Chicago Bankruptcy Lawyer Blog

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 " »

Most of us consider the recession a bad thing, and for many good reasons. But for Chicago workers lucky enough to still be employed, today's economy might actually have some benefits, too.

According to the New York Times, wages are on the rise, inflation is on the decline and the rate of layoffs is stabilizing. So what does it all mean? If you can manage your money and keep your job, you just might make it out of the recession in better shape than you entered it.

Continue reading "How the Great Recession May Have Benefits for Chicago Workers" »

How often do you think, "If I just had a little more money, I would be so much happier?" If you're like most folks, you do it quite frequently.

But there's a new theory floating around these days, say Chicago bankruptcy attorneys. Money can help you pay the bills and it can help you put more in your shopping cart. But apparently, the old adage is true - money can't buy happiness

Continue reading "How Less Money Can Equal Greater Happiness for Chicago Consumers" »

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 " »

One day we're discussing the end of the economic downturn - the next, we're speculating about whether we're in a double-dip recession.

What's the moral of the story? You just can't trust the economy - so you've got to trust yourself.

Sure, things seem bad right now. But if you look at the past, you'll see that economic history is punctuated by a series of ups and downs. Some say we're experiencing a double-dip now, others say we're not. The truth is, it doesn't matter, say Chicago bankruptcy attorneys. What matters is the state of our finances. Because if they're prepared to weather any economic storm, we'll be prepared as well. And if the storm never comes? Look at is as free financial insurance.

Continue reading "Chicago Residents Prepare Finances for a Possible Double-Dip Recession" »

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" »

For Chicago shoppers looking to save a buck, the finance bill passed by the Senate this week offers some pretty intriguing speculation.

Free credit scores, the elimination of mortgage prepayment penalties, and a consumer financial protection agency are just some of the possibilities.

Here's a brief rundown of the potential ways the new finance bill could help you save money. But since we won't know for sure until the bill is finalized sometime in the future, remember that it really is just that: speculation. If you want to increase your income and get rid of debt, you don't have to wait for Uncle Sam - you need to take action today.

Continue reading "Finance Bill Could Offer Opportunities for Chicago Consumers to Save" »

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" »

A few years ago, most people thought of cutting coupons as a hobby for little old ladies.

This year, we're realizing those little old ladies were onto something. Call it a silver lining to the recent recession: after coupon use decreased for several years straight, it skyrocketed a whopping 27 percent in 2009 -- the second-largest increase ever, according to The Nielsen Company.

Coupons make sense - when used correctly. It's a pretty simple formula, really. If you need to make a purchase, then using a coupon to do it can save you a lot of money with very little effort. Be careful, though - if you use coupon clipping as an excuse to buy what you don't really need, you might end up adding to your debt.

Continue reading "Cash-Strapped Chicago Shoppers Start Clipping Coupons to Save Money" »

The recession may be good for something after all: getting rid of debt.

On the one hand, tough economic times are making consumers more reliant than ever on credit, say Chicago bankruptcy attorneys. Many of us have been piling new debts on top of the balances we carried before the recession hit. On the other hand, that extreme financial distress is encouraging consumers to do something many of us once thought unthinkable - file for bankruptcy.

And, lo and behold, we're finding out that it works.

Continue reading "More Consumers Turn to Chapter 7 Bankruptcy to Relieve Debt, Say Chicago Bankruptcy Attorneys " »

Americans spent more - but earned less - in January, say Chicago bankruptcy attorneys.

Personal spending was up 0.5 percent in the first month of 2010, according to The Commerce Department. That would seem to bode well for economic recovery, except that incomes in January rose by just 0.1 percent, much less than what economists had predicted - and the worst rate in four months.

There's good and bad news. First, the bad. As a result of more spending and less money, the savings rate has dropped. Last year Americans saved 4.3 of our incomes - the highest rate in over 10 years - but in January we only saved 3.3 percent. We might be spending more now, but without raises (and in some cases, jobs) we could eventually run out of steam, stifling economic recovery. But here's the happy news. Our savings rate is still a huge improvement over the negative rate we had before the Great Recession. And hopefully we can keep it up by slowing our spending to match our incomes.

I know it's not easy, especially when the recession - and the threat of layoffs and foreclosure - drags on. But there are ways to make saving money a little easier.

Continue reading "Chicago Bankruptcy Attorneys Say Americans Spend More But Earn Less" »

The recent recession did more than change our finances - it also changed out attitudes, according to Chicago bankruptcy attorneys. And that's a good thing.

Many of us are vowing to make 2010 the year we finally find freedom from debt. And our new treatment of money means some of us have a head start we didn't even know about. How did it happen? Many Americans lost work hours or changed jobs in the past year or so. But instead of simply cutting back by the amount we gave up in salary, we've been changing our lifestyles. We're doing more with less.

Yes, some of us are working longer hours to make ends meet, but the vast majority are filling some of that extra time with not looking for new work, but finding new hobbies - cooking more at home, starting a backyard garden, taking classes at the local community college, reading books, checking out museums and other cool stuff in our hometowns, getting outside or - here's a novel idea - actually spending quality time with our families. Crazy, I know. Fortunately, there's a way to balance our new lease on life with debt-free future - bankruptcy.

Continue reading "Chicago Bankruptcy Attorneys Explain How the Recession Is Helping Us Live Better with Less Money" »

We often hear about how we shouldn't rely so much on credit. But rarely do we hear the other side of the story - the fact that many of us could no longer qualify for more credit if we wanted it.

Just a few years ago, lenders were handing credit out like candy - in the mailbox, at stores, on college campuses and through subprime mortgages. Heck, I even know 5-year-olds who were offered credit cards through the mail. But if banks are at fault for giving out credit consumers couldn't afford, we have to take some blame for spending what we couldn't afford. Many folks (myself included) once used that credit as an excuse to spend more than we earned. The end result? An economic meltdown that's caused consumers to default on their debts - and scared banks to get stingy with future credit.

So if credit is so dangerous, what's the problem if we have less of it? Because our economy needs some credit to get back on track.

Continue reading "Consumers Credit Is Getting Harder to Come By" »

If your financial state has you struggling for something to be thankful this year, take heart - at least your holiday meal won't cost as much as last year.

For the first time in almost a decade, the price of a Thanksgiving meal has dropped.
A traditional dinner of turkey, mashed potatoes and gravy, stuffing and all the fixings will cost an average of $42.91 for a group of 10 people, roughly 4% less than it did a year ago, according to the American Farm Bureau Federation.

It might be hard to imagine (I know I grit my teeth every time the grocery store clerk rings me up) but food prices have indeed declined as a result of lower energy costs and the effects of the recession. As an economist noted in a farm bureau press release, the cost of a Thanksgiving meal now costs less per person than a fast-food restaurant "value" meal. Such savings often goes unnoticed as we struggle to put food on the table while our boss is freezing wages and eliminating bonuses - or, worse, cutting our job. But, since this Turkey Day is all about giving thanks, there's no better time to focus on the positive.

Continue reading "Thanksgiving Meal Costs A Little Less This Year" »

Short on cash? How about turning some of your trash into treasure?

Every time I start complaining that I don't have enough living space, I clean my closet and realize that it's me, not my house, that's the problem. And unless you're a neat freak, I bet you've got a stash of unused stuff somewhere, too.

But purging your junk doesn't just free up more space. It can also free up cash - especially handy now that the holidays are upon us (read on for a more permanent way to free up money).

Take your old jewelry, for instance. Gold is going for a record $1,119 per ounce as investors buy up the precious metal in hopes of protecting themselves against a falling dollar. Have some of your mom's gold jewelry from 20 years ago, maybe something that doesn't carry much sentimental value? You can get a pretty penny for it - and clear out some space in your jewelry box at the same time. (Word to the wise, though - get it appraised by a professional, not a pawn shop or someone in a TV ad, to get your fair share.)

Continue reading "Selling Unused Stuff Can Be a Golden Opportunity for Cash" »