Chicago Bankruptcy Lawyer Blog

As if it isn't bad enough that most folks are paying upwards of 20% in credit card interest, now Chicago consumers are paying a premium to use cash, too. But it doesn't have to be that way, say Chicago bankruptcy attorneys.

It's no news that withdrawing money from another bank's ATM will result in a fee - both from your bank and the competitor whose machine you're using. Usually those fees have ranged between $2.50 and $3. But Chase recently announced it's trying out $5 ATM fees for non-customers in Illinois. If you're taking out just 20 bucks, that's the equivalent of 25% interest - even more, when you factor in the penalty your own bank will levy.

If customers are willing to pay these outrageous rates, other banks will likely follow suit. Have Americans really become so reliant on convenience that we're willing to fork over a quarter of our income just for the ease of using the nearest ATM?

Continue reading "ATM Fees Add to Chicago Consumers' Debt Woes" »

Would you be OK with paying a 60% premium on your purchases? If you're like most Americans, the answer might be yes.

Consumers are signing up in droves for high-interest credit cards like First Premier's 59.9% APR card. In fact, the same card had plenty of takers when it debuted with a whopping 79.9% APR (the company only lowered the rate this year because so many borrowers were defaulting). So why are so many folks clamoring for a chance to be charged outrageous interest? Simple, say Chicago bankruptcy attorneys. They think it's the only card they can qualify for.

Continue reading "Chicago Consumers Sign Up For Credit Cards With Outrageous Rates" »

Kmart's latest blue light special might not be on clothing or toys, but on financial services.

With millions of Americans looking for checking account alternatives to avoid rising bank fees, retailers like Kmart, Wal-Mart and Best Buy are jumping on the banking bandwagon, according to The Washington Post. Kmart, for instance, is testing out prepaid cards, cash transfers and even cash checking services in its Illinois stores in hopes of luring customers who are either fed up with big banks or who never had a bank account in the first place. But as with any product, consumers are finding there are pros and cons.

Continue reading "Chicago Shoppers Turning To Big Box Stores For Financial Services" »

If you've checked your mailbox lately, you probably already know that credit card companies are pulling out all the stops to lure new customers in 2011. But are the latest credit card offers worth it?

Following a period of tighter credit, credit card offers nearly doubled in 2010, according to a recent market study. On the one hand, banks are sweetening those offers with a wider variety of rewards cards and low-fee balance transfers with 0% introductory rates. And of course, consumers stand to benefit from recent legislation that did away with things like surprise interest rate hikes and unfairly high fees.

On the other hand, a credit card is just that - a credit card. And opening a new account could ultimately result in the same old trials and tribulations, caution Chicago bankruptcy attorneys.

Continue reading "Chicago Consumers Should Weigh Rewards, Risks of New Credit Card Offers" »

It's a temptation many of us face every time we bring in mail from the mailbox: should we use those free 0% interest balance transfer checks that come packaged with credit card offers?

With many Americans now carrying debts of $10,000 or more on cards that charge anywhere from 20% to 35% interest, a low- to no-introductory rate can seem like a godsend - a chance to finally get those high-interest debts under control. But there's more to the story, caution Chicago bankruptcy attorneys.

Continue reading "Pros and Cons of Using Free Balance Transfer Checks to Pay Down Debt" »

Score another one for the consumer. Debt settlement companies are no longer allowed to charge upfront fees, thanks to the Federal Trade Commission's attempt to clean up shady debt relief practices.

That must make debt settlement a good deal, right? Unfortunately, that's not the case. There's a reason that debt relief companies - or scams, as some might call them - may make your debt problems worse rather than better, say Chicago bankruptcy attorneys.

Continue reading "Why Chicago Debt Settlement Companies May Not Solve Your Debt Problems" »

It seems that every time Americans turn around, there's a new credit card law going into effect. And though the purpose of all these rules is to protect consumers, they sometimes have unintended consequences.

Most recently, a law went into action this weekend to limit credit card penalties. Previous legislation enacted this year restricts credit card issuers from suddenly changing interest rates. On the one hand, both laws can help us save money on our credit cards. On the other hand, banks are finding fresh ways to take our money - this time, through higher interest rates on new cards and purchases.

Continue reading "New Credit Card Laws Lead to Higher Interest Rates for Chicago Consumers" »

When it comes to making decisions about our purchases, sometimes habit trumps common sense.

That would explain why I recently plunked down $100 on insurance for my new cell phone. I've always purchased the insurance plan before, so I didn't think twice about doing it again - never mind that I have yet to lose or break a phone.

But according to Consumer Reports, I could save big bucks by forgoing my wireless provider's insurance policy - and some other common financial products - next time around.

Continue reading "Save Money By Avoiding Some of the Biggest Financial Product Rip-offs" »

If you can't beat 'em, join 'em - at least, that's what big banks are doing.

After their effort to stop the financial reform bill failed with the overhaul's passage Thursday, banks have no choice but to play along - but they're playing on their own terms, according to Chicago bankruptcy laywers. That's bad news for the many folks struggling with large debts.

For instance, new debit rules in the legislation decrease the interchange fee - the amount that retailers must pay to banks for debit card transactions. So while more retailers might start accepting debit - a benefit for consumers who want more payment options - banks plan to make us pay elsewhere.

Continue reading "Banks Are Back to Old Tricks and New Fees after Financial Reform Bill Passes" »

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" »

Wouldn't it be great if the government paid you to go to school? Maybe that's why a growing number of Americans are falling for college scholarship scams.

Chances are you've noticed the online advertisements claiming the government is giving grants to folks who earn less than a certain amount every year, to stay-at-home moms, to job seekers- by the looks of it, to just about everyone. Or maybe you've received a phone call or e-mail from someone claiming to work for the Department of Education - and who's willing to replace your existing student loans with government grants. If so, be wary.

Sure, the idea of free money might sound tempting, but are you willing to risk your financial solvency for it? Upwards of 350,000 people fall for scholarship scams every year, costing Americans $5 million, according to Investopedia.com. You're not going to save money by forking it over to scam artists. However, you can save money by using common sense.

Continue reading "College Grant Scam Ads Put Chicago Students in Debt" »

Would you give up your paycheck to get paid earlier? Doesn't make sense, does it?

But millions of Americans do just that by taking out payday loans.

When you're strapped for cash and payday is days away, a short-term loan can look like a quick solution. Get the money now, pay for it later. But the problem is short-term loans mean high-interest, and interest rates don't get much higher than at payday loan centers, where paying $100 for borrowing $300 is not uncommon - and annual interest rates can exceed 500%. Makes your credit card APR look cheap, huh?

If you're not already in debt, relying on payday loans is a sure way to get there. Here's why.

Continue reading "Payday Loan Scams Are Putting Chicago Workers in Debt" »

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" »

I'm used to paying for services like electricity, TV and food - but somehow I don't think I should have to pay a bank to take my money.

Yet banks in Chicago and all over the country are charging Americans hundreds of dollars per year just for the privilege of being customers, according to Chicago bankruptcy attorneys. Since most of us don't budget for those kinds of fees, they can catch us off guard. Sometimes we don't even realize we're being charged until we take a closer look at our statement - and, by then, it's too late.

Twenty bucks a month is $20 you could spend on tank of gas, a meal in your favorite restaurant or - best of all - towards lowering your debt. Instead, it's going to your bank. How would you like to recover that lost cash? Here are a few tips.

Continue reading "Don't Let Chicago Bank Account Fees Leave You in Debt" »