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Andover Massachusetts, January 4^th, 2011 – A lot of press coverage has recently been given to the rise in personal bankruptcies that has occurred in the US over the past 2 years. Well, data that was released over the past few days proves that this is in fact happening. In 2010, over 1.5 million Americans filed for bankruptcy, an increase of 9% from 2009. Keep in mind that the personal bankruptcy laws changed dramatically in 2005, so any data collected before that point can not really be used to gauge how prevalent bankruptcies are now compared to then.

Before 2005, it was much easier for consumers to file for bankruptcy and clear their debts with little to no sacrifice on their part. Sure, their credit rating would plummet and many assets would be seized, but the rebound period was extremely short and the ability to file for bankruptcy again within a short time frame was still there. Congress acted due to these problems with the system, and the new personal bankruptcy process is much more stringent and does not allow for more than two filings within a 7-10 year period. This has made bankruptcies a lot less appealing to consumers and forces them to really consider all the ramifications that go along with the process.

So what does this all mean for 2011? Well, most experts predict another record setting year for bankruptcy filings. The continued real estate market weaknesses as well as the ongoing long term unemployed problem means more and more people are running out of options in regards to their finances. In fact, I even expect to see an up tick in the number of seniors filing for bankruptcy as they were decimated by the stock market collapse and did not have enough secondary savings to support their retirement lifestyle.

Readers, is bankruptcy your last option? Remember, we here at PFS work to make sure you don’t have to file for bankruptcy. The consequences will not only be felt in your wallet. Bankruptcy filings are a public record, and many job opportunities will not be available to those who have a bankruptcy filing on their credit report.

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Andover, Massachusetts December 29th, 2010 – Unemployment applications reached a new 2 year low last week and dropped below the all important 400,000 mark. For the week ending December 26th, 388,000 Americans filed for unemployment insurance, a drop of 34,000 from the previous week. This is the lowest it has been since the summer of 2008, before Lehman Brothers collapsed and the economy really took a turn for the worse. This was a much larger than expected drop and was certainly helped by seasonal hiring that usually spikes around Christmas time. These numbers are great but need to be looked at in combination with other figures released today. Weekly claims figures are extremely volatile so the 4 week average is commonly used to reduce this volatility. This figure dropped to 414,000, also the lowest it has been since the summer of 2008. As we end the year, this is great news but it is vital that these gains are not taken away once seasonal workers are let go. The next month will be critical to see if the job market really turned the corner or if this drop was entirely due to seasonal workers taking advantage of the temporary openings that open each Christmas season. Stay tuned for the December Employment report which is due to be released during the first week of January. It will provide a clearer picture of the job market and according to experts should show an increase in hiring and a drop in the national unemployment rate.

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Andover, Massachusetts December 29th, 2010 – If you are one of the millions of Americans that still regularly uses the Postal Service to keep in touch with people and to pay bills, there is some relief coming your way in the New Year.

Over the past decade the USPS has raised their postage rates on a more frequent basis as their budget woes continue and mail volume continues to decline due to the increasing popularity of Email. As a result of these increases, consumers have been left in the cold when their stamps suddenly were not worth enough to pay for postage. In response to this dilemma and continued consumer outrage at all the stamps they bought that now are useless, the USPS will begin introducing new stamps in 2011 that will be “Forever Stamps”.  Not only that, but all future stamps will also be “Forever Stamps” which means that any stamp you buy starting in 2011 will be capable of sending a letter no matter when you use it.

“Forever Stamps” were first introduced in 2008 and have been extremely popular, raising over 12 billion dollars in revenue since their debut. With this new program the post office hopes to simplify the cost structure and make sending mail a more consumer friendly experience once again.

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Andover, Massachusetts December 23rd, 2010 – As 2010 comes to a close and we look forward to a better 2011 a couple of bits of news came out today that could affect your financial health in the New Year. Unemployment claims, gas prices, and factory orders all were reported on today and should not be ignored.

Gas prices continue to rise as demand picks up, the dollar remains weak, and prices for crude oil continue to rise. Average gasoline prices exceeded $3 this week for the first time since late 2008. This important barrier has been breached after a 4% rise over the past month. Prices are 16% higher than they were a year ago and with the onset of winter many experts are predicting these prices to continue to rise. The highest price outside of Hawaii was found in California at $3.27 a gallon and the lowest price was found in Colorado at $2.75.

Unemployment claims continued a long term downward trend as they dropped another 3,000 last week to 420,000. The rate has been stuck between 400,000 and 500,000 for over a year now but for the past three months has been trending down. Economists know that this rate needs to get below 400,000 to have an effect on the national unemployment rate. Let’s hope we can reach that as early as possible in 2011.

The last report that was released this morning reviews the nation’s factory output in November. Orders for long lasting manufactured goods rose not counting airplanes rose 2.4% last month. This is the largest increase since March and ignores airplanes as the transportation sector which includes autos as well is extremely volatile on a month to month basis. This increase in orders gives hope to many who expect hiring to go up as well as factories try to meet the demand of the rebounding middle class.

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

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Andover, Massachusetts December 22nd, 2010 –  As the economy rebounds and people start to regain faith in the US economy, the amount of credit being provided by creditors to consumers is increasing as well. The latest data being provided by the Federal Reserve for October indicates that not only are student loans on the rise but auto loans are also becoming more available as auto sales rebound and lenders relax their lending rules.

Consumer credit rose in October at an annual rate of 3.4 billion dollars, the largest increase in over two years. While this is certainly good news, much of the credit can be attributed to the federal government becoming the primary lender for student loans in the nation. Recent financial reforms have removed private lenders from the equation which means students now must rely on the federal government for their student loans. While student loans made up the largest part of the gain, auto loans are also increasing in number and value as Americans start to spend their hard earned money more frequently again. Not only that, but consumers with less than desirable credit scores are starting to see auto loans become more available to them. Auto loans going to sub prime borrowers increased by 8 percent in the third quarter which shows that creditors are loosening their lending standards and giving access to credit for the most risky consumers. Without easy access to credit, the US economy will remain fragile as consumer spending makes up the vast majority of the nation’s GDP.

While all of this good news is great for the long term outlook of the US economy, revolving credit which includes credit cards continues to see weakness. As the recession took hold in late 2008 and Americans started to become more frugal credit cards took the biggest hit. Consumers realized that without a steady job or the security of a permanent job they could not afford to keep sky high balances on their cards. As such, revolving credit dropped for the 26 consecutive month in October by 8.4%. While experts don’t expect this key market to rebound in the near future, any increase whatsoever will be a clear indicator that Americans as a whole are turning the corner and starting to believe in the recovery that now has been going on for over a year.

Readers, have you cut back on your credit card debt as well? Are you seeing a decline in the number of offers you are receiving in the mail from creditors?

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

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Andover, Massachusetts December 15th, 2010 –  Inflation has been a topic of concern for policy makers and economists nationwide since the economic collapse occurred in late 2008. Before analyzing where inflation could be heading, let’s take a look at what inflation is and what causes it. Inflation is a rise in consumer prices, so if a certain TV costs $500 this year and was $450 last year, then there is inflation occurring. A strong and vibrant economy has inflation, when consumer prices are not rising it means there is no economic growth that would cause demand to increase and thus prices to increase. Inflation that is too great however can severely harm the economy, while a state of falling prices, deflation, can also mean bad news for the economy.

The latest figures released by the government indicate that prices continue to rise, but at a very slow pace. The Federal Reserve has stated that it would like to see inflation approach 2% in the near future and then hold steady, as this would be ideal for future economic growth. Over the past 12 months ending in November, the Consumer Price Index, one of many measures of inflation being tracked by the government, increased 1.1%. This index includes everyday items including food and energy related goods. Excluding these two volatile features, the core CPI only rose .8% over the past year. Remember, if prices don’t rise, it means that demand is lacking and the economy is heading in the wrong direction. While a .8% increase is better than deflation, it still signals that there is a chance that deflation could be in our future. While recent news reports have said that policy moves being made by the Fed will lead to rapid inflation, respected economists nationwide insist that the real threat in the near term to our economic health is deflation. If prices were to decline for an extended period of time, consumers would put off purchases while prices fall to get the best deal. This drop in demand would affect business and increase unemployment. With more people out of work and not making any money, demand would continue to fall and a vicious cycle would begin. This is what Japan has been battling for the better part of 20 years and is a scenario that the US government wants to avoid at all costs. Due to this, the recently announced policy of Quantitative Easing, or treasury purchases by the Fed to increase the money supply, should lead to an increase in inflation. The question remains however, at what point will the Fed decide to lower the money supply to contain inflation and will it be too late by then?

Readers, this is an extremely interesting and complex topic. Where do you stand on it? Do you see prices rising in your neighborhood while your paycheck remains the same?

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

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Andover, Massachusetts December 10th, 2010 – As the year winds down and we get ready to celebrate Christmas, Congress is hard at work trying to prevent the largest tax increase in living memory. The tax cuts enacted under President Bush in 2001 and 2003 are set to expire at the end of the year and this means every income class will be seeing a significant increase in their income tax rates. To prevent this, both sides of the aisle in congress and the President have been hard at work trying to find a compromise between helping those in need and ensuring that no American will see a tax increase during this fragile economic recovery.

While this seems like a cut and dry issue, the work that had to be done to reach the compromise that was announced on Monday was extensive. The left did not want to continue tax cuts for the rich as they feel like the extra $700 billion dollars that this would add to the deficit would not be worth it. The right was very adamant that no American, especially those that create the majority of jobs in the country should be faced with a tax hike come January 1^st. So how did all of this get settled? Politics as usual. Both sides had to give in a bit and thus we should see this compromise pass in the lame duck session of congress over the next 2 weeks. Here is a brief list of all the important parts of the legislation.

1. All income tax rates will continue at their present rates for the next two years. The president and the Democrats in congress had to compromise here and allow the rates for those earning over $200,000 a year to remain in place. While the effects of this can be debated, from a political standpoint it makes sense not to outcast one group of Americans, especially those that will be creating jobs and investing their money in the recovering economy.
2. An extension of unemployment benefits for another 13 months on top of the maximum now of 99 weeks. Many of the long term unemployed would have seen their benefits end over the next two months, and Democrats insisted that we could not ignore these people during these tough times.
3. An estate tax rate of 35% for two years for estates worth over 5 million dollars. The rate this year was 0% but was supposed to go to 55% on estates worth over 1 million dollars next year. Republicans wanted this tax eliminated entirely but the cost of doing so both economically and politically was too great so they agreed on this lower rate for 2 years.
4. A reduction in the social security tax rate from 6.2% to 4.2%. This will benefit every working American as they will see a smaller deduction each pay check. Increases in the Earned Income Tax Credit, child credit and tuition credits – originally adopted as part of the 2009 economic stimulus package – also would be extended.

The final price tag of this bill, about 855 billion dollars, which ironically enough is almost as much as the original TARP bailout bill cost. Its ironic because Republicans have been adamant that we couldn’t afford that bill, so what has changed? As for Democrats, they backed down on their campaign promises from 2008 to not extend tax breaks for the rich. Either way, this compromise is not loved by either side but is needed to bring stability to the economy and protect Americans from a large tax spike on January 1^st.

Readers, where do you stand on this issue? Should tax rates be extended for all? Should unemployment benefits be extended again for close to 3 years in total?

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

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Andover, Massachusetts December 8th, 2010 –  Cyber Monday, a term that was not even invented until 2005, has now become the largest single shopping day of the year. In fact, initial data suggests that this years Cyber Monday was the first time ever that over a billion dollars worth of merchandise was sold in a single day. These numbers are absolutely stunning when you take into account that the tradition of shopping the Monday after Thanksgiving has only been around for 5 years.

Retailers wanted to create a new shopping holiday in the aftermath of what used to the biggest shopping day of the year, Black Friday. However, as the lines became ever longer and opening times moved up earlier and earlier, more and more consumers were looking for a more stress free and relaxing way to shop. Internet shopping has evolved to the point where almost every major retailer allows you to purchase anything they sell in the store online. Thus, Cyber Monday has become the day when people who were away over the holiday weekend or who didn’t want to shop with the masses on Black Friday could make their super saving purchases in peace. Over 90% of retailers offered some sort of Cyber Monday promotion this year, a nearly 20% jump in the last 3 years.

While Cyber Monday itself will continue to grow and become a larger part of our culture, the simple fact that online shopping in general has blossomed into a huge part of the consumer culture guarantees that any day can potentially become the next Cyber Monday. All it will take is a group of dedicated and smart marketing executives at a large retailer to create a new “shopping” holiday. As this is a personal finance blog, remember, just because it is easy to shop online doesn’t mean it is pain free. Everything you charge to your credit cards will have to be paid off at some point, so be smart and on the lookout for the best bargains before you venture online for your holiday shopping.

Readers, how was your Thanksgiving shopping experience? Did you avoid Black Friday and take advantage of the Cyber Monday deals this year?

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

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Andover, Massachusetts December 3rd, 2010 –  Well, it seems as if every time we think the economy is ready to roar back to life we get another dose of bad news. The Labor Department released its initial November Jobs report and the numbers, while positive compared to where we stood a year ago or even 6 months ago, were well below expectations and a sharp drop compared to October. The economy added 39,000 jobs last month, with 50,000 coming in the private sector and a net loss of 11,000 in the government sector. Expectations were for close to 150,000 total jobs added and were boosted by the great results from October when 172,000 jobs were added.

The disappointing aspect of this report is that it comes on the heel of weeks of positive news. Retail sales are up, Black Friday and Cyber Monday saw record sales, and even car sales are surging again. A side note to these figures is that typically November employment numbers are extremely volatile. As such, most experts expect a rather large jump in December. But anyway you look at it; these numbers are a clear disappointment for the economy. While most factors point to a continued recovery, it will remain a slow one as long as people are not confident in their ability to hold on to their existing jobs or finding new ones. As a byproduct of this announcement, we should expect a stronger push for an extension of jobless benefits. If you have followed my blog for a while I have discussed the pros and cons of this before. Where do you stand on this issue?

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

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November 30^th, 2010 Andover Massachusetts – Well I hope all of you had a wonderful Thanksgiving and enjoyed the holiday with family and friends. As most of you know, the Friday after Thanksgiving as well as the Monday after are both considered huge shopping days for Americans and both days were followed closely by economists to see where the American consumer stands heading into the crucial Holiday shopping season. Thankfully, the data so far suggests that consumer spending rebounded strongly from last years lows and data released today suggests consumer confidence continues to rise as the job market improves and spending by consumers continues to rebound after the past two years of disappointing sales activity.

To begin with, Black Friday retail numbers were strong across the board as consumers not only shopped more but also purchased more discretionary items such as jewelry and high tech entertainment products. Overall spending on Friday increased .3% compared to 2009 while traffic at stores nationwide increased by 2.2%. For the weekend as a whole, 212 million Americans visited stores between Friday and Sunday; this is up from 195 million the year before. Average spending also increased by $22 to $365. Perhaps the most encouraging sign for retailers and economists nationwide is the continued surge in online shopping. Overall online spending is up 13% compared to last year, which is a much higher growth rate than shopping in general. What this means for retailers for the next 30 days is that while store numbers may not increase as much as expected, online sales could more than make up for any weakness in traffic numbers retailers could face.

What is driving all of these positive numbers over the past two weeks? Consumer confidence in the economy is improving and reached a new 5 month high in November. It rose 5 points since October which is double what was expected. This confidence boost is driven by a multitude of factors including the job market, Wall Street, as well as the political changes that have occurred in the country since early November. Wall Street continues to see strong corporate profits which have boosted the stock market above 11,000 again. This has improved the retirement outlook for millions of Americans which has allowed them to be more willing to spend their hard earned cash on consumer goods again. The job market is also improving as most experts are predicting a rebound in corporate hiring in 2011 due to the continued strong results being achieved this year. Politically, the election of a republican majority in the house as well as a strong republican minority in the senate should slow down any new regulations or laws that are being debated. Generally, the economy performs best when Washington does the least, so this political gridlock should lead to less regulations coming out of Washington and thus more certainty for businesses to grow and expand their operations over the next 12 months.

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

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