Chicago Bankruptcy Lawyer Blog

Consumer spending in February increased at the quickest rate in four months, the first time the economy has showed signs of life in some time. But as it turns out, most of the spending was on one thing - gas.

With gas prices hitting new highs of $4 a gallon in some cities, economic indicators might be a bit skewed, point out Chicago bankruptcy attorneys. And things were just starting to look up - last quarter saw the highest spending growth in years, at about 4 percent. Now economists say that thanks to rising fuel costs, that number could drop by half for the first few months of 2011. So what's a struggling consumer to do?

Continue reading "Chicago Consumer Spending Is On the Rise - Or Is It?" »

When the bills pile up and the budget is stretched tight, cutting back on shopping sprees seems like the rational thing to do. But for emotional spenders, it's not so easy.

Debt causes emotional discomfort - no argument there. For many of us, that stress becomes a great motivator for finally getting our finances under control, whether it's by reworking our budget, making more than our minimum monthly payment, or seeking help from a Chicago bankruptcy attorney. But a portion of the population deals with financial stress a little differently - by doing more spending.

Similar to the way someone on a diet might go on an eating binge after falling off the wagon, some consumers deal with money problems by splurging on clothing, shoes, makeup, electronic gadgets, you name it, without so much as glancing at the price tag. Sometimes binge shoppers end up returning most or all of their loot - but there are still consequences.

Continue reading "When Financial Stress Causes Chicago Shoppers To Overspend" »

If your grocery receipts have you doing double-takes lately, you're not alone - those higher prices aren't just in your head.

Food prices - along with gas and many other necessities - are going up, much like they did back in 2008. While we can cut back on fuel costs by driving less and adjusting the thermostat, we can't exactly stop eating. But when you can't buy less, you can still buy smarter, say Chicago bankruptcy attorneys. If you want to win in the supermarket battle, you need a good offensive and defensive shopping strategy.

Continue reading "Ways Chicago Consumers Are Fighting Rising Food Prices" »

More than two months after Americans got a small paycheck boost courtesy of Uncle Sam, the verdict is in: it's not working.

The goal of rolling back Social Security payroll taxes by 2 percent was to encourage consumers to spend more, thus stimulating the economy. But with the cost of living rising faster than expected and people preparing to pay income taxes, folks are actually spending less, say Chicago bankruptcy attorneys.

Continue reading "Rising Costs of Food and Gas Affecting Payroll Tax Cut" »

Some things are easier said than done - and it looks like that might be the case when it comes to retaining the smart saving and spending behavior so many Americans adopted in response to the recession.

Last year, 63% of consumers said they had modified their money habits because of the economy, according to a poll by Citigroup. Just one year later, that number has dropped to 52%. Incomes are on the rise once again, and apparently so is consumer debt - one of the problems that led to our economic troubles in the first place. Could budgeting and avoiding debt end up like the majority of New Year's resolutions - out of sight, out of mind? That depends, say Chicago bankruptcy attorneys.

Continue reading "Will Americans Keep Frugal Habits or Fall Back in Debt When Economy Rebounds?" »

You might think making more phone calls would cost you more money - at least on your phone bill. But placing a few selective calls can actually help your finances, say Chicago bankruptcy attorneys.

Though they might not mention it, many common service providers are willing to negotiate a price - especially in today's economy. According to Yahoo Finance, consumers can save on everything from utilities to Internet service to that telephone bill by simply picking up the phone. Here's how it works.

Continue reading "Chicago Consumers Save Money With Phone Negotiations" »

It looks like taxpayers might already have a use for that extra money from President Obama's payroll tax cut - filling up the gas tank.

Legislators hoped that the tax cut - which gives many Americans the equivalent of a 2 percent raise by shaving the amount of paycheck withholdings for Social Security from 6.2 to 4.2 percent - would boost the economy. But with today's gas prices almost 40 cents higher per gallon than they were a year ago, it looks like the savings will be boosting the bottom line of oil companies instead, say Chicago bankruptcy attorneys.

Continue reading "Rising Gas Prices Put Financial Burden on Struggling Consumers" »

You can combat rising gas prices by carpooling, and you can counteract an expensive mortgage payment by downsizing to a smaller place. But you can't exactly fight rising food prices by not eating.

No, when the price of milk, produce, and coffee goes up due to weather and high fuel prices, we have to suck it up and pay more at the grocery store. A bigger price tag is never fun, but for the many Americans already on a tight budget because of growing debt, it can feel like the last straw. But there's good news - we still have some say over our supermarket bill, say Chicago bankruptcy attorneys.

Continue reading "How Chicago Consumers Can Fight Rising Food Prices" »

What if you could stretch the Christmas magic beyond December 25? It's possible with gift cards.

Not that gift cards are anything new, of course. Americans requested plastic cards more than any other present this year, according to the National Retail Federation. Not surprisingly, when money is tight, most of us would rather have the ability to choose gifts we actually need rather than receive things we may have no use for. But you can get more bang for your buck by using those gift cards strategically, according to Chicago bankruptcy attorneys.

Continue reading "How Chicago Residents Can Improve Finances With Gift Cards This Christmas " »

We're struggling to scrape together the funds to pay the mortgage, buy groceries and put gas in our tank - so why are so many of us spending money on exercise machines, household cleaners and Snuggies?

Chalk it up to the infomercial phenomenon, say Chicago bankruptcy attorneys. Sales of "As Seen On TV" products are skyrocketing just as families are cutting back everywhere else. Why? Maybe because the products are pitched as a way to buy happiness. You might not be able to afford a nice vacation or new clothes, but for three small payments of $14.95, according to infomercial hosts, you can get rock-hard abs.

Continue reading "Chicago Shoppers Falling for Infomercials Despite Debt" »

Despite the constant barrage of tempting holiday sales and specials, it looks like cash-strapped Christmas shoppers are holding their own against retailers, according to Chicago bankruptcy attorneys.

Statistics show that fewer consumers used credit cards for post-Thanksgiving shopping this year than ever before. Use of several major credit cards fell by 11 percent this season from just a year earlier. It seems that we might finally be getting the picture that this year's holiday gifts aren't worth paying for next year...and the year after that, and the year after that.

Not that retailers are going to give up without a fight.

Continue reading "Smart Chicago Shoppers Sticking To Cash Rather Than Credit This Season" »

What exactly does Christmas shopping have to do with energy efficiency? A lot, if you want to get a soon-to-expire discount on new appliances.

For the past two years, homeowners have been eligible for an energy tax credit of up to 30 percent, or $1,500, on products from biomass stoves to storm windows to gas-burning fireplaces. With most Americans still short on cash, it's been a great way to save money when upgrading old appliances, say Chicago bankruptcy attorneys. But all that's coming to an end on Dec 31. In order to take advantage of the discount, you need to have the energy-saving device installed and ready to use by that date.

Continue reading "How Chicago Shoppers Can Save Money on New Appliances This Month " »

Ultimately the holiday season is just one big juggling act. We strive to find a balance between work and home, between friends and family and - maybe most importantly this year - between spending and saving money.

Fortunately there are simple ways to counteract all that spending we seem to be doing, say Chicago bankruptcy attorneys. And if you can find a way to limit your purchases this year, you won't only come out even when January rolls around - you might actually come out ahead. How? By lowering the costs of some everyday expenses.

Continue reading "Ways Chicago Consumers Can Save Money on Everyday Expenses" »

Move over Black Friday. Small Business Saturday is here. And the timing couldn't be better.

American Express is hoping to encourage shoppers to spend locally this season, starting today. In fact, the credit issuer is offering $25 in spending credit to the first 200,000 people who register American Express cards today on the Small Business Saturday website, according to Chicago bankruptcy attorneys. But before you write the whole thing off as an expensive marketing campaign, think about this - it makes financial sense.

Continue reading "Small Business Saturday's Strategy Is Good for the Economy and Chicago Shoppers" »

What's the easiest way to save money this holiday season? It might be as simple as treating the holidays like, well, holidays - and you can start today.

Think about it. Today was once a day to spend with loved ones, giving thanks for food and family. Just like Christmas was once a time to celebrate the birth of Jesus - a time to focus on faith and, once again, family. But this year, it seems like the holidays have become one big excuse to go shopping. Apparently we can't even wait until Black Friday - for the first time ever, many major retailers are open on Thanksgiving, according to Chicago bankruptcy attorneys. We all know businesses need a boost - the problem is, most of us have bills to pay.

Continue reading "How Chicago Families Can Save Money By Relaxing On Thanksgiving" »