Shredding is required by law

Do you employ a gardener, housekeeper or nanny? If so, you may be violating the Fair Credit Reporting Act by not shredding their consumer and background reports before throwing them away.

Under regulations that went into effect this summer, all employers (even if you only employ one person) must securely destroy sensitive employment reports before discarding them. If you don't, you could be sued, fined or included in a civil suit involving a group of nannies. You can read more about this shredding policy in this article from USA Today and from this article from The Detroit News.  Businesses also have to securely destroy consumer report documents they receive from their customers.

It is a start, but this law only covers official "consumer report" documents such as background checks, employment records and medical histories. Applications and other forms aren't legally required to be destroyed. Expansions on this shred-requirement, such as the recent New Jersey identity theft law, provide even more protection for businesses, employees and consumers.

Blogs we like: SavvySaver

SavvySaver is the personal finance blog of a 27-year old trying to save, budget and invest. CreditBloggers likes this blog particularly because of the smart advice and realistic goals set by the author. In this recent post, the blogger discusses Generation Y's financial goals:

This just shows that many people in my generation are willing to take responsibility for their own lives. They want jobs that are personally fulfilling, and are willing to provide financial security for themselves in place of the job security felt by previous generations. I think this is evident in the number of personal-finance blogs that have popped up in the last year. Personal finance is no longer something that we keep to ourselves or let someone else handle for us; we are taking responsibility.

As if managing money isn't hard enough already, the SavvySaver is also in the midst of planning her wedding. With the average wedding these days costing about $25,000, it's interesting to read her advice and commentary.

Bait and switch by mail

Opening your mail these days is turning into quite the chore. Not only do you have to shred the five+ credit card offers you receive daily but you also have to open and read the fine print on official looking letters just to determine what they are trying to sell you.

What looks like a bank statement turns out to be a credit card offer. What looks like a letter from the government turns out to be a mortgage refinance pitch. Don't even get me started on the paper cuts!

Caroline Mayer from the Washington Post recently wrote an interesting article on the increased use of misleading mail by direct marketers. According to the article, the FTC and Direct Marketers Association are trying to crack down on these confusing and sometimes illegal offers. In the meantime, we'll just have to keep scanning and shredding!

Terrible credit advice

Meet Rachel, Mary and Terry. These folks vary in age from 26 to 49, live all over the country, have different types of jobs and incomes, don’t know each other and have nothing in common…or so we thought.

What do they have in common? They all got burned by bad credit advice during the process of buying or refinancing a home. In these cases, the advice came directly from their trusted advisers such as mortgage brokers and auto dealers.  Instead of helping them save money, following these recommendations led to credit score and loan problems.

In this article, credit expert John Ulzheimer details the bad credit advice these folks were given, the impact of those recommendations and what they could have done differently. Don't fall for these common credit misconceptions!

Cutting down your debts

The holiday season is usually a time people let their credit cards run free. Instead of racking up debt between now and December with free range credit cards, try reducing your debts instead. Gerri Willis from CNN offered five tips for reducing your debts this morning. Along with finding better deals on credit cards, heating oil, insurance and cell phones, try cutting back your monthly cable bill.

In order to get all the premium channels, digital signal and digital video recorders, too many people end up spending about $100 a month for cable. But for only $10 or $20 bucks a month you can still get more than 50 channels in most markets. That's a savings of over $80 that can go toward your credit card debt each month. Or even better, invest in a $20 set of rabbit ears and reduce your monthly cost to $0. Plus, wouldn't you rather spend more time with your family and less time in front of the TV this holiday season? Sounds like a win-win to me!

Blogs we like: FiveCentNickel.com

It's great to see people fired up about credit and money online. That's why CreditBloggers is a fan of FiveCentNickel.com. This blog is dedicated to all things personal finance. From credit cards to identity theft, the host and readers of FiveCentNickel are determined to find the real story and the best deals. Be sure to check out this post where they crunch the numbers on Dave Ramsey's debt repayment plan.

Hotel card urban myth debunked

Anyone who has stayed in a hotel the past few years has dealt with those magnetic cards that have replaced room keys. About 8o% of hotels now use these magnetic cards instead of traditional keys. At the same time, an urban legend was brewing that said the cards contained information about the guest's credit cards and more. From the New York Times:

For several years, rumors have circulated on the Internet about privacy concerns with magnetic cards. The rumors appeared to originate in 1999, when the police department in Pasadena, Calif., investigated a claim that personal information had been extracted from a hotel key card. Officials ultimately concluded that private data was not being downloaded onto the cards.

While there have been occasional instances of hotels putting sensitive information on these cards, overall its an urban legend. The American Hotel and Lodging Association has even issued a press release debunking the key card rumors.

Still, it makes sense to guard these cards when you are traveling. Just like a standard key, you wouldn't want it to fall into the hands of a criminal. More importantly, you should guard against identity theft by keeping your credit cards and other sensitive documents locked in your hotel room safe when you are out and about. Click here to read more tips about preventing identity theft while traveling.

Love your money

We all love money, but do we all have healthy relationships with money? For many of us, our relationship with money could probably use a little couple's therapy. If you neglect, fear or are frustrated with your financial situation, you are probably not managing your money as well as you could.  You may be missing out on the best rates because you don't understand your credit score or not saving for retirement because you are not sure where to start.

Ditching your anxiety over money is a necessary step to financial empowerment. When you learn to respect and understand your money you can save thousands on big purchases and achieve your  goals. In this article, Credit.com's experts show you how to build a healthy relationship with your finances.  Rekindle the romance today!

Cohabitation and your credit

Cohabitation between couples is the new marriage. According to the 2000 census, over 11 million people live with a partner or significant other. These living arrangements work out well for millions of couples. But when the relationship turns sour, things can get pretty complicated. Not protected by marriage and divorce laws, there are no rules for separating jointly owned property and belongings.

Newsweek recently published an article about the financial challenges cohabitating couples face. Along with discussing financial goals before you move in together, the article also suggests that couples create a domestic partnership contract or "cohabitation agreement" and have it notarized. In the event of a breakup, this contract will act as a replacement "prenup" and make the transition go more smoothly.

As for your credit, it's best to keep your credit cards in your own name when you are cohabitating with your sweetheart. If you do open a joint account, keep in mind that the account details are reported to both your credit reports. If you buy a home with your partner, be sure to work out the ownership details in a formal contract before you sign the mortgage papers.

Scary Halloween costume

Check out this photo of a clever (and scary!) Halloween costume. I especially like the addition of the credit card logos and the "identities" of Paris Hilton, Bill Gates, etc. It's a funny take on a serious problem and demonstrates just how mainstream identity theft has become.