Preferred Financial Services

Andover, Massachusetts December 1st, 2010 –  If you are like most Americans, you have at one time or another flipped through the channels and ended up on one of the two most common home shopping networks, QVC or HSN. Both have the same general format where vendors use the channel to present their goods to you and thus are able to reach hundreds of thousands of dollars at a relatively cheap price point. It is certainly less expensive to sell a good on QVC than it is to open a physical store, hire staff, and run the daily operations of a retail location. These are all pros for why the home shopping network is great for business owners, but what has it done for the average consumer? For most, home shopping has become a convenient way to purchase goods that they would otherwise have to drive around all day to find. But, much like most new convenient inventions, home shopping also makes it much easier for consumers to purchase items that they do not need on credit and thus placing them deeper and deeper into debt.

There are countless cases where consumers became “addicted” to the home shopping experience and thus end up in huge amounts of debt. Since the purchase can be finalized without ever even leaving the couch, home shopping is particularly dangerous to consumers who already have personal finance issues and debt problems. It takes a lot more effort to go to the bank, get cash, and then drive to the store and find the item you want to buy than it is to pick up the phone and call in an order after seeing the item on TV. These home shopping networks have also created products and services that have made it even easier, and more costly, for consumers to indulge in this shopping experience.

1. Paying through installments. Ever notice how the price of a product is typically given in a monthly payment? This is because these vendors know that a consumer is more likely to purchase a good if they know they can afford the monthly payment. It is a much easier sell to say a monthly payment of $50 than it is to say a lump sum payment of $500.
2. Costly Credit Cards. Like almost every other industry, the home shopping industry has created its own credit cards, which typically give some sort of perk to shoppers. While that is great, the cards are typically not the best with average interest rates much higher than bank issued cards. Remember, every time you open a new line of credit, your credit score takes a small dip.
3. Auto-Delivery. This is the one feature of certain home shopping products that I find to be the most damaging to consumers. Many of the products you can buy on television have this auto-delivery feature built in. It automatically ships more of the item to the consumer each month and charges their credit card automatically. By doing this, the vendor builds a continuous stream of income which is a huge boost to their bottom line. For consumers however it is much too easy to forget to cancel the offer and thus many end up paying for goods or services that they no longer need. Be extremely wary of any auto-delivery feature and find out how to cancel the product while initially purchasing it.
4. Remote Control Purchasing. The natural extension of shopping over the phone, new inventions in the TV industry now allow consumers to purchase an item on TV by just clicking a few buttons on the TV controller. Consumers need to be wary of using this service, as the easier it becomes to shop, the more likely it is that Americans will spend money on items that they don’t need and can’t afford.

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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Personal Finance

Andover, Massachusetts November 17^th, 2010– A mortgage is the largest single financial commitment most Americans will make in their lives, so naturally it is extremely important that consumers know the ins and outs of mortgages and what mistakes to avoid when applying for one. The entire process is extremely complicated and to an uninformed consumer can seem overwhelming. While it is impossible to teach everything there is to know about a mortgage contract, if you avoid the following 6 mistakes when it comes to applying for a mortgage you will be saving yourself a lot of headaches and financial problems in the future.

1. Adjustable Rate Mortgages: While these types of mortgages were extremely popular over the last decade due to their low costs for the first few years of a mortgage, the current real estate crisis can be partly explained by these ARM’s. ARM’s allow consumers to purchase a larger house and have lower payments at the beginning of the loan compared to a traditional mortgage. The way this works is that the interest rate is initially set low so consumers can afford to buy that larger house. After 2 to 5 years, these interest rates then reset to the current market rate, which is typically much higher than the initial interest rate that consumers had been paying. The danger here is that many consumers can not afford these new high rates when they reset which is why we are in the situation we are currently in where thousands of homes are being foreclosed on because the monthly payments have become too much for many borrowers.
2. No Down Payment. The idea of purchasing a home without a down payment is a fairly new phenomenon. In the past, consumers generally tried to pay for at least 20% of the homes value in cash at the time of signing. But as homes became ever more expensive and credit became increasingly cheaper the down payment has become more of a choice rather than a requirement. While this has certainly changed over the past two years, down payments are still not seen as something that should be maximized. The more money you can pay upfront the less you will have to borrow from the bank. What this means for the consumer is tens of thousands of dollars in savings due to the interest that accumulates on the loan. As an added bonus, homeowners who pay at least 20% at closing do not have to purchase PMI (Private Mortgage Insurance), which can save some more money each month for the homeowner.
3. Liar Loans. While these became popular in the run-up to the housing meltdown in 2007, Liar loans have not and probably will not be popular moving forward. While it is not cheating the system, liar loans allowed people who did not have the means to support a mortgage to get one. Liar loans are loans that require little to no proof of income, assets, or employment. Basically, during the height of the housing bubble, banks were willing to lend money to people without first checking out their finances. While this allowed millions to own homes for the first time, it also allowed people to lie about their income and employment. This allowed consumers to live in homes far larger than they should have purchased and which has caused this most recent housing crisis to be much more worse and long lasting than previous real estate crashes.
4. Longer Amortization. Who wouldn’t want the lowest monthly payment possible when it comes to their homes? The less money they have to pay each month, the more cash they will have each month to spend on other items in their budget. The problem with this approach is that the only way to make the monthly payment lower is to extend the length of the loan. Extending mortgage terms as long as 40 years might offer you increased monthly flexibility but it also means you will be paying tens of thousands of dollars more by the time the loan is paid off. The shorter your mortgage is the less total interest you will be paying. Keep this in mind before a realtor suggests a 40 year mortgage so you can get the home that is clearly out of your price range.

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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Personal Finance

Andover, Massachusetts November 15th, 2010 – Since the financial reform bill was passed earlier this year Credit Card companies and banks have been scrambling to find new ways to generate revenues from their existing and new customers. Many of these companies complain that the new rules are actually hurting consumers since they have to increase fees for everyday services such as check cashing or even opening a new checking account. However, the law has clearly taken great steps to protect consumers from predatory and unfair business practices that generated  millions of dollars in profits for the Financial Services industry. This makes it even more enticing and convenient for Americans to get new credit cards, so it is important that consumers understand some of the industry terms that are used by this industry. Below is a list of 5 terms that are extremely common in the industry but that are often times not understood or misinterpreted by consumers.

1. 0% APR. Be extremely wary whenever you see a 0% APR interest rate being advertised by creditors. Credit Card companies can’t offer permanent 0% APR because then they would not make any money through interest fees and finance charges. Remember, those 0% APR rates you see are always only temporary, most lasting between 3 and 6 months. After that, your rate will rise to an average above 14%, which will make a huge difference in your monthly payments.
2. Low APR. This extremely vague term is many times mentioned as the interest rate that becomes active after the introductory 0% period. However, what exactly does low mean? For consumers, 1%, 2% even 3% is most likely what they consider low. For creditors, low means somewhere in the middle teens so beware when you see advertisements proclaiming a card with a low APR.
3. You’ve been Pre-Selected! Don’t let these words get you excited about a new “Credit Opportunity”. Creditors send out millions of credit card applications each year based on a range of credit scores that they deem worthy of their product. If your score falls within this range you will receive an application offer. It does not mean you were hand selected or are eligible for the card, all it means is that your score qualified you to get an application.
4. 0% Fraud Liability. If you report your card missing before it’s used by a thief, you already have 0% fraud liability. You’re protected under many federal laws. You’re liable for up to $50 if your card is used before you report it. So if the credit application is advertising fraud liability protection, it’s not as big a bonus as it sounds.
5. Helps Build Credit. The informed consumer will realize that this is just advertising a service that almost all unsecured credit cards offer. Almost all unsecured cards and their activity is reported to the 3 credit reporting agencies in the US. Responsible use of a card will help you build your credit and improve your credit score over time. The only time this headline should be noticed is if you are looking for a secured credit card. Not all secured cards are reported to the bureaus, so if you are looking for this type of card make sure to request that your credit card activity is reported to the credit bureaus.  

Readers, have you fallen for any of these catch phrases? Have you changed your habits because of these deceptive terms?

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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Personal Finance

Andover, Massachusetts November 12th, 2010 – In the latest blow to the legitimacy and neutrality of the BBB nationwide, the outgoing Connecticut Attorney General Richard Blumenthal has questioned the fairness of its grading system and how it treats member and non member companies. After an extensive internal investigation, the AG found that the BBB rewards member companies with higher grades compared to non member companies. The grading criteria, updated in 2009 to resemble a report card, includes factors that only member companies can score well on. For example, a member company receives points just for being a member, which seriously throws into doubt the claim that the BBB is a consumer advocate organization that is impartial and neutral in its observations and reporting of private businesses. The AG went on to urge the BBB to fix this unfair business practice by either removing the link between good grades and membership or by announcing to consumers that member companies are given an extra boost when it comes to their BBB grade.

While this may seem bad enough, the BBB is also dealing with a recent ABC news program which investigated the BBB practices in California. This undercover campaign found that BBB affiliates in the greater LA area were giving out A+ ratings to companies that paid a $395 annual membership fee. This A+ grade was given out without any review of the firm or its business practices, a clear indicator that the BBB might not be in the business of protecting consumers.

So what does this mean for consumers? Basically, it means that the BBB is not the final word when it comes to grading businesses and their treatment of consumers. There is no final authority when it comes to this, a consumer needs to be aware of this and research more than one source. Every firm has complaints, from the smallest to the largest, consumers should find out how they handled those complaints. That is the best way to determine if a firm is worthy of your business.

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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Financial News, Personal Finance

Andover, Massachusetts November 11th, 2010 – Have you ever Co-signed on a loan? Are you the beneficiary of someone Co-Signing on a loan for you? As banks and other creditors continue to tighten their lending standards as a result of the economic recession of the past 2 years, Co-Signing is not only becoming more common but also is being required of certain consumers such as those with limited income or those under the age of 21. New Credit Card regulations and stricter lending practices both have increased the number of credit applications that include a co-signer. 

Before you take the step and Co-Sign on a loan/credit card, you need to understand both what it means to be a co-signer as well as what it can do to your personal finances if the loan in question does not get paid back on schedule. Co-Signing on any line of credit makes you responsible for the debt in the event that the primary debtor can not or will not make payments anymore. By signing your name on the loan application, you are guarantying the loan so if the primary borrower misses a payment or just stops paying all together it will impact your credit. This is why Co-Signing on anything is such a huge decision. If you can’t trust the primary borrower 100% then you should not Co-Sign on the loan. Although you can never be sure of anyone in this world, make sure that if you do Co-Sign on the loan that the borrower realizes what a huge commitment this is for you. Don’t let this decision be taken lightly and emphasize to the borrower that you are on the hook for this loan just as much as they are.

Co-Signing on your child’s first car or credit card can be a beneficial move for them. For many young adults getting credit is next to impossible because of the generally lower income levels and the limited credit history which creditors can use to confirm a persons personal finance habits. If you review and discuss the opportunities and risks associated with Co-Signing, there is no reason why it should not benefit both you and your child.

Readers, have you co-signed for a loan or credit card and suffered as a result? What happened? Maybe we could discuss some ways to minimize the risks if we could see some examples.

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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Personal Finance

Andover, Massachusetts November 8th, 2010 – Credit Scores. A term that is thrown around and discussed all the time in personal finance circles but one that is not really understood. The majority of Americans don’t understand how the score works which is why their score is typically much lower than they expect. Did you know that even if you pay your bill in full on time each month your score could still be going down? If you have too many open lines of credit or if you are using more than 30% of your credit limit on any account you could be losing points on your credit score without even realizing it. Because of this, myths about how scores are calculated and what score is needed to get the terms you want are widespread and all over the place.

Before the economic meltdown of 2008, a credit score above 680 was enough to qualify for the best interest rates available. While this score did indicate that you paid your bills on time most of the time, it did include certain negatives such as using too much of your credit or applying for multiple lines of credit in a short time period. After banks and other lenders pushed cheap credit onto sub prime borrowers in the years leading up to the crash, the standards by which lenders evaluated credit applications changed. A 680 that used to be considered good enough is now seen as a liability. In fact, most of the best rates you might want including the best rates on new car loans are now reserved for scores above 720. What this means from a practical standpoint is credit is becoming more expensive for the masses. Falling into that lower category could cost you hundreds of dollars over the life of your car loan as well as thousands of dollars over the life of your home mortgage.

While this may seem unfair to most, lenders use these scores to see who is most likely to repay their loans. Consumers who had scores below 720 over the past decade have shown to be less credit worthy than originally expected, and thus banks have been forced to revise their lending standards to better match the current market conditions. The good news however is that this is not permanent a shift in lending practices. While lending standards will remain high as long as credit is hard to come by and the economy remains weak, once the markets recover and grows lending standards will become more lax as demand will pick up. This is what created the first bubble, and if history is any indication of future results, we should see a return to cheaper credit as soon as consumer demand for debt picks up again.

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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Personal Finance

Andover, Massachusetts November 3rd, 2010 – Marriage is a monumental moment in every adults life, and the changes that come with this step are huge. Everything from living accommodations to how you spend your free time changes once you marry your significant other. With the economy being the top concern for most Americans and marriage rates at all time lows for America’s young adults, it is important to discuss and plan out a few important financial issues before tying the knot. The following list includes certain broad Personal Finance topics that each couple should discuss to see where compromise is needed and where common goals are already shared.

1. Bank Accounts. This is a subject that used to be a moot point in traditional marriages. In the past, bank accounts would be merged and that would be the end of it. But, in today’s America where it is quite common for both spouses to have productive and lucrative careers, many engaged couples are finding the issue of how to deal with separate accounts challenging. Should all accounts be merged or should each keep a separate account as well as opening one joint account? It’s a personal decision, but from a logistical stand point, having at least one joint account makes it much easier to keep track of expenses that are shared by both parties.
2. Housing: Do you or your spouse have bad credit? If so, the issue of buying your first home together could become really troublesome. If your score is significantly higher than your spouses, you might have to consider owning the mortgage solo to take advantage of the better rates that will be offered to you versus a joint application.
3. Spending Plan: If you haven’t had a budget while single now might be a good time to create one for your future combined household. A personal budget is the building block of any sound and successful financial plan. Figure out what you earn and spend each month, and then go through this list to see where waste can be eliminated or where income can be increased.
4. Billy Paying. This again is a generational shift that is occurring. In the past when only one spouse typically worked a full time job, the stay at home partner would handle all the bills. With today’s culture that expects both partners to work, the question of who runs the homes finances is front and center. While it may be beneficial for one to still handle the majority of the bills, the other partner should still be aware of what bills are being paid and where the couple stands financially.
5. Financial Goals. A constant in most Pre-Marriage counseling sessions, a couples financial goals need to be out in the open and accepted by both partners. Compromise might be needed here, but make sure your long term goals are being respected by your significant other.
6. Debt. This is a topic that needs to be discussed by each couple prior to marriage. Surprising your spouse with $100,000 in student loans on the day of your wedding is not the best way to start your life together. Make sure each partner understands what baggage is being brought into the marriage and figure out a plan to eliminate this debt as quickly and as efficiently as possible.

Readers, any other financial tips for soon to be couples? Do you agree with the ones listed above? Have you had issues during your marriage about any of these topics? Let us know and maybe you could help someone just starting out in their marriage make it a smoother ride!

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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Personal Finance

Andover, Massachusetts October 29th, 2010 – Every person fights a constant battle against the consumer mentality of this country. If your neighbor has a new car, you might feel society’s pressure to purchase a new car for yourself. This phenomenon is often referred to as “Keeping Up with the Joneses”. This is just one trait of our “Buy Now” mentality, and the following list includes 6 money pits or habits that will make you go broke if you are not careful.

1. Window Shopping. This should be an obvious one, the more time you spend looking at goods you want to purchase, the more likely you are to actually make those purchases. This habit has only gotten more expensive over the past decade as virtual window shopping through online retailers has allowed millions of Americans to spend money they don’t have without ever leaving their cozy homes.
2. Saving Your Info with Online Vendors. An add on to the previous item, whenever you have your checkout information saved by a vendor it makes it that much easier for you to make a purchase. Don’t have a wallet handy or a credit card within reach, no problem since all your information is already stored online. It’s the ultimate way to make purchases you don’t need without having to do anything except click a computer mouse!
3. Carrying Lots of Cash. Just as having to many credit cards can lead you to overspending, carrying around excessive amounts of cash can lead to the same problem. Studies have been done that show money that is carried around in a wallet or purse is much more likely to be spent than money that is left at home or in a bank. Basically, don’t carry around more cash than you absolutely need each day. The less you carry around, the less you can spend!
4. Clipping Unneeded Coupons. Much like carrying to much cash, clipping coupons for items you don’t need invariably leads to more spending than you would have done without the coupons. So while you may be saving 10% on your purchase, you are still spending more money because your purchase is 30% larger than it should be.
5. Shopping with Emotions. Whenever people go shopping for a reason other than for necessity money will be wasted. Consumers who go and shop because they are having a bad day or to reward themselves for a job well done will not only spend a lot of money, but typically they will purchase goods that they don’t need. Emotions can be a powerful factor when shopping, so make sure you aren’t shopping for the wrong reasons.
6. Not Planning Ahead. This is a tip I have mentioned before when it comes to grocery shopping. The better you are at planning your week’s expenses, the less likely you will be to waste money on unnecessary or expensive items. If you don’t plan your grocery shopping in advance, you will most likely order out or eat in a restaurant on a weekday because you will not have the time to go shopping after a busy day of work. Surveys have shown that the typical American family spends over $4,000 a year on eating out, imagine if you invested $3,000 of that in a Retirement account and the other $1,000 on a weeks vacation. Isn’t that a better use of your $4,000 than eating Chinese food and Burritos on Friday nights?

Readers, have you been guilty of any of these pitfalls? What have you done to fix your situation or are you just ignoring 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.

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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Personal Finance

Andover, Massachusetts October 26th, 2010 – Almost everything nowadays has some sort of fee associated with it. Websites that charge for content, schools that charge for students to play sports, and even extra fees for texting on cell phones are just the tip of the ice berg. When it comes to your finances, banks and credit card companies continue to come up with new and innovative ways of charging you, the consumer, an arm and a leg. While many expected financial fees to increase after the landmark 2010 Credit Card Act, this has not occurred. While some fees are becoming more common, the following 5 fees should be avoided at all costs and can be done so quite easily and without much effort.

1. Checking Account Maintenance Fees. This fee used to be almost unheard of before the financial crisis when free checking accounts were the norm. While this has changed somewhat in the last two years as banks have tried to increase revenues from their current customers, it should still be something you do not have to pay if you are in good standing with your bank. If they require a minimum in your account, just shuffle some of your funds from your savings to your checking’s account. The interest rate advantages that used to make savings accounts more appealing have all but disappeared as interest rates are at record lows. If you don’t have the funds to shuffle around, shop around, there should still be local banks or credit unions in your area that would love to have you has a client and will offer you a free checking account.
2. Annual Credit Card Fees. While these fees have been around for decades, the savvy consumer has always been able to avoid these fees if they wanted to. Typically annual fees are reserved for consumers who are looking for high end services such as the concierge service offered by some American Express cards or for consumers who have a bad credit history and need to pay to be able to rebuild their credit history with a new card. Either way, if you don’t want to pay for a card, you should be able to find one that doesn’t charge an annual fee. If your current card recently had a fee added onto it, don’t be afraid to call the credit card company and ask them to remove it. If you can make the case that you have been a loyal client of theirs they will most likely waive the fee.
3. Credit Card Payment Insurance. Another product designed by creditors to get as much money out of you as possible while paying out as little as possible. This product offers you the peace of mind that in case you lose your job or for some other reason can’t pay your credit card bills each month that this insurance will cover your monthly payments until you are back on your feet. Sounds great right? Well, the reality isn’t quite that rosy. Typically, these insurance plans have many conditions that need to be met and even then the payouts are not what you think. Almost none of them pay your monthly bill in full, many only pay the minimum amount or a certain percentage of the bill. On top of that, almost all of these plans run out after a certain short period of time. While most people don’t expect to be unemployed or without income for a long time period, the recent recession and ongoing unemployment crisis shows that this isn’t always the case.
4. Lost Wallet Protection. This has to be one of the most ridiculous services being offered by creditors. This “insurance” offers to make the phone calls to your other creditors in case you lose your wallet. Not only is this service a waste of money, but typically you don’t lose dozens of cards. So, can you really not make a couple of phone calls in the off chance you lose your wallet? Save the money each month and treat yourself to a nice dinner or pay down some more debt instead.
5. Credit Report Monitoring. I have written about this extensively in the past and how much of a scam these services are. Most of you have heard the catchy jingles that offer free credit reports on TV. What many of you don’t know is that to get that “free” report, you need to sign up for a credit report monitoring service. Basically this service keeps an eye on your credit report every month and will notify you if something unusual pops up on it. What makes this service unnecessary is the fact that most credit card issuers already do this. This is why your card could be frozen if you travel overseas without advising them of your trip. They already lookout for credit card fraud and you really should not need this quite expensive service. Stay Away!

Readers, have you used these services in the past? Do you disagree with me and actually found some value out of these? Let me know, I could be convinced that some of these services are a good value for consumers!

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 Educator in Personal Finance

Certified IAPDA Debt Arbitrator

stavernini@pfs1.net

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Personal Finance

Andover, Massachusetts October 20^th, 2010 – While there is a small minority that did not feel the pain of the Great Recession, for the vast majority of us it was the biggest economic decline of our lives so far. Due to this, many of the things we took for granted are no longer expected and the way we used to live is not how we are living our lives today. Everything from how we think about Money to how secure we feel in our futures is being questioned and debated, which is a huge change from the boom years of the last decade when any worries about money were extremely rare in the era of cheap credit and huge personal debt. Check out the following list that includes 5 issues or topics where we have changed our views to more closely reflect the economic realities of today.

1. Frugality. This word used to be laughed at by the majority of Americans as it was never “cool” to be frugal and make every dollar stretch as far as possible. But, with record foreclosure rates, high unemployment, and stagnant income growth, more and more Americans are accepting the frugal lifestyle and learning to live without spending a lot of money.
2. Jobs. Well this is an obvious one, if you haven’t been impacted by it yourself I am sure you know of at least someone who has either lost their job or had their hours cut back dramatically. The current job market is by far the worst in recent memory, and all the signs point towards a long and slow recovery in regards to job growth. If you have a job consider yourself lucky, and if you don’t, keep applying, keep educating yourself and don’t give up!
3. The Family. There have been both positive and negative impacts on the family due to this recession. The drop in disposable income means that more and more families are staying in and at home on weekends. This has led to a stronger family dynamic as people are making due with less than in the past. On the flip side, the lack of disposable income also means that new marriages are at a recent low as more and more couples are putting off this life changing event due to monetary concerns. An average wedding isn’t cheap, and many couples are passing on this expense to fortify their emergency fund or to bolster their savings.
4. Credit Cards. Has your relationship with your credit cards changed since the beginning of the recession? If you say yes, then you are in the majority. Industry data indicates that consumers are turning away from credit cards and embracing debit cards more and more. Average balances on credit cards are also dropping and consumer are making a fundamental shift in financial behavior away from debt accumulation and towards debt elimination.
5. Want vs. Need. I love talking about this topic because it is building block for any personal finance makeover. And as expected, this recession has definitely changed how people feel about certain goods and items. Things that used to be considered “needs” such as Cable TV have now become “wants”. Has your behavior changed? Have you decided to live with certain services that you used to consider absolutely necessary to a happy life? Are you less happy now that you don’t have this service?

Readers, I would like to hear how any of these 5 subjects have changed for you over the past 2 years. Are you like the majority of Americans or are you bucking the trend? Leave a post on my blog, anonymous or not. I am looking to create some conversations with all of you to make this a bit more interactive!

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 Educator in Personal Finance

Certified IAPDA Debt Arbitrator

stavernini@pfs1.net

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Personal Finance