Do you know the total credit card debt of the United States population?

793.1 billion dollars.

Now you know. And now you have a sick feeling in your stomach. At least, I do.

Does that mean credit cards are evil? Nope.

It just means people are stupid uneducated.

That’s the problem. Here’s how to fix it…

Step 1: Access the Damage

Sometimes the first step is the hardest and that can definitely be true with credit card debt.

Face your debt.

Run the numbers and actually figure out how much credit card debt you have.

Go ahead and pull your free credit report at AnnualCreditReport.com, then head to Credit Sesame for your free score.

Once you know where you stand, it’s time to move on.

Step 2: Control Yourself

If you are in serious credit card debt, you have no self-control with them.

Easy fix. Stop using credit cards.

You don’t have to cut them up, and you don’t need to close all the accounts, but stop using them until you have paid them off and can pay them off, in full, every month.

You can always lock them in a safe or freeze them in a bowl of water. Or just stop using them and put them away like a normal person, whatever works for you. Just kidding! Freezing them is way more fun. Don’t be normal!

Step 3: Organize Yourself

Now that you know how bad it is, it’s time to do something about it.

Create a budget (learn how here), including all of your credit card payments.

Do you have enough income to cover all your expenses? You may not.

Step 4 can help with that…

Step 4: Cut Your Expenses

Cut. It. Out. (Full House reference, anyone? No?)

What do you need to cut out to eliminate your debt?

You can always cut something. Reevaluate your needs vs. your wants. Especially if one of your main wants is to be debt free.

Step 5: Make Your Choice

Now that you have faced your debt and cut your expenses, you should know whether or not you can fix this yourself or if you need professional help.

If you can do it yourself, do it yourself.

Only get professional help if you don’t see any possible way for you to do it on your own.

If you do need professional help, here is a good resource to find a good debt relief company.

Here is a list of approved non-profit credit counseling agencies.

I think you can do this though, if you think you can too, move on to step 6…

Step 6: Do It Yourself

I knew you could do it.

Paying off debt is easy in practice, but it can be difficult in discipline.

It’s all about discipline.

The most important thing is to not get into any new debt, once you begin paying it all off.

Once you have made that decision, you can call the companies and negotiate to bring the amount of debt down. This is as simple as calling the number on the back of the card, getting to customer service, and asking to speak to a supervisor. Supervisors are able to lower your interest rates more than the customer services reps. They may even be able to lower your balance.

When negotiating, it’s important to have some leverage. Just go find some cards that are offering a 0% balance transfer fee, with a 0% interest rate (usually for a certain length of time) and there’s your leverage. It’s easier to negotiate when you have the option of transferring your balance somewhere else.

The overall goal is to get a lower interest rate.

If you can’t get a 0% interest rate, you may want to transfer your balance. (The Chase Slate card is currently offering a 0% interest rate for 15 months on balance transfers, and no fee to transfer.)

I see no reason not to transfer your balance, if it will save you money overall. The problem is when you are not able to pay off a balance transfer before the interest rate goes up. So, before you transfer a balance, do this:

1. Figure out the total amount of debt your are transferring
2. Divide your debt by the number of low/no interest months
3. Decide if you will be able to pay that much each month

If you are, then it’s worth looking at. If you’re not, you need to figure out if the interest rate will be lower than you’re currently paying or higher. And remember to expect the unexpected. Just because you can make that payment now, doesn’t mean you will be able to make it for a year or longer.

As a side note, I would suggest that you NEVER use a home equity line of credit (HELOC) to pay your debt. That can be an incredibly dangerous plan.

Identity theft is a risk that you face on a daily basis provided that you own a credit card and do business online. Every time you purchase an item online, you expose yourself to this menace. Today, identity theft has been identified as one of the fastest growing crimes in the world and the numbers keep on growing almost on a daily basis. We are all experts when it comes to identity theft not by choice but circumstances. Truth is told, with identity theft, the odds are that: you, your friend or your family member has been a victim of the same.

In as much as identity theft has grown to become one of the biggest American concerns, the subject is often at times misunderstood. We are always looking for ways to fix the problem instead of attempting to prevent identity theft. We should always remain vigilant as we attempt to prevent this. Here are a few things you need to know about identity theft otherwise known as credit card fraud.

1. Identity theft is as real as it gets

Many people think that this crime is a joke therefore most likely not going to affect them. In most cases, with identity theft, it is a matter of when and not if. A film dubbed ”Identity Thief”, which features Melissa McCarthy and Jason Bateman, goes to show you just how pervasive this crime has got. Even with that said, there is no need to lose sleep as yet because the issue is containable.

2. Identity theft criminals will always be one step ahead of you

One thing with online fraudsters is that they are tech savvies who are always looking new ways to con people. As you think of a way to prevent one occurrence, they are already designing new ways to scam you. A report released by Avivah Litan of Gartner Group technologies revealed that less than 1 in 700 identity theft crimes lead to arrests meaning that most of the criminals normally get away with the crime. At the end of the day, we end up being left with a society filled with experienced hackers. These threats tend to evolve quickly to such an extent where before the police are able to handle one old technique, the hackers would have already moved to something new.

3. Your credit card number is not needed for the scam to go through

Contrary to what most people think, hackers do not really need your credit card to steal your identity. They are very experienced and crafty at the same time. At times, they only need one piece of information to complete the puzzle. Once they have that piece of information, they can automatically gain access to the rest of the information. Therefore, the best way to protect yourself would be to lock up your important documents in a safe or better yet in a safe place at home.

4. Personal information revealed online is often enough

As mentioned above, identity thieves only need a piece of your information to scam you. Even if they get your non-financial personal information, to them this is more than enough. As innocent as you may be trying to provide your personal facts on social media or any other channels, this might expose you to identity thieves. The best way of protecting yourself would be to never list your full birthdate, home address, telephone number or any other important information on any social media channel or even a job searching site.

5. Wi-Fi Hotspots can be a threat

We all can agree on just how convenient Wi-Fi hotspots can get. However, this convenience possesses a huge security risk as it can expose you to identity thieves. Always make a point of avoiding generic Wi-Fi hotspots names while in public. The biggest threat is that, once you’ve gained access to these hotspots which is often made easy, the hackers can access every bit of information they want from your phone, computer or tablet. Information such as your password, username, credit card numbers and any relevant data may be at risk.

6. Credit cards have stronger fraud protection than debit cards

You need to take note of the fact that credit card protections offered are stronger as compared to debit card protections. Ideally, the law has it that Credit cards have a set restricted amount that one is liable for at $50. On the other hand, depending on when you report a debit card theft, the card holder is liable for $50 up to the full amount.

7. Military members are highly susceptible

The military men and women are trained in such a way that they are conditioned to provide anything that is asked of them. Throughout their service, they are asked to provide personal information which they normally oblige. The most unfortunate thing about this is that they do carry on with this even after leaving the service. This in turn makes them susceptible to data grabbers and identity theft.

8. New account fraud is on the rise

In this form of ID theft, hackers usually breach databases and end up stealing social security numbers or any other financial information. Then they go ahead to open new accounts fraudulently using someone else’s name. This form of ID theft is currently on the rise and is responsible for nearly half of the total dollars lost to ID theft.

9. Identity theft is becoming increasingly hard to detect

The main reason as to why there is a rise in cases of ID theft is that most of these cases are becoming increasingly hard to detect. In the example of new account fraud, it is hard to detect unless you develop a habit of constantly looking at your credit card report or you use a credit monitoring system.

10. Identity theft cases are not easy to erase

As mentioned above, detecting identity theft is not easy. And when it is detected, it can take up to 33 hours or even more to resolve the case. Once that is done, the recovery phase is even longer as one can take up to months or even years before getting back to the financial state they were prior to the theft.

Credit cards are becoming the go to way to pay. With everyone using credit cards, there has been a growing concern for your safety with using them. How do you know when your credit card information is safe and when it’s not? Is it safe to use credit cards online?

Read on to get some answers…

First off, let me clear something up. Using your credit card online can actually be safer than using it at brick and mortar businesses.

Example: one of the common ways people have their credit card information stolen is at restaurants since servers will often take your card out of site to charge it.

So how can you prevent that?

The first thing you should be doing is watching your finances closely. It’s not overkill to check your banking account online everyday. It’s not the end of the world if you miss a day, but the important thing is that you are always watching what goes in and comes out of your bank account.

A Gateway to Identity Theft

Once people have your credit card information, usually they will just spend your money until the card is locked, but it can actually be worse! They can use it as the first step towards stealing your identity, especially if they got more than credit card information in the first place.

If someone has your credit card information, you usually don’t know how they got it, so you don’t know how much more information they have.

1. Only carry essential documents with you.
2. Keep new checks out of the mail.
3. Be careful when giving out personal information over the phone.
4. Stay on top of your credit.
5. Protect your social security number.
6. Follow your credit card billing cycles closely.

Using Credit Cards Online

Only use websites that you trust when providing any credit card information. Don’t forget to look for the “https” before the website address in the URL box to know that you are on a secure server.

When you are using online banking or otherwise storing your credit card or banking information online, make sure you use secure passwords. If possible you passwords should contain the following:

• Uppercase letters
• Lowercase letters
• Numbers
• Special Characters (ex: ! @ # $ ( ) [ ] )

Use different passwords for every website.

If it helps, you can find a method of including part of the website title in every password so that you can remember them. For example, you could always begin the password with the first letter of the website and end it with the 3rd letter of the website. This way your passwords are different, but you have a pattern for remembering them.

If you keep all your passwords together somewhere, it’s best to write them down on paper instead of keeping them on your computer. When creating passwords, remember: the more complex, the better.

Imagine getting home on Friday night, after a stressful week. You’ve been looking forward to this moment all day. All you want to do is just throw some sweatpants on and just veg out on the couch. You turn the TV on, grab some drinks from the fridge and get your favorite pair of sweats. You go to take off your pants, you empty your pockets, and you heart sinks….

Your wallet. It’s gone.

If this has ever happened to you, you know the sense of fear that accompanies this horrible event. Your entire life is contained in your wallet. There’s credit cards, debit cards, ID, money, insurance card and membership cards. You now could be the victim of identity theft, with repercussions for years.

Here’s a step-by-step guide of what to do should the worst happen…

Before your wallet is lost or stolen: lighten your wallet’s load and scan/photocopy everything inside.

This one tip alone can save you a ton of stress. If you’re like most people, you only use one debit or credit card most of the time. Too many people carry tons of cards “just in case”. Also, take your social security card out of your wallet, along with any passwords, addresses and so on. All of these are like pure gold to an identity thief.

Take everything that you have in your wallet and scan it into a computer. I mean everything – license, health insurance cards, even gift cards to your favorite restaurant. Update it as needed, and make sure that the document is password protected. This is incredibly important because you’ll know exactly what has gone missing and all the numbers to call.

You’ve just noticed your wallet is gone. Don’t panic and retrace your steps.

One of our readers told us a story about a date night with her husband. She went into their favorite restaurant, purse in tow, and went straight to the bar. After a few drinks, she reached into her purse to pay the tab. She realized her wallet was missing. Did she lose it? Did someone steal it?

If you find yourself in a similar situation, remain calm. Make sure you look in all the places it could be, and be reasonably certain that there’s no chance of it just popping up. If you’ve been to stores or restaurants, give them a call and report that you’ve lost your wallet.

Yours truly (the author) actually lost his wallet in a clothing store one afternoon. I got home, realized it was gone and called the retailer. Thankfully, they had it and I rushed back in to retrieve it.

You can’t find your wallet. You’re sure that it’s gone for good. Here’s what to do:

Step 1: Contact Your Credit/Debit Card Issuers

Some people will tell you to cancel the cards immediately, but this isn’t a good idea, since it could adversely affect your credit score. What you should do is report your card as lost or stolen. Every card issuer has procedures in place that will suspend those numbers to keep your money safe. You’ll call their number and hear something like, “To report a lost or stolen card, press 2.” In fact, here are the numbers of the four major card companies:

• Discover: 1-800-347-2683
• American Express: 1-800-528-4800
• Visa: 1-800-847-2911
• MasterCard: 1-800-627-8372

Make sure that you get brand new cards, with new account numbers. Ask for the same credit limits and the same (or lower) interest rate, with any cashback/miles/rewards transferred to the new cards. Plus, under the Fair Credit Billing Act, you’ll face no liability for a thief’s shopping spree if you report the card as lost/stolen before the charges occur. If someone charges your account before your alert your card issuer, you’ll be on the hook for up to $50.

If you use any of those cards for automatic payments, inform the appropriate companies immediately. This is very popular with student loan repayments – you just link up your student loan to a debit card and put it on autopilot. But if your card is suspended, the payment will not go through and your debt will remain unpaid. This could affect your credit score.

Remember to act fast. You’ll be glad you did, because victims of debit card fraud only pay up to $50 as long as they report the card lost or stolen within the first two business days of realizing the card’s disappearance. It’s most likely that your bank won’t hold you liable for anything as long as you let them know immediately. If wait longer than two days, your liability limit shoots to $500, and if you wait longer than sixty days, you’ll lose any and all money stolen from your accounts. I don’t know why you’d ever wait sixty days, though….

Here are some bank numbers:

• Wells Fargo: 1-800-869-3557
• Citibank: 1-800-950-5114
• Bank of America: 1-800-432-1000
• TD Bank: 1-888-751-9000
• Chase: 1-800-935-9935

Step 2: File a Police Report

If your wallet has been stolen, it’s a good idea to let the police know. It’s also a crucial step towards protecting your identity. Make sure you get a copy of the police report! If the theft results in identity theft, you can file a complaint with the Federal Trade Commission, fill out an identity theft affidavit form and attach the police report. This goes a long way in protecting yourself, as it will become evidence in your favor in the case of fraud or identity theft. What you DON’T want to do is get asked, “Well, why didn’t you report the loss?” Not a good look!

Step 3: Set Up Fraud Alerts

This is an important step, because without it, thieves could still open new lines of credit in your name. You need to set up a fraud alert with one of the three major credit reporting agencies: Experian, Equifax, or Transunion. Once you set up an alert with one, the law requires that agency to report your loss to the others and an alert will be set on all three of your credit reports for free (for an initial 90 days).

A fraud alert lets lenders and creditors know that they must verify a person’s identity before extending any new credit. How do they verify your identity? They’ll usually call you, via the number you put on file with the fraud alert. This makes it impossible for a thief to get more credit and run up huge bills in your good name. Here are the numbers you need:

• Experian: 1-888-397-3742
• Equifax: 1-800-525-6285
• Transunion: 1-800-680-7289

BONUS STEP: Pull your credit report and look for anything fishy. Some identity thieves won’t do anything with your information while it’s “hot”. That’s why you need to make sure to monitor your credit regularly.

Step 4: Go to the DMV to Report Your Stolen License

Everyone keeps their driver’s license in their wallet. It’s also one of the most important tools for an identity thief. Get someone to drive you to the DMV and report your loss. They’ll process an application and reissue you a new license, which will cost a few dollars in fees. The DMV will probably ask you to file a police report as well.

Step 5: If Your Social Security Card is Gone…

If an identity thief gets your social security number, he’s hit the jackpot. You should know your social security number by heart and have NO REASON to carry it with you. However, if you just so happened to have it in there, you need to report it IMMEDIATELY. This is absolutely critical, because you won’t ever get a new number, like with credit cards.

Make sure you call the IRS Identity Protection Unit at 1-800-908-4490. Then, file the loss with the Federal Trade Commission by calling 1-877-ID-THEFT.

Because a thief could easily open accounts in your name with your SSN, I strongly advise you to consider a credit freeze. This makes sure nobody can apply for credit under your name and social security number. These are not free (around $10 or so per credit reporting agency) but it is a vital safeguard.

BONUS: DID YOUR WALLET CONTAIN KEYS? IF SO, CHANGE THE LOCKS.

You’d be amazed at how many people neglect this step. It’s not that hard for someone to rob your house this way. All they have to do is make a copy of the key and jot down the address from your license. Someone could even return your wallet to the police, but he or she would still have your key.

Lost and stolen wallets can cause massive damage to a person’s life if the information falls into the wrong hands. With this information, you’ll be prepared, and you can turn what could be a devastating disaster into a minor headache.

Credit is a funny thing. Especially when you start talking to other people.

Some people have all the answers on how to improve your credit, but are they accurate?

Just because something seemed to work for someone else doesn’t mean it will work for you, but there are some standards that you (and anyone else) can meet to ensure your credit score will continue to rise.

Before you get into raising your credit score and cleaning your credit, you’ll want to look at these credit myths.

There’s no reason to waste time on things that won’t help you…

This awesome infographic was created by Credit Sesame, a free service that gives you a monthly credit score, monitors your credit and even gives you identity theft protection…yes, I said for free.

You can check out Credit Sesame here, or go read my review for more about them.

Here’s the graphic…

I’ve been there. Over $20,000 in consumer debt with interest rates higher than Cheech and Chong combined.

I remember seeing the offers pouring in to lower my interest rates. This one stuck out:

“0% interest rates on balance transfers for up to 15 months!”

It was a Chase Slate card. 15 months was the longest zero interest offer I could find for a balance transfer at the time. I calculated how much we needed to pay each month to pay it off in 15 months. We applied. We were approved.

It worked for us. We went from paying interest rates of 12%, 15% and even 17% to paying no interest whatsoever. But what would have happened if we would have went over the 15 month mark? Around 23% interest would have happened.

We had to ask ourselves if we were certain we could pay off the account in time, no matter how many unexpected costs popped up, but that’s not all we had to ask. Here are four questions to ask if you’re considering a balance transfer. Two to ask the company and two to ask yourself…

1. When Does the Rate Expire?

Obviously first you’ll want to know what the rate is; then you’ll need to know when it expires. You should be able to find 0% (like the Chase Slate card), but once the introductory rate expires, the interest will likely skyrocket, so make sure you’re able to pay it off in time.

All you need to do is divide your total amount of debt by the number of months you have to pay it off before your interest rate goes back up. If it’s doable and possible even with unexpected expenses then you’re in good shape so far. You’ll have to crunch some numbers here, but even if you don’t pay it off during the intro period, you still may save money on interest. That depends on what the interest will jump to. We’ll talk about that next…

2. What Are the Terms?

With many 0% introductory offers for balances transfers, they will do anything they can to get that interest rate back up into the double digits. Typically if you make one late payment, your interest rate will go back to the normal rate and stay there.

You should also consider that if you make new purchases on that card, you’ll probably be paying the regular rate for the new balance. Most 0% intro offers are only for the balance you transfer and not for any new debt. So before you start thinking you can rack up your balance without the interest, read the terms.

3. How Will the Balance Transfer Affect Your Credit Score?

One balance transfer will have little to no effect on your credit score. Ten balance transfers will have a significant effect. If you plan to transfer your balance multiple times, make sure you know the potential impact it can have on your credit.

Credit agencies and credit card companies can tell when you’re just transferring your balance to avoid paying interest. You would think it would make you look smart (and I personally think it is pretty smooth), but they would rather see that amount being paid off rather than sticking around for several years.

4. Are You Responsible Enough to Do It?

This is the ultimate question. If you’re not responsible enough to pay off the card in time after you transfer your balance – don’t do it. But this is difficult, because you have to be honest with yourself. Look at your past and look at who you are now. If you have a history of being undisciplined with paying extra on loans, who’s to say you aren’t going to be undisciplined with this one? If you have any questions about your ability to pay it off in time, you may want to consider creating a plan in your current situation without transferring any balances. You can still negotiate with credit card companies to lower your interest if you decide not to transfer your balance.

Balance transfers can be great if you’re disciplined and responsible enough to take advantage of them, as opposed to being taken advantage of by them. You’re the only one who can make that call, but if you’re dishonest about your ability, you’re only hurting yourself and potentially your family.