Chicago Bankruptcy Lawyer Blog

Income taxes aren't the only thing to dread come spring - but there's a silver lining.

With warm weather on the horizon, gas prices are starting their typical upward climb, say Chicago bankruptcy attorneys. The price at the pump is up 9 cents this month and fast approaching a $3 a gallon national average. That's an increase of 81 cents over last year, according to AAA.

Now here's the good news. First, a rising Illinois unemployment rate - about 11 percent as of January - may come in handy when it comes to gas prices. Less folks driving to work means less demand for oil, and possibly an affordable summer at the pump. Second, there are some easy ways to save money by offsetting the rising cost of gas.

Continue reading "Chicago Gas Prices Go Up As Spring Approaches" »

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" »

Remember cash for clunkers? Well, how about rebates for refrigerators?

Uncle Sam has $300 million in stimulus money, and he wants you to buy a new fridge - or washer, dryer or HVAC, according to Chicago bankruptcy attorneys. The point, of course, is to encourage consumers to start spending - but also to replace old, outdated appliances with new, energy-efficient ones. Modern washing machines, for instance, use about half the water as their older counterparts. They also squeeze out more water during the spin cycle, meaning you'll need less energy to dry your clothes as well.

If you're in the market for new appliances, this might be the time to do it. However, it's important to weigh the pros and cons of the rebate program - especially if you're already struggling to make ends meet without a new fridge to pay for.

Continue reading "Chicago Bankruptcy Attorneys See Pros and Cons to Cash for Appliances Program" »

You can't believe everything you read - especially when it comes to your bank, say Chicago bankruptcy attorneys.

Many banks are sending out letters urging customers to sign up for overdraft protection, a program that allows your bank to authorize a debit purchase - even if there's not enough money in your account to cover it. Some letters are going so far as to threaten customers, warning that their debit cards won't continue to work unless they contact their bank immediately, according to the New York Times.

With bold font and terms like "emergency" and "contact us immediately," these messages can be unnerving - not to mention confusing - for folks who frequently rely on a debit card to make purchases. But their purpose is actually very simple - they're advertisements. And you shouldn't fall for them. Overdraft protection isn't about saving you the hassle of overdrawing; banks want you to sign up so they can charge a fee each time they authorize money because you don't have enough to cover a purchase. Here's the real story on overdraft protection.

Continue reading "Chicago Bankruptcy Attorneys Warn Consumers About Overdraft Protection Fees" »

As if it isn't annoying enough that credit card and bank account fees are getting higher, now health insurance premiums are poised to jump skyward, according to Chicago bankruptcy attorneys.

In at least six states, people who buy their own insurance could see rates rise by at least 50 percent, according to the Associated Press. And they're not alone - employees with insurance plans through work have been seeing 5 percent more on average amounts carved out of their paychecks.

Americans deserve affordable health insurance, whether it comes from a government option or not. But in the meantime, some insurance is better than none - and canceling your plan to save money might be a risk you can't afford. Unless you can accurately predict the future, gambling that you won't get sick is a bad bet. An unexpected illness or hospital stay can cost you thousands more dollars than you'll save by not paying your monthly premium - in extreme cases, it could cost you millions. Fortunately, there are ways to lessen the pain of paying for health insurance so you can afford to be protected.

Continue reading "Healthcare Costs Go Up While Incomes Go Down, Say Chicago Bankruptcy Attorneys." »

So you lost your job last year and picked up some unemployment benefits. Once you find employment, you're out of the woods, right?

Not necessarily, say Chicago bankruptcy attorneys. Unemployment benefits sure come in handy when you need to put food on the table. But they can also cost you. As it turns out, unemployment benefits are taxable after the first $2,400 - or $4,800 per married couple. After that amount, you'd better start treating those payments as income, because they'll be taxed that way. Not sure how much you received last year? You should receive a Form 1099-G in the mail, which you'll need to report on your 1040.

Fortunately, there are ways to offset some of the damage - and not just of unemployment benefits, but of any surprise tax.

Continue reading "Chicago Bankruptcy Attorneys Recommend Cash Cushion For Tax Season" »

Love is supposed to be in the air, but it can be hard to feel positive when your bank account is, well, negative.

But whether you think of Valentine's Day as the most romantic day of the year or just another excuse to spend money cooked up by card companies, you can make the most of the holiday without going broke - even if you're in debt, according to Chicago bankruptcy attorneys.

Continue reading "Show Your Bank Account Some Love This Valentine's Day, Say Chicago Bankruptcy Attorneys" »

Do you ever get the feeling that you're eating up your paycheck faster than you can spend it? You're not just imagining things, according to Chicago bankruptcy attorneys.

Prices of grocery items like bread, milk and meat are rising faster than most salaries. The average American family of four spends about $600 a month on groceries -- or about $7200 annually. If you make $40,000, it's like you're devouring one-fifth of your paycheck - probably closer to one-quarter if you count all those restaurant meals.

Food obviously isn't something you can cut out of your budget, but that doesn't mean you can't save money on groceries. The kind of food you buy, when you buy it and where you buy it can potentially save you thousands of dollars a year and even improve your health, which could in turn lower your medical bills.

Continue reading "Chicago Bankruptcy Attorneys Tips for Saving Money on Grocery Shopping" »

It's bad enough that we have to deal with pushy retailers and their promotions when we go to the mall, but now they're following us into our home, say Chicago bankruptcy attorneys.

When you fill out online surveys, enter drawings at stores or even use your credit card to pay, you're giving retailers access to your personal information. Next thing you know, your mailbox is filled with catalogs and your inbox with ads, and the phone is ringing off the hook with store employees who want to tell you about their next big sale. Ever visited eBay or Amazon and saw a homepage filled with a bunch of stuff you like? It's no coincidence - those picks are just for you, based on what you've been viewing online.

That's fine if you have all the money in the world and don't mind the harassment. But for the large majority of Americans -- many of us struggling to balance paying off debts with making the mortgage - it's just another obstacle to financial freedom.

Continue reading "Chicago Bankruptcy Attorneys Say Protect Privacy to Stop Harassment and Save Money" »

Some folks don't save because they think they can't afford to, but many more have another excuse - they don't want to go without. A dollar saved is a dollar you can't spend, right?

But that's not true. A good savings plan isn't about not spending - it's about earning. I'm talking about interest. Whether you stow your cash in a savings account, a 401k, a CD, government bonds or the stock market, you're (hopefully) going to earn a certain level of return. Think about it this way: if you can spend more of your money this year investing in your future - and less paying off debt - you can go from forking over interest to earning interest.

Of course, first you'll have to tackle that annoying debt and come up with a savings plan that's right for you, as we discussed on Tuesday and Thursday. Then comes the fun part - making more money.

Continue reading "Get The Most From Your Savings With Interest" »

What if I told you there's a way to increase your income by adding another payment each month? You'd probably think I was out of my gourd, right?

Fortunately for you, I'm not. See, there's a twist - the extra payment is to yourself. That's right, I'm talking about saving.

On Tuesday, we talked about how easy it is to start achieving your savings goals once you get over the hurdle of all those excuses that have been holding you back. Today, we're going to look at how to make the most of those newfound dollars -- especially when you're in debt.

Continue reading "Put Your Savings Toward Debt First" »

Saving money often presents a problem. You know you need to start saving, but you can spare so little thanks to your debt, you figure why even bother.

Well, I'm going to let you in on a secret: every little bit counts. It's better to save one dollar than to save no dollars at all. And if that one dollar is what it takes to get the ball rolling on your fresh financial start, then it's worth a lot more than its paper value.

Most folks tell themselves saving would be easier if they just made a little more money. But chances are when you finally get that much-needed raise, you'll quickly find other uses - and excuses - for your cash. However, if you can set aside just a couple bucks each month starting now, you'll kickstart a habit that can last you a lifetime, no matter how much you get in your paychecks.

Continue reading "Change Your Financial Mindset to Start Saving Money" »

Gone are the days when losing weight or kicking a smoking habit were top New Year's resolutions. This year, it's all about the money.

And for good reason. With millions of Americans facing foreclosure, out of work or otherwise struggling to pay the bills, it's time for a real change. It's time we stopped procrastinating and making excuses and instead started saving. Don't worry; it's easier than it might sound. And as an added bonus, creating a spending plan can actually help you achieve other changes in your life - like quitting cigarettes or eating more healthfully.

Unlike many folks fear, a spending plan doesn't have to take all the fun out of your shopping. But it can streamline your life by helping you make more realistic choices.

Continue reading "Start the New Year Right with a Realistic New Spending Plan" »

Mention holiday expenses, and most folks think of immediately of the gifts. But the little costs of Christmas cheer can add up, too.

Take the typical holiday party. I have one every year. We're not talking anything fancy or expensive - just a casual gathering of friends for appetizers, drinks and Christmas movies - and yet, for many years, the cost of my simple gatherings was the last straw for my wallet. Between the groceries and festive decorations, it would push me over the line from simply scrounging to flat-out broke.

The problem was, I overdid it. Because I was focusing my budget restraint on the obvious - gift shopping - I wasn't paying attention to the smaller stuff like the food I was impulsively tossing into my cart at the store or the Christmas plates I bought off the sale rack or that cute pair of shoes I had to buy to go with that cute outfit I might wear at the party, and so on. It's hard to stay in control when you're being tempted by sales and discounts, pretty displays, tasty-looking treats and ads on TV, billboards and even shopping carts.

But use a few of the following tips to stick to your budget the same way you (hopefully) do the other eleven months out of the year and you'll be financially rewarded when the new year rolls around.

Continue reading "How to Have an Affordable Christmas Party" »

Old-fashioned coupons are going high-tech.

With folks looking for ways to stretch their budgets this holiday season, millions of consumers who once scoffed at the idea of penny-pinching are turning to coupons. But rather than clipping them from magazines or packages the way Grandma used to do, they're going online.

Many coupon providers saw record traffic during this week's Cyber Monday, now considered the biggest online shopping day of the year. For instance, RetailMeNot saw 1.1 million shoppers - a surge of 57% over last year while CouponCabin visitors edged 65% higher, according to USA Today. The article also noted that over 20% more shoppers are printing online coupons this season than last year.

But as with any sale, it only pays off under the right circumstances.

Continue reading "Holiday Shoppers Going Online to Find Deals" »