Avoiding Debt and Other Financial Problems This December

Whether you are shopping for holiday gifts in Chicago or planning holiday travel to visit family or friends out of state, this can be one of the most expensive times of the year. Every year, Illinois residents spend thousands of dollars to buy Christmas presents, Hanukkah gifts, and other presents during the holiday season. In addition, many people also purchase plane tickets and pay for hotels during December, either as part of a family vacation or as a holiday necessity to spend time with loved ones. For many people, the amount of money they spend in December can lead to debt problems in the new year, and in some cases can lead Illinoisans to consider personal bankruptcy.
No matter how you look at the numbers, if you participate in the holiday season, you are likely to spend more money than you normally are accustomed to doing at other times of the year. A recent article from U.S. News & World Report provides some important tips for individuals and families alike to avoid financial stress during the month of December. We would like to highlight a couple of them for you here.
Obtain Your Credit Report and Understanding Your Credit Score
You might not immediately think to check your credit score when you are thinking about ways to save money this holiday season. However, as the article explains, it is important to be self-aware when it comes to your credit report and your credit score and what it likely means for your ability to secure credit at this point in time.
How can this help you to avoid unnecessary spending and to steer clear of holiday financial problems? The article suggests that “shoppers who are motivated to maintain or improve their score may find they are less likely to charge purchases or open new credit lines when holiday shopping.” In other words, if you know what your credit score is currently, and you recognize that it has room to improve, you may be encouraged to take steps not only to avoid damaging your credit, but in fact to improve it in the new year.
Decide Whether You Will Buy Gifts for Many People or for Just a Few
How many people in your life will receive gifts? The article suggests that consumers must decide whether to “go narrow and deep with gifts or wide and shallow.” Regardless of how you decide, make a physical list of everyone for whom you plan to purchase a gift. Then budget an amount for each. If you decide to “go narrow and deep,” meaning that you plan to buy gifts for only a select few, then you can spend more, or “go deep,” so to speak, for each person. If, however, you plan to “go wide and shallow,” then you should plan to spend much less on each person given that so many more are on your list.
What is the biggest risk in making your gift list? You do not want to “go wide and deep,” making a large list of gift recipients and spending too much money on each person. In most cases, the article argues, “when people try that approach, they almost always overspend what they can afford.”
Contact a Consumer Protection Lawyer in Oak Park
If you do end up overspending during the holidays and have questions or concerns about debt and bankruptcy, an experienced consumer protection attorney in Oak Park can help. Contact the Emerson Law Firm today to speak with a dedicated consumer advocate.
See Related Blog Posts:
Higher Rates of Personal Bankruptcy in Illinois

Comments

Post a Comment

Popular posts from this blog

Payday Lending and Predatory Lenders in Illinois

If you are in substantial debt in the Chicago area and are living in a paycheck-to-paycheck cycle, you may have taken out a payday loan to make ends meet. While payday lending is illegal in a number of states due to the predatory nature of these loans, it remains legal in Illinois. As a result, many debtors in the state have used payday lenders, and far too many of those borrowers cannot repay what they owe. According to a recent article from Progress Illinois , consumers have filed complaints about payday lenders in the state, illuminating a need for federal rules that address harmful lending practices . Predatory Payday Lenders and Protections for Consumers Due to the perceived predatory nature of payday loans, twelve states in the country have banned these lenders from operating completely, according to a fact sheet from loans.org . The states that currently have laws prohibiting payday lenders from operating include Arkansas, Arizona, Connecticut, Georgia, Mary...
Read more

Phantom Debt Collection Scams on the Rise in Illinois

Have you been contacted by a person claiming to be a debt collector who is seeking to recover a debt you allegedly owe? If so, you are not alone. According to a recent report from CBS Chicago , such parties claiming to be debt collectors are on the rise, and they are scamming Chicago-area residents. These alleged debt collectors are part of schemes known as “phantom debt collection scams,” since they involve the attempt to collect on a debt that the consumer does not actually owe. How can you avoid becoming a victim in a debt-collection scam ? What should you do if you have been targeted by a fake debt collector? How Do Phantom Debt Collection Scams Work? Now, you might be thinking to yourself: I would never agree to make payment on a debt that I did not owe. But the scam is not always that simple. Parties at the center of debt-collection scams often target consumers who do actually owe debts (to someone or to some entity), and they prey on the fact that these c...
Read more

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti...
Read more