Chicago Bankruptcy Lawyer Blog

Up until now, banks have been the bad guy in the mortgage crisis. But it seems like America's most hated corporations are finally trying to redeem themselves.

Banks are working to offer better loan modification programs to troubled borrowers, according to a recent article in Newsweek. And the timing couldn't be better, with recent reports that half of homeowners in the government's Making Home Affordable program ended up throwing in the towel. Unfortunately, banks won't be able to help every one of the millions of homeowners at risk of foreclosure.

Continue reading "Bank Programs Offer More Flexible Loan Modifications Than Making Home Affordable" »

If you've used the last couple years to turn your financial lemons into lemonade, you're not alone.

Despite hard economic times, Americans have managed to decrease credit card debt to the lowest level in 8 years and more than 13% less than just a year ago. Not only that, but more folks are making their payments on time. For some of us, its solid proof that all that scrimping and saving and budgeting can really pay off, say Chicago bankruptcy attorneys. For others, though, it might be a nice symptom of a not-so-nice cause.

Continue reading "Chicago Homeowners Lower Debt But Struggle to Pay Mortgage" »

Worried you have a bad credit score? You're definitely not alone.

More than a quarter of Americans now have a credit score of 599 or less, which categorizes them as a poor risk to lenders - that's 2.4 million more people than before the Great Recession, according to a recent report by FICO, Inc. That means more folks than ever will have trouble securing car loans, getting a good mortgage rate and qualifying for new credit cards.

But there's hope.

Continue reading "Bankruptcy Can Help Improve Decreasing Chicago Credit Scores " »

There's a big difference between debt relief and debt relief. And no, that's not a typo.

You've probably heard the advertisements on the radio and read them on the Internet - so-called debt relief companies claim they can negotiate with your creditors in order to get your debt paid off. They promise you'll have a low monthly payment and freedom from debt in just a few years, or even a few months. How can you go wrong, right?

But just because a company has "debt relief" in its name or slogan, that doesn't mean they can get the job done.

Continue reading "Bankruptcy Can Sometimes Lower Debt When Chicago Debt Relief Companies Can't" »

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" »

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" »

You might think the easiest cure for a shopping addiction would be having less money to spend - but you'd be wrong.

That's like saying someone addicted to gambling will stop pressing their luck when they start losing - ain't gonna happen. Much like gambling, overeating or smoking, spending can be a compulsion. And sometimes the more things spiral out of control, the more an addict clings to her compulsive behavior. Because of that, some folks actually spend most carelessly during a recession.

If you're consistently living paycheck to paycheck, you may want to ask yourself the following questions.

Continue reading "Curing a Spending Addiction Can Relieve Debt for Chicago Shoppers " »

Ever found a not-so-pleasant surprise when you opened your wireless bill - and saw some unexpected cell phone charges? Those days might be over, according to Chicago bankruptcy attorneys.

This week the Federal Communications Commission announced it was looking into a plan to notify wireless customers when they are ringing up cell phone fees not covered by their plan, like roaming or data usage charges.

For phone customers, it can only help. But is it really needed? The truth is, you don't have to wait for a bill to find out how much you're spending. All you have to do is make an effort to keep better track of your money.

Continue reading "Keeping Track of Cell Phone Charges Is Key to Lower Wireless Bill" »

Don't be surprised if you see an unfamiliar site in your mailbox soon - credit card offers.

That's right, after many months of tightening up credit, banks are on a mission to lure back customers they hope will start spending again as the economy picks up. And that means more credit card pitches, according to Chicago bankruptcy attorneys.

It's a good sign for the economy. But it can be a bad sign for careless consumers. As always, using a credit card to spend more than you earn can quickly land you in debt - and with a host of new fees, these new cards can make it harder than ever to climb back out.

Continue reading "Chicago Consumers Might Notice An Increase in Credit Card Offers As Banks Loosen Up Credit" »

Cutting back on your credit cards is a good thing - cutting up credit cards, on the other hand, might be going too far.

With many folks becoming more cautious about taking on debt, it's become popular to forgo plastic for cash or debit - or to at least to cut back on the number of credit cards in use, according to Chicago bankruptcy attorneys. Some cardholders have even taken it to the extreme, cutting up credit cards or canceling accounts.

But sometimes not using a card can be almost as bad for your credit as using it.

Continue reading "Unused Credit Cards Can Cause Problems for Chicago Cardholders" »

My mom taught us kids to put our spare change in the piggy bank and it worked. That money helped fund many a spending spree - and even helped pay for (a small part) of my college tuition.

Problem is, nowadays much of our spending is done on credit and debit cards. The downside of not having to make a trip to the ATM is that you don't have any change leftover. Somewhere along the way, using plastic instead of paper money became one of our many excuses not to save.

But there are ways to save even virtual change. And because many of the savings methods happen automatically, you might be more likely to stick to a savings plan than if you had to empty your wallet into the savings jar every week.

Continue reading "Virtual Saving Accounts Help Chicago Consumers Jumpstart Savings Plans" »

Think debt is just a drain on your finances? Think again. Carrying too much debt can actually be detrimental to your entire life, from your income to your health.

Let's say you're looking for a job, whether it's because you're unemployed, a new college graduate or interested in changing careers. You know you're qualified, you write up a great resume and you ace the interview - but you don't get the position. What gives? Maybe your credit.

Employers can often request a copy of your credit report. And if they see a load of debt and a record of late payments- fair or not - it's not going to reflect well on your character. But here's the good news. Not only can you fix the situation by fixing your credit, but the process of making an effort will often prove to potential employers that you have what it takes for that job.

Continue reading "Too Much Debt Can Keep Chicago Job Seekers Unemployed" »

The good news: almost a quarter of a million homes have received lower mortgage payments since the inception of Obama's foreclosure relief program last year.

The bad news: not all of the modifications will last.

A rising number of homeowners are defaulting despite receiving cheaper mortgages. Defaults almost doubled last month alone, according to the New York Times.

Sure, everyone can benefit from a lower house payment. But often times a lower payment alone is not enough to solve our financial problems. What we need is a plan that addresses the root of our inability to pay the bills - for many of us that means eliminating credit card debt.

Continue reading "Bankruptcy Might Offer a Better Way for Chicago Homeowners to Stop Foreclosure" »

Maybe the newest slogan of credit card companies should be, "Use it or lose it."

Creditors are offering up all kinds of new credit rewards programs to distract Chicago customers from the annual fees and other costly changes they're making as of late. So what's the problem? Those rewards points aren't guaranteed, according to Chicago bankruptcy attorneys.

But before you give up on those long-awaited cash rebates or a dream trip to Hawaii, take heart - you might be able to salvage a free ride. You just have to read the fine print in your credit card agreement.

Continue reading "Credit Card Companies Try to Lure Chicago Customers with Rewards Points " »

Getting a free credit report is about to get a whole lot easier - and cheaper - for Chicago credit users.

Until last Friday, many companies heavily advertised credit report services - services that usually came at a price. The problem is that those same services are available for free at the government-sanctioned site AnnualCreditReport.com. And thanks to a new rule by the Federal Trade Commission, ads selling credit reports now have to point consumers to the free site as well.

Right off the bat, this could save you $15 a month - the amount a typical for-profit credit report service charges. But your future savings can be even greater. Just like getting a checkup at the doctor's office is a good indicator of your current health, checking your credit report will give you a view of your financial health - and how to make it even better.

Continue reading "New Rule Makes It Easier for Chicago Consumers to Get Free Credit Reports " »