Chicago Bankruptcy Lawyer Blog

Less than 10 years ago lenders were handing out mortgages like there was no tomorrow. This spring, it's a different story, say Chicago bankruptcy attorneys.

Just one-third of borrowers who apply for a mortgage in coming months will qualify, according to Wallet Pop. After being burned by a record number of defaults and with a glut of foreclosed homes on their hands, banks are not surprisingly older, wiser and a whole lot stricter. So what does a home buyer need to do to fall into that magic 33.3 percent?

Continue reading "How Chicago Homebuyers Can Increase Chances of Getting a Mortgage" »

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?" »

This year's average tax refund is more than $3,000 - but there may be a way to stretch it even farther.

With gas and grocery prices going up, it would be easy to allow that money to simply disappear, say Chicago bankruptcy attorneys. A couple bills here, a little shopping splurge there, some unexpected car repairs, and - poof - your bank account is back to where it was before. But there's a way to keep your refund alive long after you deposit it. How? By putting it to work for your future.

Continue reading "Chicago Taxpayers Find Secret to Getting Bigger Refund" »

Most credit cards are designed to keep you in debt. But what if they could help you lower debt instead?

That's what TD Bank says it's doing with a new credit card that offers a reward for paying more than the monthly minimum. It makes sense - at least in theory. Typical rewards cards give discounts for airline miles or shopping, encouraging consumers to spend more money, say Chicago bankruptcy attorneys. But if you're drowning in debt, you should be spending less, not more.

Continue reading "Could New Credit Card Help Chicago Consumers Keep Spending In Check?" »

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?" »

Your Valentine might have given you a box of chocolates yesterday, but will he leave you with debt tomorrow?

Earlier this month we talked about the consequences of hiding debt from your significant other. But what about the reverse - how does your spouse's debt affect you? It's not the most romantic topic, but with Valentine's Day come and gone maybe it's time to give it some thought. Understanding how your relationship affects your finances - both if you stay together and if you divorce - is essential, explain Chicago bankruptcy attorneys.

Continue reading "Is Your Partner's Debt Wreaking Havoc On Your Relationship?" »

The math is simple. Spend more than you earn, and you'll end up with debt. Earn more than you spend, and you'll gain control of your finances. So why is implementing a family budget anything but simple?

For many of us, the problem starts at a young age. Maybe our parents were never very good at balancing a checkbook, so we followed suit. Maybe we got suckered into signing up for a credit card in college, and didn't have the guidance we needed to use it responsibly. Maybe we got caught trying to keep up with the Joneses, along with everyone else before the recession.

The point is that most adults today never learned how to make and stick to a budget. So what should be easy is actually overwhelmingly complex - until now.

Continue reading "Budget Challenge Encourages Chicago Consumers to Take Back Control of Finances " »

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" »

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?" »

The most common myth about bankruptcy is that folks who file will never see a good credit score - but the truth is, they might actually see a better one.

According to an expert from Bankrate.com, it's possible to not only rebuild credit after bankruptcy but to improve to a score of 750 or more. Yes, your score will drop initially after filing, but look at that point as your clean slate. Once your debts are discharged, your credit score can begin its gradual climb back up to - and past - where it was before. But there are a few steps you can take to make your progress even smoother, point out Chicago bankruptcy attorneys.

Continue reading "The Truth About Bankruptcy's Effect on Chicago Credit Scores" »

I always thought of Grandma as the penny-pinching, coupon-clipping type. So I was more than a little surprised when, after she passed away, we learned that she'd left Grandpa with thousands of dollars in debt.

Sadly, it's becoming an even more common scenario in today's economy. Rising healthcare costs and medication prices coupled with dwindling retirement portfolios are leaving seniors with little choice but to put their everyday necessities on a credit card, ringing up debt that they may not live to pay off. And that's bad news for all of us, say Chicago bankruptcy lawyers.

Continue reading "Why More Elderly Americans Are Passing Debt On To Their Families" »

If you're like most folks, you like to dream of all the things you could afford if you finally got that pay raise. But what if I told you that you've already gotten your raise - and you're blowing it?

Thanks to a tax bill signed by President Obama in December, the majority of Americans will pony up just 4.2 percent of our paychecks for Social Security instead of the typical 6.2 percent. In other words, most of us will get a paycheck boost of $1,000 on average this year. But since that amount is spread over a year's worth of paychecks, it will likely go unnoticed by many wage earners - and therefore won't be used as efficiently as it could be, say Chicago bankruptcy attorneys.

Continue reading "How Maximizing Tax Cut Can Help Taxpayers Lower Debt" »

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" »

Looking to lower your mortgage payment? You might have more choices than you think, say Chicago bankruptcy attorneys.

Traditionally most homeowners have lowered their house payments by refinancing, which can result in a new, lower interest rate and therefore a lower payment. Problem is, the refinancing process takes time and costs money - if you even qualify in the first place, that is. Thanks to ever-tightening credit requirements, many homeowners don't meet the criteria for a refinance. Fortunately, there are other ways to save money on your mortgage.

Continue reading "Ways Chicago Homeowners Can Cut Their Mortgage Payment Without A Refinance" »

Sometimes to move forward, you've got to let go. And for many folks hoping to conquer debt in 2011, that means letting go of long-held - but often unfounded - fears about bankruptcy.

While bankruptcy filings are increasing each year, many of us are still holding back, according to a recent article in the Chicago Tribune. We worry about what our friends and families will think, about whether we'll have to give up our assets and about how we will cope with the fact that bankruptcy could stay on our credit report for the next decade. But by avoiding one of the most effective ways to lower debt, we may actually be making our financial situation worse.

Continue reading "Chicago Tribune Clears Up Myths About Bankruptcy" »