Chicago Bankruptcy Lawyer Blog

Let's face it: Not everyone is good at managing their finances. While many people are victimized by scams, poor investments or even by their own banks or credit card companies, there are those who require help in handling their financial world.

Sometimes, the problem is magnified when a person gets married or becomes involved with another person. Money issues can cause high levels of stress in marriages, especially if they are allowed to linger.

The amount of interest that credit card companies charge their customers for late payments and other things can be astronomical. Credit card balances are one of the leading reasons people consider filing for bankruptcy in Chicago.

Bankruptcy laws were created with consumers in mind, designed to help them overcome bad situations. Being able to get rid of years of debt, through the help of a Chicago bankruptcy lawyer, can be a freeing feeling for those who have seen their credit disappear. The poor economy, job losses and unexpected medical bills haven't helped at all.

The Associated Press recently wrote an article that explains the top-four money mistakes that couples in America tend to make and what can be done to correct the problem. Those in relationships will tell you that communication is critical in order to keep a household running smoothly.

And money issues are among the chief reasons for divorce. The stress of not knowing where the next house payment is going to come from or how to pay for dinner can lead to mental health issues, physical complications and marriage problems.

Here are some tips to avoid money and relationship problems:

Let's put off talking about it
From a relationship standpoint, putting off the inevitable doesn't make things better. Not discussing a key issue like philosophies about spending and saving can lead to a difficult marriage. Major purchases, how bills will be paid, who will be in charge of paying bills and education and retirement savings are things that should be discussed either on a weekly or monthly basis.

So what if there's some cash hidden on the side?
Keeping money secrets is another obvious area of mistrust and a precursor to stress. If each person wants his or her own spending money, spell it out in the budget and talk about it freely.

It wasn't very expensive
This indicates that there is no budget in place and major purchases aren't being discussed and considered in advance. In order to avoid debt problems, an emergency account should be open and active. Do some research and ask for legal help if needed.

I'm not rich enough for a will
Life insurance may not seem to be a big deal when you're young, but you must consider how an unexpected crisis could affect your mate. If a will isn't set up, a former spouse can benefit or the surviving spouse could get hammered with estate taxes.

Continue reading "Top Money Mistakes That Lead Chicago Couples Into Bankruptcy" »

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?" »

It's that time of year again - and I'm not talking about doing your taxes.

Spring starts tomorrow, and it's the perfect excuse to get organized. If you've been neglecting your family budget, your growing debt, or your spending habits, it's time for a financial version of spring cleaning. Even if you've gotten organized in the past, it's good to give your finances an annual tune-up, explain Chicago bankruptcy attorneys. Here's how.

Continue reading "How Organizing Finances Can Help Chicago Consumers Save Money" »

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 " »

You'd think that with all the DIY personal finance tools available today - Mint.com, Quicken and online banking, to name a few - that getting our finances in order would be easier than ever.

Yet Americans are increasingly falling into debt and filing for bankruptcy. In fact. 1.5 million people opted for bankruptcy in the past twelve months, a 20 percent increase from the year before. So what's the problem? Why aren't these new-fangled organization methods working? The answer is simple, according to Chicago bankruptcy attorneys - many of us aren't using them.

Continue reading "Procrastination Leaves Many Chicago Consumers in Debt" »

Think you have to be some sort of Martha Stewart of money to have organized finances? Think again, say Chicago bankruptcy attorneys.

I used to put off organizing my money because I thought I'd have to count each and every penny or receipt - that just didn't seem attainable. But I've since learned that keeping financial records doesn't have to be complicated - it's when you don't keep track of your money that things get difficult. By making a few simple changes this fall, you can make paying the bills and managing debt a heck of a lot easier next year - and into the future.

Continue reading "Simple Organization Tips Can Make Lowering Debt Easier for Chicago Consumers" »

The same principle that makes credit cards convenient also makes them dangerous. With plastic, there's no amount of cash holding you back from making a purchase. At least, not until now.

MasterCard recently announced a new program that could revolutionize budgeting for those of us prone to retail weakness and other forms of overspending. With inControl, consumers can place monthly credit limits on certain kinds of stores or purchases. Once the limit is reached, your card stops working - and, in theory, you start saving.

Continue reading "Could New Program Keep Chicago Credit Cardholders From Overspending?" »

Have you ever gone to the store to pick up some bread or run into Target for paper towels - only to come away with a cart full of purchases and a $100-plus receipt?

You're not the only one. Stores rely on a few tricks to distract consumers from saving money and instead lure them into spending it, explain Chicago bankruptcy attorneys. Fortunately, once you know what to look out for, keeping your wits - and your cash - can be a piece of cake.

Continue reading "Watch Out for Store Tactics Meant to Lure Chicago Shoppers into Overspending" »

Memorial Day weekend is here, the kids are almost out of school, the temperature is rising - but for some Chicago residents, that summer vacation is on hold.

But dealing with debt doesn't mean you have to forgo your warm weather getaway - at least, not if you use some strategic planning to snag the most affordable travel rates for the best-priced destinations. Remember, a vacation is about getting away - it's about rest, refreshment and relaxation. Nowhere in that definition is there anything about spending big bucks. So how can you make it happen?

Continue reading "Bankruptcy Can Make Affordable Summer Vacations Possible By Lowering Debt" »

All work and no play might make for good finances - but it doesn't make for much fun.

Fortunately, Chicago consumers are realizing that they can loosen the purse strings a bit and still run a tight economic ship, according to Chicago bankruptcy attorneys - and a recent story on Msnbc.com.

If you've been scrimping and saving these past couple years, you've hopefully built up some emergency savings, contributed to your retirement and - best of all - paid down some of that annoying debt burden (maybe you were lucky enough to receive a tax refund to boot). The good news? You probably have room for a splurge now and then. The key is to monitor the size and amount of those splurges so you don't end up back where you started - stuck with a large amount of debt.

Continue reading "Chicago Consumers Start Spending on Splurges After Months of Saving" »

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" »

Can there ever be too much of a good thing? Maybe when it comes to budgeting.

Don't get me wrong - sticking to a budget is not only smart, but it can help you kick start a savings plan and even pay down credit card debt and other obligations. Problem is, Chicago consumers have heard so much about the merits of bankruptcy since the recession started that many of us are beginning to tune out. We've been oversaturated.

Going without a budget might save you some work, but it will cost you. Whether you've got a stable salary (is there really such a thing?) or no income whatsoever, a budget is just a way to ensure the money in your bank account goes towards the things that matter most to you - whether that means saving for a house, a vacation to Hawaii or finding freedom from debt.

Continue reading "Having a Budget Can Help Chicago Residents Start Saving and Pay Down Debt" »

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" »