” – because I only bought on sale, and generally I never spent more than about $50 a day. (In retrospect, YIKES!) I was pretty proud of my bargain shopping prowess, but the only person I could ever compare notes with was my Mom (a.k.a. über shopper). My husband, well, he just didn’t understand about my shopping “needs.”

So, I hid my purchases. I packed them away in boxes and bags, in the basement and in the attic, or high on a shelf in the back spare bedroom. Then, from time to time, I’d bring out one or two things. I’d take the tags off and wash it, so it didn’t have that “new” look anymore. Then when hubby commented on it, I could say (almost truthfully), “What, that old thing?”

Looking back on those days, I realize, I had a serious problem. I was shopping like there was no tomorrow and I hiding stuff from my husband – and not just the actual purchases, but even the store receipts, credit card statements and even my ATM receipts. After I’d mailed in the monthly payment, I’d drop them into the shredder. Accidentally, of course. Oops!

Eventually, though, hubby caught on, because he went to withdraw money from an ATM, but I had already spent it all. Snagged. When he confronted me, naturally, my hackles went up and I was put on the defensive. But, really, I had no defense. I was in the wrong, and I knew it (otherwise I wouldn’t have been hiding those purchases). So, I admitted my guilt and took the pledge: I promised to make no new purchases, irrespective of the great deal I could get.

We (meaning I) had to learn to live within my means. Granted, I had been making the credit card payments (minimum payment only, though) and I kept them current, but I was never actually paying them down. By taking the no new purchase pledge, I actually saw my principal balance going down for a change.

Giving shopping cold turkey is not fun; I definitely went through some serious withdrawal symptoms. What helped me was that I relinquished all of my plastic to my husband. Instead of using credit cards and making ATM withdrawals to fund my purchases, I had a household allowance and I accepted its limitations.

It wasn’t always easy, but I found that I didn’t miss the whirlwind shopping trips so much as I missed my thrice-weekly Cinnabon fix. And I was proud that I was able to take that allowance and really make the most out of it. I looked at it as a challenge (and I do love a challenge) – because if I could make all of my necessary household purchases with the allotted allowance and if I still had money left over, then that money was mine! I was able to indulge in cinnamon and sugar bliss at least once in a while. Come on, a girl can only give up so much! Right?

Now, this is only my debt story and how we, my husband and I, made it work. It was a slow and sometimes painful process, but I’m happy to say that we’re now debt-free. But not everyone can do it our way. Bear in mind, my story is almost a decade old, from back when the economy wasn’t quite so bad, and what worked for me might not work for you. Sometimes, relinquishing credit cards and working within a budget just isn’t enough. If it’s not enough for you, there is help, and it’s only a phone call or a mouse click away – DebtStoppers. That’s what we’re here for.

I tend to trawl a lot of online forums; they run the gamut from health related to shopping to cooking to parenting tips. One thing I have noticed over the past couple of months is that people everywhere are looking for extra cash to supplement their incomes, and they are turning to their peers for ideas. Without fail, the word “sell” comes up… sell your second car, sell your gun collection, sell your stuff.

Take a good hard look at all of the stuff around you. If you’re the “average” American, you’ve probably got a television in every room, game consoles of all kinds (from Atari right on through Nintendo Wii), toys the kids have outgrown, exercise equipment, electronics galore and gadgets and gizmos of all kinds. And let’s not forget collectibles – including sports memorabilia, autographs, stamps, clocks, and the ubiquitous china pig collection.

Let’s be honest with ourselves; those are the things, the stuff, which put you into debt in the first place. In the past, it’s been our collective goal to not only to keep up with the Joneses, but to have more and better stuff than they have.

You may have thought you needed all of these things, at one time, but no doubt, you now recognize that there are other needs, infinitely more important needs, like food, gas, clothing and shelter. Now that you realize what is important and what is not, you’ve likely put the brakes on your extraneous spending, buying nothing unless it is an absolute necessity. But what if your no-new-debt philosophy is not enough to stop the depreciation of the funds in your budget or bank account? What if you still don’t have enough to make ends meet?

Then, it’s time to look around you and make some tough decisions, i.e. what goes and what stays.

If you’re lucky (and anything at all like my mother, the über-shopper cum hoarder), some of the stuff you’ve got stuff stashed away is still in its original bag or box (stashed or hidden in the back of a closet somewhere) and you’ve got the receipt. Good. Now, return it. If it’s long past the store’s policy to accept returns, ditch the receipt and tell them you got it as a gift. Yes, it’s a little white lie, but it’s for a good cause.

As for the rest of your stuff, especially those that are not only collecting dust, but for which you’re still making payments, here are three simple words: Sell, baby, sell.

In the old days, your only option for selling your stuff was a garage or yard sale. Yes, that could be a quick fix, but it doesn’t play to your financial advantage – it just clears up some clutter. It’s been my personal experience that people will nickel and dime you to death at a yard sale – you put a sign out that everything on a specific table is a buck, and you’ve got people offering you 10 cents. And they’re offended when you say no. These are the people who tend to come back at the end of the day in the hope that you’re desperate to unload, and if you are, you’ll settle for that measly dime.

Online auctions are the answer to a compulsive shopper’s prayers. You have a chance to unload that booty, perhaps make a profit, but at the least, pull in a little spare cash. If you do it right. The E-Commerce market is tremendous; eBay alone traded more than $60 billion worth of “stuff” last year. And there are other smaller markets that you can look at, including Amazon Marketplace and Overstock auctions.

Before you list any item for sale, do your homework. Know what its worth in the market, not just the “blue book” value (or whatever book you consult). Understand how the auction site works, who their audience is, and what their fees are. There are dozens of online primers, guides and e-books that can help you start.

If you have sold all you could possibly sell and didn’t make quite the amount of money you’d hoped for or if you’re one those individuals who can’t bear to part with your beloved collection of hand-painted china pigs, you do have an alternative. Let DebtStoppers attorneys show you the other way. With our help, you get to keep the stuff you prize and still find the extra money for the important things that you really need.

Last weekend, I had the experience of watching people light their money on fire and let it burn to ashes in an effort to get rich. Sounds crazy, huh?

OK, I admit I’m exaggerating. They weren’t exactly holding flaming dollar bills. But they were doing pretty much the equivalent. You see, I was staying in a hotel with a casino last weekend, and I was practically required to walk through the gambling floor every time I left my room. And, let me tell you, that casino was a full house.

I swear, every seat was taken—slots, tables, you name it. And everyone was dropping bills like they were monopoly money. Sitting at a cafe, I watched an elderly couple feeding crisp $100 bill after $100 bill into side by side slots for maybe a half hour. They probably dropped $500—I hoped it wasn’t out of their retirement fund.

It didn’t make sense at first. With vultures practically circling our ailing economy, why were people throwing more of their paychecks away? Doesn’t everyone know the house always wins? But later that day, it happened. I caved (it was peer pressure, I tell you—my friends were egging me on!) and I put $10 in a machine. Small change, I figured, and what if I win the $10,000 jackpot! I didn’t. Rather than walk away, I put more in because I felt guilty—and a little desperate—about wasting the first bill. Man, once that $30 was gone, I had to drag myself away because the urge to get it back (or get more) was so strong. All of a sudden I knew why all those people were there.

Humans (even normally rational, intelligent ones) are always drawn to the idea of a quick fix. Maybe that’s why some say gambling is recession-proof. Digging yourself out of debt is a lot of work. Wouldn’t it solve all your problems if somebody just handed you a fortune? The reality is that, unless you can count cards (illegal, by the way), you are not going home rich. Very few people win big and most of those are compulsive gamblers who’ve spent way more than they got back over the years. And as for those lotto tickets you buy every week? The odds are stacked at least a million to one against you.

After I got over my initial shame at wasting money, I had a thought. Watching your budget is like being on a diet. Not a fad diet, where you eat only cabbage and orange juice or whatever, but a healthy, well-balanced diet. And when you eat a slice of cake, you shouldn’t feel so bad that you binge and eat the rest of the cake, too. Just pick yourself up and get back on track. Learn from your mistakes and do better.

Of course, I realize it’s not always that easy. If you think you have a gambling addiction, don’t hesitate to get help. But if can’t pull yourself away from the slots or the Super Lotto because you think it’s your only shot at paying the bills, it might also be that you have too much debt. To find out, contact a DebtStoppers attorney to take advantage of our free, personalized debt analysis. Because you shouldn’t have to bet on your future.

Two days post-election and it appears that we may, finally, be able to get back to normal. Whether your candidate was the winner or the loser, your emotions are probably still running high – euphoria or disgust – but that should eventually subside. It’s significant that so many Americans took part in the election process. In record numbers across the country, voters made their collective voices heard; while “official” numbers are still being tallied, it looks to be the highest turnout in a presidential election in nearly a century. We all knew that history would be made, one way or another, and so it has.

One thing is certain, we are all breathing a sigh of relief that the election is over. We can all be thankful that we can enjoy sitting down to dinner without being interrupted by robocalls (which were not particularly popular, even if they were from your party) and settling in to watch Prison Break or House without fear that our favorite program is being preempted for a 30 minute television commercial from one of the candidates. In short, we can get back to our everyday lives, such as they were.

Now, for better or worse, President-elect Obama is doing the very thing that many of us also need to do. He’s putting his house (in this case, the White House) in order, by reaching out for help, and aligning himself with the people (Democrats and Republicans alike) who can help him successfully accomplish the monumental tasks placed before him. Let’s be honest about something, though. It would be unrealistic to presume that the incoming president can make any significant headway in a short time. Even Mr. Obama acknowledges that it may take as long as a year, or even a whole term, to achieve his objectives.

Naturally, we are all hopeful that help will be forthcoming, but really, who can say when, given the enormity of the problems that face America?

Unfortunately, individuals deluged by mounting debt and threatened with the prospect of foreclosure can no longer wait. Losing sleep over the outcome of an election is bad; losing sleep over concerns about your personal finances is far worse. Elections end, but worries about your own future may seem endless.

For individuals in desperate, urgent, need of help in getting their own financial house in order, a year or a term is just too long to wait. If you need help, right now, be aware that DebtStoppers is here for you. You made your voice heard just a few days ago; it was a cry for help and for change and for hope. Make your voice heard again; just contact us, either by phone or email, and a DebtStoppers attorney will help you put your house back in order.

I’ve never had to leave a job that I didn’t want to leave, so I’m not sure if I’d do things any differently. But, whenever I left a job, I always made sure that my desk was neat, that the projects I was working on were up to date, that emergencies were handled and put to bed. I would leave sticky notes galore, so that the poor person coming in after me would have a fighting chance of getting through the first week relatively unscathed (or at least without needing therapy). Perhaps it’s because I’m the classic overachiever and over-doer, but I’ve a feeling that it’s generally not easy to fill my (big -- size 11) shoes. Above all things, my goal when I leave a job is to leave a good legacy. Not a mess.

It’s too bad that not everyone is like me. I’ll give you an example. There’s this one guy, let’s call him “W” for simplicity , who’s got this really cushy job – it doesn’t pay great, but the perks and prestige are to die for – but he’s got to leave. Oh, W’s still got a couple of months before he gets the boot; until January 20th 2009, to be exact. But what he is leaving for the poor sucker who gets hired (and believe it or not, there are these two guys who are both desperately fighting for this position) is nothing short of a mess.

Now, I’m not sure why these guys want the job, because it’s a seriously dirty job. It calls for a person rolling up his sleeves and cleaning up all of the mess left behind. And it’s a bit more than just a disorganized desk and missing files. Unfortunately, “W” never bothered to clean up after himself from earlier emergencies… there are still debris left behind from 9/11, the war in Iraq, and Hurricane Katrina. And over the last couple of months, he really piled on the crap from the Wall Street disaster that he created. For appearances sake, W and his “expert” cleaning crew tried to clean Wall Street, but they only cared about their little block. For the rest of us, who lived elsewhere, the message was clear: “Tough – here’s a shovel.”

Unfortunately, it’s not only that poor sucker who gets the job who has to deal with the mess, because the mess has spread far and wide… you know how garbage dumps have a way of growing if you don’t contain it. You and I are also affected; some of us more than others. Consider the poor homeowner who has lost or is in the process of losing their home or having their credit limit reduced just because of the mess that W made on Wall Street.

I’ve got to be honest, I’m not sure why W got the job in the first place (and his contract was even renewed, at one point!). W definitely was not qualified for this particular job. Now, a used car salesman, that’s probably a better fit for his unique qualifications (fake good ol’ boy accent, funny clothes, forked tongue).

I don’t know who is ultimately going to get his job (though, I put in a good word for one of them already), but the person who is going to take over will have to be pretty good at sorting through the garbage, understanding that he’s got to throw out all that’s bad (which is pretty much, all of it) and keep what is good (not too much, unfortunately). He should be young and tenacious and smart. And he should have a seriously strong backbone, because whatever he will have to do to clean up this mess is not going to go over well with some people. They might not like his methods, and they may not agree with his ways. And irrespective of the fact that he didn’t make this mess, he is going to be the one who bears the blame, if he can’t clean it up.

One thing is clear: We can’t continue to live like this. If you agree, that it’s time for a change, then, please, do something about it. Tomorrow. You’ll feel better once you did.

And while you’re at it, consider cleaning up of another kind – cleaning up your own financial house. Regardless of where you live, if your debt mess is more than you can clean up by yourself then consider calling in DebtStoppers. Our “professional cleaning crew” aka attorneys, can help you get your financial house looking the way that it used to. Another change you can believe in.

Could there be a bright side to this dreary financial climate? A recent consumer study seems to indicate so. While consumer confidence is plummeting, it appears that saving is on the rise.

According to a story on CNN.com, U.S. consumers are socking away 20 percent more in short-term savings and a whopping 60 percent more towards retirement. We’re also starting to pay off debt, contributing 6 percent more to our credit card bills and the like. It seems the flailing economy, for all its drawbacks, is serving as a wake-up call to Americans.

For too long, we’ve been spending money that wasn’t actually in our pockets. Hey, why worry about whether you can afford x purchase when you can simply whip out the plastic? Why save when you can just borrow against your home? But it’s finally sinking in. The only way to have the things you want in life is to save for them. It’s only too bad we had to learn the hard way.

Now, the ultimate test is whether we can keep up our newfound thriftiness. When the survey participants were asked if they would continue their savings behavior, more people said no last month than in September. But before you take that as permission to fall back into your spend-happy ways, here’s a tip.

The study also found that the people with the most confidence right now also happen to have a financial plan. Coincidence? I think not. Just knowing you have some control over your money can keep you positive. And the more optimistic you are, the more likely you are to stick to your goals.

Once you commit to starting a savings plan, it’s easy. Write down your monthly expenses and compare to your income. Your first goal: to spend less than you earn. Once you’ve got that under control, you can start identifying places to cut back (in moderation, of course—you don’t want to burn out right away). Make sure to allocate as much money as you can towards paying off debt—it will save you in the long run.

For advice on your financial plan, contact DebtStoppers for a complimentary one-on-one debt analysis. Not many things are free nowadays—take advantage of this freebie while you can.