Chicago Bankruptcy Lawyer Blog

You know you need to keep an eye on how much money you're spending, but it's also important to check up on what you've spent. Why? Because those numbers might not add up.

Recently the Federal Trade Commission disrupted a massive credit card scam that allowed a ring of criminals to steal millions of dollars from right under the noses of millions of unsuspecting consumers for four years. The thievery might have ended sooner, except for the fact that most victims didn't even realize they were losing money. That's because the scammers were stealing it pennies at a time.

25 cents here and 50 cents there might not seem like much, but when too much debt has you struggling to make ends meet and living paycheck to paycheck, you shouldn't have to give up a cent of your hard-earned dollars.

Continue reading "Why Chicago Credit Card Users Should Keep Close Tabs on Credit Statements" »

I love summer - that is, until I get my first big air conditioning bill of the season.

Cooling and heating costs account for more than half of a typical utility bill, according to the U.S. Department of Energy. If you can reduce your need for artificial temperature, think of the savings you can reap.

Don't worry, I'm not going to suggest that you go cold turkey and spend all summer sans cool air, especially if you live in a hot, humid climate. But by making a few small changes now, you could be sweating a lot less when you open your next bill, according to Chicago bankruptcy lawyers. And that's pretty important for those of us already dealing with debt and other financial obligations.

Continue reading "Cool Tips for Reducing Summer Air Conditioning Costs in Chicago" »

As banks pile on the account fees and other inconveniences, customers are starting to shop around. But to get the best banking bang for your buck, you need to be able to weigh all the options - and that means including credit unions.

Consumers often overlook credit unions because they assume they won't qualify for membership, according to Chicago bankruptcy attorneys. But many unions have been opening their doors to the general public, meaning you might be eligible for their notoriously lower rate credit cards and car loans. Hey, when you're struggling to manage bills and debt, a more affordable interest rate goes a long way.

Continue reading "Compare Banks and Credit Unions to Make the Most of Your Money" »

It's the ultimate reality check: thanks to the Credit Card Accountability Responsibility and Disclosure Act - or Credit CARD Act -we're forced to confront our debt problem every time we open our credit card statement. New rules require creditors to illustrate how long paying off our debt will take if we send only the minimum payment in each month.

If you have indeed been relying on minimum payments, seeing those numbers can be a real shock - sometimes enough to send you into denial. After all, when you realize your current credit habits will keep you in debt for decades - in some cases, forever - you might feel like, what's the point in trying? But you've got to remember that what your statement is showing you isn't necessarily a glimpse into your future. Instead, it's a reminder that you can change your future - and your debt.

Continue reading "Minimum Payments Cause Maximum Debt for Chicago Consumers" »

"Sure, I'll start investing for the future - in a couple years, when I'm making more money." Sound familiar?

It's a common excuse. We've all got credit card bills, a rent or mortgage payment to manage and gas and groceries to buy, so it's easy to put off starting a savings plan until we get a little more financial breathing room. But here's the problem, say Chicago bankruptcy attorneys. When we finally do get that raise, we find new reasons to spend money - gas goes up, our credit card debt increases and somehow that breathing room never materializes.

So what's the solution? Instead of looking at saving as something you'll get to after the bills are paid, look at it as just another bill - a bill that pays off.

Continue reading "Chicago Residents Can Build Cash Cushion By Making Saving An Obligation" »

Uncle Sam is really laying into credit card companies lately - and I'm not complaining.

On Tuesday, just months after the latest Credit CARD Act rules went into effect, the Federal Reserve adopted a new set of credit card laws. This time, they're limiting late fees to $25 (instead of the $30-plus penalties many of us are accustomed to paying) and banning banks from charging a fee higher than the violation with which it's associated. They'll also put a stop to inactivity fees - in other words, charges for not spending money with your card - and multiple fees for the same violation.

But here's what the new credit card rules - which go into effect this August - won't do.

Continue reading "Chicago Credit Card Holders Can Benefit From New Late Fee Rules" »

Is too much debt making it difficult to afford your rent? Or maybe you're looking for a bigger place - but without the bigger price? You may still be able to take advantage of the current renter's market before it disappears.

Recently, renters have gained major negotiating power, say Chicago bankruptcy attorneys. Younger people are increasingly opting - or forced - to rent instead of buy. Kids who moved back in with their parents and renters who added roommates to help cover their lease are finally looking to move back out on their own. Eventually, we could end up with a rental shortage. But in the near future, a lot of vacant apartments and potential tenants might mean a chance for you to lower your rent.

Continue reading "Negotiate a Lower Rent and Save Up for Buying a House" »

No news is good news - especially when it comes to the recent rate of foreclosures.

After a sharp rise in foreclosures during the recession, the number of folks facing home loss remains unchanged from last year. Furthermore, one-third fewer homeowners are receiving those dreaded foreclosure warnings, according to the Associated Press.

But don't breathe a sigh of relief just yet - especially if you're dealing with too much credit card debt or other financial strains that affect your ability to pay the mortgage.

Continue reading "Foreclosures Stop Increasing, But Some Chicago Homeowners Still At Risk" »

With millions of Americans recovering from personal debts and the recent credit crunch, it's no surprise that paying with credit cards has fallen out of favor.

But is paper money really superior to plastic, or vice versa? In short, it depends on the person, say Chicago bankruptcy attorneys.

Finances are highly personal. While one shopper might need to physically part with their money in order to take a purchase seriously, another might find cash all too easy to spend because it doesn't come with an automatic money trail to hold them accountable.

Continue reading "Chicago Shoppers Should Weigh Pros and Cons of Spending With Cash and Credit" »

For the millions of Americans stuck with large debts, news that the economy is rebounding might as well be falling on deaf ears.

Almost half the people in a recent Associated Press poll reported that they suffer from debt-related stress. While many folks have used the recession to increase savings and tighten up their budgets, the weight of debt still hangs heavy on their shoulders, according to Chicago bankruptcy attorneys.

But when tightening up our belts isn't enough to eliminate debt, bankruptcy can provide the final push.

Continue reading "Bankruptcy Can Ease Stress Caused by Nagging Debt Burden" »

Have you ever gone to the store to pick up some bread or run into Target for paper towels - only to come away with a cart full of purchases and a $100-plus receipt?

You're not the only one. Stores rely on a few tricks to distract consumers from saving money and instead lure them into spending it, explain Chicago bankruptcy attorneys. Fortunately, once you know what to look out for, keeping your wits - and your cash - can be a piece of cake.

Continue reading "Watch Out for Store Tactics Meant to Lure Chicago Shoppers into Overspending" »

If you've got too many debts to keep track of, consolidating them into one big bill makes sense, right?

In theory, yes. Reality, however, is another story.

If you're like most folks, you've probably heard debt consolidation companies claim they can lend you money to pay off your debts at a lower interest rate. But what you're hearing is only half the story. That's because a debt relief company that wants your business isn't going to tell you the truth - that signing up for their services can actually leave you in more debt than before.

Continue reading "Debt Consolidation Scams Can Actually Keep Chicago Consumers in Debt" »

You know you're not supposed to exceed your credit card limit, but did you know that just getting close can hurt your credit score?

Every month that you carry a high balance on one of your credit accounts, you look like a risk to lenders - even if you eventually pay that balance off in full, say Chicago bankruptcy attorneys. The good news is, the damage is only temporary, assuming you maintain good credit habits like paying your bill on time and not actually going over your limit. The bad news is, it can really hurt you if you ring up that large balance at the wrong time.

Continue reading "How Having a High Credit Card Balance Can Hurt Your Credit Score" »