Preferred Financial Services

We have listen to all of you who read this blog and have updated our site to  make it easier for you to find previously released articles. I have reorganized past articles so they can now be searched not only by date but also by category. If its financial news it will be in the financial news section and if its a personal finance article it can be found in the personal finance section. Once in a particular folder, use the top right search box to find an article by title. Hope you like the changes and can now enjoy all the past articles with ease.

Share on Facebook

Settlements

Andover, Massachusetts August 26^th, 2010 –  Grocery shopping is a huge monthly expense for every family in America, are you doing everything you can to make sure you are not overspending? For many, grocery shopping involves running out of food at home and then heading to the nearest supermarket to purchase whatever they feel like eating. While this might be easy and lead to great meals it is also the most expensive way of shopping for food.

Saving money while shopping does not mean you have to spend hours clipping coupons each Sunday (though coupons can save you a pretty penny each week), what it does mean is that you need a plan before you enter the store. Read the following tips, and see just how much of a difference it can make.

1. Never enter a supermarket without a shopping list. Super markets and stores in general make a lot of their money from impulse shoppers. If you have ever walked into a store looking for green beans and left with a pizza and green beans then you have just added a few dollars to their bottom line. Always have a list of items you need and stick to it.
2. Before you make that shopping list you will need an idea of what you want to eat over the next few days. Brainstorm some ideas and then create a list so that you can make those meals whenever you want to. Not only does this save you money but it also eliminates those nights where you have no idea what to cook and then by default end up ordering pizza.
3. Avoid the free samples that many supermarkets offer. While it may be a great snack, a large amount of people that sample the food end up buying it, even though it was not on their original shopping list.
4. An obvious thing to avoid is the vendors that sometimes populate a grocery store. Just because there is a Dunkin Donuts in the store doesn’t mean you need to get a coffee. Save the $3 and make your own at home for a fraction of the cost.
5. Almost every grocery store in the country is designed to maximize revenue. This means that most have the essentials to a good meal along the outside and back of the store. Vegetables, fruits, dairy, and meats are the most important parts of your diet but are usually located as far away from the entrance as possible. Why you may ask? Its because the margins are usually the lowest on these. A store can make much more money by selling you pre packaged chips, soda, etc. than they can by selling you a pound of potatoes and a steak. Avoid browsing the store and head straight to where you need to be.
6. Finally, avoid the urge to splurge at the checkout counter. Ever notice how checkout counters are usually stocked with cheap and popular items such as gum, magazines, and cold soda? This is because these are again very high margin items for the store. Why purchase a 20 oz. bottle of sprite for $1.49 at the checkout counter when you can have a 2 liter bottle for $1 just 30 feet away? Stay on your toes and don’t succumb to the marketing strategies of the store.

Hopefully you can use some if not all of these tips to shave a couple of bucks off your food budget each and every week. By the end of the year you should see some significant savings that you can then use for other more important issues such as paying down your debt!

Preferred Financial Services is a debt reduction firm certified by the CFC (Center for Financial Certifications) and accredited by U.S.O.B.A. (United States Organizations for Bankruptcy Alternatives). Headquartered in Andover, Massachusetts, Preferred Financial Services has been a leader in the debt reduction industry since 2003. Preferred Financial Services has acquired some of the best experience in the industry over the past 7 years. In 2009 alone Preferred Financial Services reduced over $16.5 million worth of consumer debt for just $6.4 million, for a savings of about 60%- and over 2,900 accounts were settled on behalf of their clients.

For more information, please visit www.pfsdebtrelief.com or follow us on our blog at www.pfsdebtrelief.com/blog/ .

Contact:

Stephan Tavernini

Marketing Coordinator

Certified IAPDA Debt Arbitrator

Preferred Financial Services

stavernini@pfs1.net

Share on Facebook

Personal Finance

Andover, Massachusetts August 30^th, 2010 –  The Labor Department has released a variety of data over the last few days detailing changes in consumer spending, saving and income in July. While there has been much talk of a double dip recession the data does not back up this fear. The data signals that while consumers continue to be wary of the general health of the economy, their rise in spending and drop in savings indicate they expect a complete recovery to take place.

Consumer spending rose by over 44 billion dollars in July compared to June, a rise of .4%. This is in contrast to a .1% reduction in consumer spending in June. This newest rise is a welcome boost for the economy but is not big enough to fully conclude that consumers are back to spending their hard earned cash. A big driver of this rise was a boost in auto sales in July while factories that typically are shut down for the summer remained open. An up tick in car purchases is a good indicator that consumers are less worried about their financial situation. Americans are starting to trust their finances again and are not as scared of becoming unemployed in the short term as they were just a short time ago when auto sales were at historic lows. If they were still anxious over their employment they would not be investing such a significant part of their income on a depreciating asset such as a vehicle. All of this has been done without any government incentive program so look for this to be a leading indicator of better times to come.

Personal income rose as well in July by over 30 billion dollars, a jump of .2%. This was much needed relief for Americans as income actually dropped in June by .1%. Continued increases in personal income are a good indicator that the economy is headed in the right direction so keep an eye on this statistic moving forward. And finally, personal savings dropped in July compared to June, a good short term trend but a troubling long term trend if it lasts. Personal savings as a percentage of disposable income dropped in July to 5.9% compared to 6.2% in June. While this means consumers are once again spending more and worrying less about their debt, it is important that this rate not reach the lows which we experienced before the collapse of 2008. We all know personal spending is the driving force behind the US economy, but it also left millions of households vulnerable to long term unemployment, medical emergencies, and other catastrophic family events. This is why so many people were left with nothing once the housing market tanked and unemployment sky rocketed in late 2008 and most of 2009. Keep in mind that July’s rate is still historically high so it is not time to worry yet, but if we see a return to a near 0% personal savings rate we will know that Americans did not learn from the Great Recession and are just repeating the personal finance mistakes that led up to the crash of 2008.

Preferred Financial Services is a debt reduction firm certified by the CFC (Center for Financial Certifications) and accredited by U.S.O.B.A. (United States Organizations for Bankruptcy Alternatives). Headquartered in Andover, Massachusetts, Preferred Financial Services has been a leader in the debt reduction industry since 2003. Preferred Financial Services has acquired some of the best experience in the industry over the past 7 years. In 2009 alone Preferred Financial Services reduced over $16.5 million worth of consumer debt for just $6.4 million, for a savings of about 60%- and over 2,900 accounts were settled on behalf of their clients.

For more information, please visit www.pfsdebtrelief.com or follow us on our blog at www.pfsdebtrelief.com/blog/ .

Contact:

Stephan Tavernini

Marketing Coordinator

Certified IAPDA Debt Arbitrator

Preferred Financial Services

stavernini@pfs1.net

Share on Facebook

Financial News

Andover, Massachusetts August 27^th, 2010 – Retirement saving has never been at the top of most peoples minds as they struggle through the daily grind of paying bills, keeping a roof over their heads, and feeding themselves and their families. As the baby boomer generation is nearing or has already reached retirement age many of the younger generation are realizing that there will not be adequate social safety nets in place to provide for them in old age. The current retirees have a solvent Social Security system as well as now mostly extinct pensions to get them through the golden years of retirement. Younger generations can not depend on either of these, so what are they doing to prepare for retirement?

Before the economy crumbled in late 2008 savings in general and retirement savings in particular were at low or record low levels. As people have readjusted their financial lives to deal with the new reality of lower pay, uncertain job futures, and a soon to be insolvent social security system, saving has become much more popular. While for many this does not include retirement saving because of current budget needs, many private companies nationwide are doing something to make sure the next generation of retirees will at least have something to support them during their retirement years.

Charles Schwab recently released a survey that indicates the number of employers offering automatic enrollment in a 401(k) retirement plan has sky rocketed. 38% of employers surveyed now have automatic enrollment that require a specific opt out by the employee. This is up nearly 7 fold compared to 2005 when the rate was only 5%. On the flip side, matching contributions by the employer are not as standard as they used to be. 69% of employers currently offer some match which is down from a high of 76% in 2006. While this is discouraging it is to be expected as usually the first thing that gets dropped when a company enters a rough period is the employer match on retirement accounts. While I don’t expect this number ever to reach 90% I do expect it to head back up as the economy improves and companies begin competing for the best candidates.

While forcing employees to do anything is not really the best way to go about retirement saving it will be effective. This is a good trend to see as it means more and more people are saving for retirement without even thinking about it. The contributions are taken out of the employees’ paycheck before they even get it. While it does lower the amount of take home pay during this particularly tough period it will pay off in the long run.

Readers, where do you stand on this issue? If you are against it, are you preparing for retirement on your own or are you just hoping for the best? And if you are for it how far do you think employers can take this concept? Can they automatically enroll you in health insurance, what about gym memberships?

Preferred Financial Services is a debt reduction firm certified by the CFC (Center for Financial Certifications) and accredited by U.S.O.B.A. (United States Organizations for Bankruptcy Alternatives). Headquartered in Andover, Massachusetts, Preferred Financial Services has been a leader in the debt reduction industry since 2003. Preferred Financial Services has acquired some of the best experience in the industry over the past 7 years. In 2009 alone Preferred Financial Services reduced over $16.5 million worth of consumer debt for just $6.4 million, for a savings of about 60%- and over 2,900 accounts were settled on behalf of their clients.

For more information, please visit www.pfsdebtrelief.com or follow us on our blog at www.pfsdebtrelief.com/blog/ .

Contact:

Stephan Tavernini

Marketing Coordinator

Certified IAPDA Debt Arbitrator

Preferred Financial Services

stavernini@pfs1.net

Share on Facebook

Personal Finance

Andover, Massachusetts August 26^th, 2010 – Another week has passed and the Labor Department has released the newest jobless claims report. New Jobless claims dropped for the first time in 4 week which has led to a stronger opening on Wall Street. Claims dropped by 31,000 last week which was more than double the 15,000 drop that was expected by economists.

So what does this mean for the economy? It is good short term news but it isnt an indicator either way that this is the start of a new long term downward trend. While it is encouraging that the number of claims has dropped after a month long  rise the rate is still above 470,000 which is probably around 70,000 more than there should be in a growing and healthy economy. Clearly we still have a ways to go, but lets take this good news and worry about the future tomorrow!

Share on Facebook

Financial News

Andover, Massachusetts August 25^th, 2010 – Recent data released continues to paint a grim picture for the housing sector since the federal housing credit ended a couple of months ago. New home sales hit the lowest level ever in July and existing home sales took another tumble in July as well. All of this news is dragging on the stock market and continues to further the idea that a double dip recession is coming. While I disagree, the data is not encouraging and indicates that the housing sector still has not hit rock bottom.

New home sales dropped 12.4% in July from the previous month to an annual rate of 276,600. This is the lowest annual rate ever recorded since record keeping was first started in 1963. Not only does this mean the housing market still has some room to drop but it also means the construction industry will continue to be hard hit. As winter approaches and these numbers remain low the next 6-9 months could be particularly tough for construction workers. If this wasn’t bad enough, on Monday the NAR (National Association of Realtors) reported that July sales of existing home fell to a 15 year low. While these sales do not affect a particular industry besides realtors it is a much bigger slice of the pie and indicates demand continues to sink. While people may want to move for better work opportunities or family reasons many can not do so at the time because their current homes are underwater. Until housing prices improve the rate of home sales will continue to stay below normal.

Preferred Financial Services is a debt reduction firm certified by the CFC (Center for Financial Certifications) and accredited by U.S.O.B.A. (United States Organizations for Bankruptcy Alternatives). Headquartered in Andover, Massachusetts, Preferred Financial Services has been a leader in the debt reduction industry since 2003. Preferred Financial Services has acquired some of the best experience in the industry over the past 7 years. In 2009 alone Preferred Financial Services reduced over $16.5 million worth of consumer debt for just $6.4 million, for a savings of about 60%- and over 2,900 accounts were settled on behalf of their clients.

For more information, please visit www.pfsdebtrelief.com or follow us on our blog at www.pfsdebtrelief.com/blog/ .

Contact:

Stephan Tavernini

Marketing Coordinator

Certified IAPDA Debt Arbitrator

Preferred Financial Services

stavernini@pfs1.net

Share on Facebook

Financial News

Andover, Massachusetts August 24^th, 2010 – If you are like many Americans you have faced years of overdraft fees on your ATM/Debit Cards after charging a purchase when you did not have the funds in the account to cover the purchase. For the past 15+ years banks and credit card issuers have been making a fortune off of peoples honest mistakes without any way to stop it but now they finally can. . In the past, if your account didn’t have the funds, you were charged a $20-$35 overdraft fee every time without exception. The new rule that went into effect on August 15th is part of the 2009 Credit Card Overhaul bill and will likely save consumers as a whole millions of dollars each year in overdraft fees.

The new rule automatically bars consumers from over charging on their accounts unless they opt into an overdraft protection plan. This change is finally giving Americans the choice of whether they want to overdraft their account, not forcing them to pay a fee when they do. For those who routinely do overdraft and consider the fee worthwhile it is still very easy to opt into this plan. But for the majority of people who have been robbed left and right in the past because they didn’t realize they were over drafting this law is very much needed. Gone are the days of hundreds of dollars in fees because of a few badly timed purchases. No longer will you be paying $35 in fees for a purchase that over drafted your account by $2.

Where do you stand on this? Have you opted into the plan or are you glad that finally you will be prevented from buying goods and services when you don’t have the cash in the bank to pay for it?

Preferred Financial Services is a debt reduction firm certified by the CFC (Center for Financial Certifications) and accredited by U.S.O.B.A. (United States Organizations for Bankruptcy Alternatives). Headquartered in Andover, Massachusetts, Preferred Financial Services has been a leader in the debt reduction industry since 2003. Preferred Financial Services has acquired some of the best experience in the industry over the past 7 years. In 2009 alone Preferred Financial Services reduced over $16.5 million worth of consumer debt for just $6.4 million, for a savings of about 60%- and over 2,900 accounts were settled on behalf of their clients.

Is this the news we have been waiting for or just a temporary drop? Have you been asked to take over tasks at work that used to be done by someone else?

For more information, please visit www.pfsdebtrelief.com or follow us on our blog at www.pfsdebtrelief.com/blog/ .

Contact:

Stephan Tavernini

Marketing Coordinator

Certified IAPDA Debt Arbitrator

Preferred Financial Services

stavernini@pfs1.net

Share on Facebook

Credit Card Debt Help, Personal Finance

Andover, Massachusetts August 23^rd , 2010 – The average interest rate on credit cards rose to a 9 year high last quarter eclipsing 14.7%. This is over 1.5% higher than in the same quarter a year ago and indicates that credit card companies continue to charge fees and interest rates to make up for lost revenue due to the economy and more government regulations.

This average rate hike was followed up by news that credit card spending in the last quarter was the second highest ever recorded, falling just short of the spending level reached in third quarter of 2008. While some may see this record spending as good news for the economy I believe that this is an indicator that Americans are having trouble meeting their obligations and thus are relying on credit cards to make ends meet. This can have disastrous consequences in the when many of these people will default on their obligations. As credit card usage dipped over the past 2 years the credit card companies have done everything possible to remain profitable. The increased interest rates were the easiest way to do this and it appears to be working as many of these companies are posting strong quarterly earnings and rosy forecasts for the immediate future. While this is great for shareholders it is not very good for the average consumer with thousands in credit card debt. It is making their life increasingly difficult as more and more of each monthly payment is going towards interest and not the principle balance. This means that they are paying more and staying in debt longer than ever, just what the credit card companies want to happen as an in debt consumer is the most profitable for them.

Readers, have you noticed your rates reaching new heights? Have you said enough is enough and paid off your cards and closed the accounts? Where do you see this trend heading over the next few years?

Preferred Financial Services is a debt reduction firm certified by the CFC (Center for Financial Certifications) and accredited by U.S.O.B.A. (United States Organizations for Bankruptcy Alternatives). Headquartered in Andover, Massachusetts, Preferred Financial Services has been a leader in the debt reduction industry since 2003. Preferred Financial Services has acquired some of the best experience in the industry over the past 7 years. In 2009 alone Preferred Financial Services reduced over $16.5 million worth of consumer debt for just $6.4 million, for a savings of about 60%- and over 2,900 accounts were settled on behalf of their clients.

For more information, please visit www.pfsdebtrelief.com or follow us on our blog at www.pfsdebtrelief.com/blog/ .

Contact:

Stephan Tavernini

Marketing Coordinator

Certified IAPDA Debt Arbitrator

Preferred Financial Services

Share on Facebook

Credit Card Debt Help, Financial News

Andover, Massachusetts August 20^th, 2010 – Every June (or May depending on where you live) children leave their schools for the long summer vacation and parents scramble to find creative, entertaining, and AFFORDABLE activities for their kids to enjoy. Here are some that you may not have thought of.

• Forget the Summer Camps for a Fee go to the library instead. Not only will your kids be able to work on their reading skills and rent the newest movies for free but if you haven’t noticed libraries are increasingly becoming more diverse in their offerings. Many now offer summer programs geared towards kids that involve crafts, theater, and reading help for those who struggled during the school year. What can you lose? Membership is typically free and most of the services are as well. And as a bonus, almost all have A/C so the books and your kids don’t suffer in the heat!
• Don’t go to the beach and pay for parking and food only to have to sit in traffic on the way home, go to your local town pond or lake. Yearly membership fees are quite modest in most places and parking is generally free. Not only that, but you are literally minutes away from home in case an emergency pops up or you just want to go home and enjoy a good and cheap lunch.
• Love sports? Don’t pay the exorbitant prices of professional sports teams and instead opt for their minor league franchises. You will literally spend 10% of what you would have paid for an experience that will be just as appreciated by your kids as a trip to a professional ball park. As an added bonus most Minor League team have fan activities on a nightly basis that will get your kids involved and allow you to enjoy the game with a much cheaper than expected beer and hot dog.
• Sick and tired of paying over $10 for a movie ticket? The summer is a perfect time to take advantage of matinee prices at your town’s movie theater. In my area prices are typically 50% less than they would be during peak times. Not only do you save money on the ticket but the crowds are nonexistent, the floor and seats are still clean and you can escape the heat of summer for a couple of hours for a modest price.
• Don’t want to spend a fortune to enjoy the outdoors? Go fishing with your kids! Rods and reels can be had for less than $20 and fishing licenses are typically not needed for minors. All it takes is $2 worth of worms (can be collected yourself if you really want to save some cash) and you could have a blast teaching your kid about fishing and enjoying a nice sunset together.

Readers, what have you done all summer with your kids? Did you even consider your budget when picking plans and if so what activities did you chose?

Preferred Financial Services is a debt reduction firm certified by the CFC (Center for Financial Certifications) and accredited by U.S.O.B.A. (United States Organizations for Bankruptcy Alternatives). Headquartered in Andover, Massachusetts, Preferred Financial Services has been a leader in the debt reduction industry since 2003. Preferred Financial Services has acquired some of the best experience in the industry over the past 7 years. In 2009 alone Preferred Financial Services reduced over $16.5 million worth of consumer debt for just $6.4 million, for a savings of about 60%- and over 2,900 accounts were settled on behalf of their clients.

For more information, please visit www.pfsdebtrelief.com or follow us on our blog at www.pfsdebtrelief.com/blog/ .

Contact:

Stephan Tavernini

Marketing Coordinator

Certified IAPDA Debt Arbitrator

Preferred Financial Services

stavernini@pfs1.net

Share on Facebook

Personal Finance

Andover, Massachusetts August 19^th, 2010 – As if there wasn’t enough pessimism in the markets already, the Labor Department today reported that last week new jobless claims rose to a 2010 high of 500,000. This is 12,000 more than the week before and indicates that businesses are still trimming their payrolls while they wait to see if this economic recovery is real or if it was just a short pause before the next recession.

The new yearly high is significantly below the recession high of 650,000 but is also way above the 400,000 that is needed to significantly cut the unemployment rate and put Americans back to work and on a path to growth and prosperity. Government stimulus funds are drying up and the housing sector continues to be weak which is why construction has been particularly hard hit over the past 6 weeks. On top of that state governments continue to trim their payrolls as deficits continue to mount. While all this data may seem to indicate that we are definitely going to enter a recession again shortly it is important to compare these statistics to past recessions and recoveries. What we find by looking at the past two recession in 1991 and 2001 is that this is not unusual. Both of those recoveries experienced a similar rise in claims but eventually fell.

While this data is not as dire as it may seem it certainly indicates that the recovery will continue with very little job creation in the foreseeable future. The private sector has been struggling to add jobs throughout the recovery and until the private sector becomes more confident in the recovery we can expect to see stubbornly high unemployment to continue.

Preferred Financial Services is a debt reduction firm certified by the CFC (Center for Financial Certifications) and accredited by U.S.O.B.A. (United States Organizations for Bankruptcy Alternatives). Headquartered in Andover, Massachusetts, Preferred Financial Services has been a leader in the debt reduction industry since 2003. Preferred Financial Services has acquired some of the best experience in the industry over the past 7 years. In 2009 alone Preferred Financial Services reduced over $16.5 million worth of consumer debt for just $6.4 million, for a savings of about 60%- and over 2,900 accounts were settled on behalf of their clients. 

For more information, please visit www.pfsdebtrelief.com or follow us on our blog at www.pfsdebtrelief.com/blog/ .

Contact:

Stephan Tavernini

Marketing Coordinator

Certified IAPDA Debt Arbitrator

Preferred Financial Services

stavernini@pfs1.net

Share on Facebook

Financial News