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?" »

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" »

Getting a college degree is supposed to help you earn money - but lately, some students have been losing money thanks to a growing number of financial aid scams.

For many folks out of work or looking for a way to boost their current income, going back to school seems like a logical solution. Problem is, it can be an expensive one. Average college tuition in the U.S. is over $12,000 - not including room and board, books and other fees. As a result, most college students need some kind of financial help. And their desperation can make them extra susceptible to criminals, say Chicago bankruptcy attorneys.

Continue reading "Financial Aid Scams Take Advantage Of Chicago College Students" »

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?" »

Valentine's Day is fast approaching, but the majority of Americans are doing something decidedly unromantic, say Chicago bankruptcy attorneys.

At least 30 percent of married people cop to cheating - of the financial kind, that is. In other words, they admit to hiding a major purchase or other financial indiscretion from their partner, according to the Minneapolis Star Tribune. A whopping 90 percent confess they avoid talking about money with their significant other. And thanks to the economy, these financial secrets are increasingly revolving around too much debt.

Continue reading "Are Your Financial Secrets Hurting Your Relationship?" »

As if it isn't hard enough to afford your federal income taxes come April, now Chicago residents have to worry about a state income tax hike as well.

Illinois - like California and a handful of other states - is facing a major budget shortfall. To cover it, lawmakers agreed to raise the personal income tax from 3 percent to 5 percent, at least temporarily. On the one hand, it's probably long overdue - the state of Illinois has not raised income taxes since 1989. On the other hand, it's not the best timing for thousands of Chicago residents currently struggling with unmanageable debts.

Continue reading "How Illinois Income Tax Hike Will Affect Chicago Residents" »

Between the red kettle outside the grocery store, mall clerks asking if you want to give a dollar to fill-in-the-blank cause and the seemingly endless requests for donations in your mailbox, Americans are being faced with charity choices every day.

You might think that we'd ignore them, what with most of us struggling to pay off our own debts and make the house payment. But we're more giving than we realize, say Chicago bankruptcy attorneys. It turns out that nearly two-thirds of Americans say they plan to donate to charity this year, regardless of the economy. And fortunately those donations can do more than make us feel warm and fuzzy inside - they can also help our finances.

Continue reading "Chicago Residents Still Donate to Charity When In Debt" »

It looks like American workers could be getting a raise next year, albeit a small one.

If the tax agreement between President Obama and legislators passes, one of the provisions will reduce the Social Security payroll tax rate from 6.2 percent to 4.2 percent. For someone making $60,000 a year, that's an extra $1,200 in annual take home pay - or the equivalent of another $25 a week. It might not seem like much, but if you're looking for ways to make ends meet, any little bit can help, say Chicago bankruptcy attorneys.

Continue reading "How Bush Tax Cut Extension Could Affect Chicago Workers With Debts" »

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" »

It's still a shot in the dark, but there's a possibility that some foreclosed homes could be returned to their owners, according to Chicago bankruptcy attorneys.

Officials in every state across the U.S. - including Washington D.C. - are investigating improperly handled documents and illegal activities that may have allowed lenders to foreclose on thousands of homeowners who should not have lost their properties, according to the AP Press - things like signing documentation without a required witness, having signatures given by employees who didn't know anything about the material in the documents or - even worse - by people who hadn't even read the papers.

Continue reading "State Officials Across the U.S. Investigate Legality of Foreclosures" »

Once upon a time, most stores catered to the kind of customer willing to shell out big bucks. Oh, how the tides have changed.

Today more stores are following the dollar store model, selling small-quantity but low-priced items aimed at shoppers on a tight budget, according to the New York Times. By luring a lot of customers who don't want to spend very much cash away from the competition, stores hope to increase their customer base, and thus their profits, despite the economy. It's a move that has both pros and cons for consumers, many of whom are struggling to pay the bills, say Chicago bankruptcy attorneys.

Continue reading "Chicago Stores Lower Prices to Target Consumers on Budgets" »

It's all over, folks. At least, that's what the National Bureau of Economic Research has to say about the Great Recession.

But for many of us, it's not so clear-cut. Whether we really are on our way out of the latest recession as some experts speculate, or headed into a so-called double-dip recession as others suggest, doesn't really matter, say Chicago bankruptcy lawyers. What does matter is what's going on with our own finances.

Continue reading "Recession Still Being Felt by Chicago Residents Dealing With Debt" »

As if it isn't hard enough on our finances to be headed for a possible double-dip recession, now we have to watch out for new recession-related scams, too.

The longer our economy is stalled, the more likely we are to face financial difficulties - from unemployment to foreclosure to inability to pay the bills. Unfortunately, scammers are acutely aware of this, say Chicago bankruptcy attorneys. And they're increasingly preying on our desperation for a quick fix to our money woes.

But there's good news. It's possible to identify nearly any scam , once you realize what most frauds have in common.

Continue reading "How Chicago Consumers Can Watch Out for Recession Related Scams " »

By now it's no news that filling your cart with generic goods rather than name brands can save money. But, despite persisting tough times, some Chicago customers are still holding out.

Sure, there are some generic brands that don't hold a candle to the real thing - scratchy toilet paper is a notorious one. But many are identical with the exception of the name on the package, say Chicago bankruptcy attorneys. There's nothing wrong with being a brand snob - at least, if you don't mind spending a few extra thousand bucks a year on household goods. But if you're looking for some extra money to pay down debt, you might consider rethinking your shopping strategy.

Continue reading "How Buying Generic Can Help You Get Out of Debt" »