Chicago Bankruptcy Lawyer Blog

Americans spent more - but earned less - in January, say Chicago bankruptcy attorneys.

Personal spending was up 0.5 percent in the first month of 2010, according to The Commerce Department. That would seem to bode well for economic recovery, except that incomes in January rose by just 0.1 percent, much less than what economists had predicted - and the worst rate in four months.

There's good and bad news. First, the bad. As a result of more spending and less money, the savings rate has dropped. Last year Americans saved 4.3 of our incomes - the highest rate in over 10 years - but in January we only saved 3.3 percent. We might be spending more now, but without raises (and in some cases, jobs) we could eventually run out of steam, stifling economic recovery. But here's the happy news. Our savings rate is still a huge improvement over the negative rate we had before the Great Recession. And hopefully we can keep it up by slowing our spending to match our incomes.

I know it's not easy, especially when the recession - and the threat of layoffs and foreclosure - drags on. But there are ways to make saving money a little easier.

Continue reading "Chicago Bankruptcy Attorneys Say Americans Spend More But Earn Less" »

It's no secret that recently enacted rules could make having a credit card easier. But while creditors must now limit when they can levy fees, raise interest or even send out a bill, your credit score is still ultimately in your hands, say Chicago bankruptcy attorneys.

The last of President Obama's credit reform measures went into effect Monday. And here's some of the good news.

• Your creditor can no longer raise the rate on an existing balance - assuming you make your payments on time - so if you normally pay 14% on a $10,000 debt, you don't have to worry about suddenly paying 24%.
• Creditors can no longer charge you for exceeding your credit limit, unless you opt in for this service.
• Creditors must give 45 days notice before making certain changes to your account, like raising rates or fees
• You must receive your bill 21 days before it's due
• If you have multiple lines of credit with different interest rates on a single card - for instance, one for cash advance and another for purchases - creditors must apply any payment over the minimum to the balance with the highest interest rate (instead of the lowest rate, as they used to do).

Now here's the catch - and how you can make it easier on yourself.

Continue reading "Chicago Bankruptcy Attorneys Analyze New Credit Card Reform Laws" »

Remember cash for clunkers? Well, how about rebates for refrigerators?

Uncle Sam has $300 million in stimulus money, and he wants you to buy a new fridge - or washer, dryer or HVAC, according to Chicago bankruptcy attorneys. The point, of course, is to encourage consumers to start spending - but also to replace old, outdated appliances with new, energy-efficient ones. Modern washing machines, for instance, use about half the water as their older counterparts. They also squeeze out more water during the spin cycle, meaning you'll need less energy to dry your clothes as well.

If you're in the market for new appliances, this might be the time to do it. However, it's important to weigh the pros and cons of the rebate program - especially if you're already struggling to make ends meet without a new fridge to pay for.

Continue reading "Chicago Bankruptcy Attorneys See Pros and Cons to Cash for Appliances Program" »

Love is supposed to be in the air, but it can be hard to feel positive when your bank account is, well, negative.

But whether you think of Valentine's Day as the most romantic day of the year or just another excuse to spend money cooked up by card companies, you can make the most of the holiday without going broke - even if you're in debt, according to Chicago bankruptcy attorneys.

Continue reading "Show Your Bank Account Some Love This Valentine's Day, Say Chicago Bankruptcy Attorneys" »

Ever try to fix a bad day with retail therapy? I know I have.

Sometimes it's all too tempting to drown out nagging worries or unhappy experiences by trekking to the mall for something bright, shiny and new. And to some extent, it works - if you make sure to keep your purchases realistic and within your budget, say Chicago bankruptcy attorneys.

Problem is, when we're not feeling our best our judgment can get clouded, making it harder to stick to everyday limits. Have you heard of emotional eating? Well, this is emotional spending. And it can add up - especially if you're already in debt. Though it's no simple task to stop something you do unconsciously, you can change your behavior fairly easily before it happens by identifying - and learning to avoid - certain triggers.

Continue reading "Chicago Bankruptcy Attorneys Offer Tips to Curb Emotional Spending" »

Do you ever get the feeling that you're eating up your paycheck faster than you can spend it? You're not just imagining things, according to Chicago bankruptcy attorneys.

Prices of grocery items like bread, milk and meat are rising faster than most salaries. The average American family of four spends about $600 a month on groceries -- or about $7200 annually. If you make $40,000, it's like you're devouring one-fifth of your paycheck - probably closer to one-quarter if you count all those restaurant meals.

Food obviously isn't something you can cut out of your budget, but that doesn't mean you can't save money on groceries. The kind of food you buy, when you buy it and where you buy it can potentially save you thousands of dollars a year and even improve your health, which could in turn lower your medical bills.

Continue reading "Chicago Bankruptcy Attorneys Tips for Saving Money on Grocery Shopping" »

It's bad enough that we have to deal with pushy retailers and their promotions when we go to the mall, but now they're following us into our home, say Chicago bankruptcy attorneys.

When you fill out online surveys, enter drawings at stores or even use your credit card to pay, you're giving retailers access to your personal information. Next thing you know, your mailbox is filled with catalogs and your inbox with ads, and the phone is ringing off the hook with store employees who want to tell you about their next big sale. Ever visited eBay or Amazon and saw a homepage filled with a bunch of stuff you like? It's no coincidence - those picks are just for you, based on what you've been viewing online.

That's fine if you have all the money in the world and don't mind the harassment. But for the large majority of Americans -- many of us struggling to balance paying off debts with making the mortgage - it's just another obstacle to financial freedom.

Continue reading "Chicago Bankruptcy Attorneys Say Protect Privacy to Stop Harassment and Save Money" »

Saving money often presents a problem. You know you need to start saving, but you can spare so little thanks to your debt, you figure why even bother.

Well, I'm going to let you in on a secret: every little bit counts. It's better to save one dollar than to save no dollars at all. And if that one dollar is what it takes to get the ball rolling on your fresh financial start, then it's worth a lot more than its paper value.

Most folks tell themselves saving would be easier if they just made a little more money. But chances are when you finally get that much-needed raise, you'll quickly find other uses - and excuses - for your cash. However, if you can set aside just a couple bucks each month starting now, you'll kickstart a habit that can last you a lifetime, no matter how much you get in your paychecks.

Continue reading "Change Your Financial Mindset to Start Saving Money" »

We all know it's the thought that will count when we rip off the wrapping paper tomorrow. But that doesn't change the fact that some presents just aren't the right fit (sometimes literally).

With money tight, I don't think it's selfish to admit that we want to make every gift count - especially when we've shelled out a mini-fortune to buy presents for friends, family and co-workers. Fortunately, the same economy that is making our wallets thinner might be making it easier than ever to return or exchange gifts post-holiday.

According to MSNBC.com, certain retailers are extending return deadlines and making the rules for returning items more lenient.

Continue reading "Returning Gifts Gets Easier Thanks to Recession" »

At first glance, a gift card seem like the perfect present. You don't have to worry about getting your friend or family member something she can't use - with plastic, she can buy whatever she wants. Or can she?

Research shows that, if your gift recipient procrastinates, you could be giving more holiday cheer to retailers than your loved one.

On the one hand, things might seem to be looking up. New credit card laws will also apply to gift cards, limiting fees that can be placed on cards inactive for less than a year and preventing funds from expiring on certain cards within five years. On the other hand, that only addresses one party - the gift recipient. But if the card gets lost, forgotten or otherwise goes unused, either fully or partially, where does that leave you, the gift giver, who could probably use some of that money back?

Continue reading "Gift Cards Might Be Easy Presents, But They Don't Come Cheap" »

Good news on the job front. With the economy picking up steam, employers are again warming up to the idea of raises, bonuses and 401k matches, according to USA Today.

It's a welcome change going into the new year. But it also brings up a couple good points.

First, getting a boost from your boss is not a given. As the article pointed out, 40 percent of employers said they plan to review salaries based on employee performance next year, according to a Towers Perrin survey. You might already know this, but a poor economy is no time to be slacking off. Nor is an improving economy, as businesses might be preparing to hire again - and there are plenty of experienced, educated and job-hungry candidates flooding the market.

Second, and maybe most important, a raise doesn't necessarily mean more money. As a wise old man once said, it's not the size of your wallet that counts, but the way you spend it.

Continue reading "Chicago Bankruptcy Lawyers Say Workers Could See Rise in Raises and Benefits" »

Mention holiday expenses, and most folks think of immediately of the gifts. But the little costs of Christmas cheer can add up, too.

Take the typical holiday party. I have one every year. We're not talking anything fancy or expensive - just a casual gathering of friends for appetizers, drinks and Christmas movies - and yet, for many years, the cost of my simple gatherings was the last straw for my wallet. Between the groceries and festive decorations, it would push me over the line from simply scrounging to flat-out broke.

The problem was, I overdid it. Because I was focusing my budget restraint on the obvious - gift shopping - I wasn't paying attention to the smaller stuff like the food I was impulsively tossing into my cart at the store or the Christmas plates I bought off the sale rack or that cute pair of shoes I had to buy to go with that cute outfit I might wear at the party, and so on. It's hard to stay in control when you're being tempted by sales and discounts, pretty displays, tasty-looking treats and ads on TV, billboards and even shopping carts.

But use a few of the following tips to stick to your budget the same way you (hopefully) do the other eleven months out of the year and you'll be financially rewarded when the new year rolls around.

Continue reading "How to Have an Affordable Christmas Party" »

Old-fashioned coupons are going high-tech.

With folks looking for ways to stretch their budgets this holiday season, millions of consumers who once scoffed at the idea of penny-pinching are turning to coupons. But rather than clipping them from magazines or packages the way Grandma used to do, they're going online.

Many coupon providers saw record traffic during this week's Cyber Monday, now considered the biggest online shopping day of the year. For instance, RetailMeNot saw 1.1 million shoppers - a surge of 57% over last year while CouponCabin visitors edged 65% higher, according to USA Today. The article also noted that over 20% more shoppers are printing online coupons this season than last year.

But as with any sale, it only pays off under the right circumstances.

Continue reading "Holiday Shoppers Going Online to Find Deals" »

Pumpkin pies might be in the oven and football on the TVs, but there's something else on the minds of most Americans today - shopping strategies for the infamous Black Friday.

I know, it's old news that Black Friday is the biggest shopping day of the year. But there's a new twist on the tradition - almost half of sales this year might actually take place online.

With most of us living paycheck to paycheck already, we don't have a lot of wiggle room when it comes to our holiday budgets. And the Internet offers unlimited access to sales and clearances and a great way to compare prices, helping us save time as well as money. Unlike store shopping, online shopping allows you to look specifically for what you want without getting sidetracked by fancy displays or pushy sales clerks. And maybe best of all, you don't have to freeze your butt off standing in lines at the crack of dawn.

But as always, there's a catch. This time, it's online shopping scams.

Continue reading "Watch Out for Holiday Shopping Scams" »

Most credit card companies don't give you a choice when it comes to raising your rate, but at least one company is willing to strike a deal with you. Whether it's worth it, well, that's for you to decide.

Citibank, like many credit providers, is hiking its interest rates. But the company is giving a rebate to customers who spend enough money on their card - up to $750 a month, according to USA Today. How much you'll need to spend depends on your credit history, and you'll have to make payments on time to qualify, but if you follow all their guidelines you could erase some or all of their rate increases. If the program works, expect other creditors to follow suit.

Now, if you're already spending the minimum amount, the program's benefits might seem like a no-brainer. For making no changes whatsoever, you avoid the new rates (though you could probably save more money by simply cutting back on your credit card usage - but we'll get to that in just a minute).

Continue reading "Credit Card Company Asks Customers to Spend Money to Save Money" »