Do you know where your debit card is? It is essential to your overall financial security that you keep your debit card in a safe place at all times. Safety, above all else, is of utmost importance. If you are careless with your debit card it is only a matter of time before it backfires on you.

What does it mean to be safe with your debit card? Well, this means different things to different people. To give you an idea of how to improve the safety of your card, follow the tips below.

1. If you lose your debit card do not wait too long to call your bank. The biggest mistake you can make is thinking that you are going to find your card in the near future – just to learn that this never happens. It is better to be safe than sorry. Call your bank, explain that your debit card is missing, and have them cancel it at once. Sure, it is an inconvenience but you will receive your new card in no time at all.

2. Do not share your debit card number and other information with anybody. There is never a good reason to give somebody else the information from your debit card.

3. Only use your debit card at reputable stores. One of the biggest mistakes you can make is using your card at stores that are unknown or do not appear to be legitimate. This holds true for both land based and online stores.

4. Speaking of online stores, make sure you proceed with caution. In today’s day and age it is simple for anybody to start their own store. At the same time, it is just as simple for somebody to steal your debit card information by doing so. Along with this, make sure all the information you transmit to an online store is kept 100 percent secure.

5. Memorize your PIN number. Did you know that some people keep their PIN number in their wallet? Worse yet, there are users that write their PIN on the back of their card. While this may sound silly, it is an all too common mistake. To avoid these types of issues, all you have to do is memorize your PIN. Don’t worry about forgetting it. If need be, you can always reset your PIN number at a local branch or even over the phone.

There is no reason to take a safety risk with your debit card. Instead, follow the five tips above. They will keep you, your finances, and your debit card safe.

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Did you recently lose your debit card? Did you have a scare that makes you think this could happen to you in the future? Losing your debit card is a big deal for many reasons. Although this may never happen, it is good to be prepared for the worst.

Here are several steps to take if you lose your debit card:

1. Call your bank as soon as possible. It is common to wait a few days, hoping that your card turns up. While this could happen, it is better to be safe than sorry. Remember, the longer you wait to report your debit card missing the more chance there is that somebody will use it in a fraudulent manner. Are you really willing to take that risk?

2. Mail your bank a letter reiterating the information that you already spoke about on the phone. This may seem like a waste of time, but it is beneficial for many reasons. Above all else, this gives you a record of what you are requesting. If the rep on the phone does not cancel everything properly and in a timely manner, you can use the letter as proof of what you requested.

3. Request a new debit card. Since your old card has been canceled you are no longer able to use it. In turn, you need to make sure you receive a new debit card from your bank as soon as possible. After all, you do not want to go to long without one.

4. Remember to change any automatic payments that you have setup with your old debit card. Since your number and expiration date have changed, you will no longer be able to use the card for automatic payments – until you update your account, of course. This is one step that many people forget to take upon receiving their new debit card.

Tip: you can usually change your account information online.

5. Watch your account for fraudulent charges. From the time you lost your debit card until the time it was canceled, there is a chance that somebody used it to make fraudulent purchases. Keep an eye on your account, and if something looks suspicious make sure you immediately contact your bank.

One final tip: don’t make the same mistake twice. Losing your debit card can cost you a lot of time and money. Do whatever it takes to keep your card safe and secure at all times.

If you lose your debit card make sure you follow the steps and advice detailed above. It will help get you back on track soon enough.

Can I use a debit card to build my credit? This is a common question, especially among younger individuals as well as those who have had credit issues in the past. Most people are aware of the importance of an above average credit score. While this may not sound like a big deal, the higher your score the better chance you have of securing a loan in the future. Along with this, it can help in many other aspects of your life, such as when applying for a job.

The answer to this question is yes and no. There are several differences between a debit card and a credit card. The main one being that your debit card is attached to a bank account. In other words, nobody is lending you money. When you use your debit card, the funds are coming out of your account. On the other hand, with a credit card, a company (Visa, American Express, and MasterCard) is lending you money and trusting you to pay it back later. Simply put, a debit card is nothing more than an easier way to access money in your bank account.

It is important to note that debit cards do not report to credit bureaus. In turn, using one of these cannot directly help you build credit or increase your score.

That being said, it can help build your credit if you show your financial institution that you can be responsible with your money. Your bank will realize that you have been using your debit card in a responsible manner, which will work in your favor if you want to apply for a “real” credit card such as one through MasterCard, American Express, or Visa. This is not a direct way of building your credit, but over the course of many months/years it will go a long way in showing your bank that you are worthy of a credit card.

Should I use a debit card since it does not do anything to help my credit? The answer to this question is up to you. Remember, just because it does not benefit your credit doesn’t mean that everything is bad. With a debit card you have quick access to funds in your checking account, while also making it easier to manage and organize your finances.

If you are looking for a direct way to build credit you should not rely solely on the use of a debit card. Fortunately, the responsible use of a debit card can help you build your credit in the future.

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Did you know that you can have your government benefits put on a debit card? This has become very popular over the past few years, as more and more baby boomers reach retirement age. Even if you do not opt for this method, you should consider the process as well as the benefits.
If you are interested in having your benefits put on a debit card, the following advice should be useful:
1. Do you know what a government debit card is? This is nothing more than a card that is preloaded with cash from SSI, Social Security Disability, or retirement Social Security. In addition to the convenience that they offer users, the government is interested in this program because it helps reduce paper usage while saving them money.
2. A government debit card works just like any other debit card or credit card. For this reason, users are well aware of how to use the card from day one. Preloaded debit cards can be linked to any government payment or payroll check. If you are currently receiving your government benefits in the form of a check, consider what it would mean to your finances to change over to the debit card option. You may find that this is much more convenient. After all, you will never again have to go to the bank to cash your check.
3. For more information, you can visit socialsecurity.gov – a debit card page is available with additional information. If you would rather speak with a live representative, you can contact Social Security by calling 1-800-772-1213.
Remember, this is a relatively new program that the government is aggressively promoting. They are encouraging people to use a debit card, as opposed to paper check, because of the overall convenience and security.
Are you excited about the prospects of having your government benefits put on a debit card? If so, you may be surprised at how quickly you can make the change. Once you get in touch with the proper party, such as the Social Security Department, you will be well on your way to receiving and using your debit card instead of paper checks.
To learn more, follow the advice outlined above.

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There are many pros and cons that go along with using a debit card. It is important to be aware of both the good and bad. Once you know the benefits and drawbacks, you can do what you can to avoid the bad and focus on the details that will better your financial situation.
Pros
1. Convenience. With a debit card you never have to use cash or check again. Instead, you can use it just like a credit card – except the money coming out of your checking account. Not only is it convenient to use a debit card at local stores, but the same holds true with online purchases.
2. Speed. Have you ever taken the time to write a check at a grocery store or retail outlet? This can take a couple minutes when you factor in the time it takes the cashier to “do their thing.” You can swipe your debit card and be on your way within a matter of minutes.
3. Easy to get cash. With a debit card you can visit any ATM and receive cash out of your checking account. Along with this, most stores can give you cash back after you make a purchase with your card.
Cons
1. Fees can sneak up on you. Just like credit cards, when you use a debit card there are fees that can come up from time to time. Some of the most common include: ATM fees, point of sale fees, and over limit fees.
2. No reward program. Although some banks are implementing these with debit card users, they are few and far between. A credit card reward program can eventually lead to everything from cash back to free plane tickets and much more. With a debit card you are simply taking money out of your checking account, with nothing coming to you in return.
3. Difficulties resolving disputed charges. When you use a debit card, as opposed to a credit card, resolving disputed charges can be a hassle. The reason for this is simple: the money spent comes out of your account almost instantly. This makes it hard to dispute the charge if the item is defective or never delivered.
With millions upon millions of people using debit cards it goes without saying that the pros outweigh the cons. As a user, you want to be 100 percent aware of the benefits of your debit card. At the same time, make sure you know the drawbacks so you can hedge against them.
With this information you should find it easier to take full advantage of your debit card, while avoiding compromising situations.

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Enrolling in a debt management plan
Signing up for a debt management plan may give you more breathing room in your monthly budget, but will it hurt your credit? Not as much as you may think. Using a debt management plan to pay off debt won’t hurt your credit score, but it may make it difficult to qualify for new credit.

Debt management plan: Protecting your credit score
When you enroll in a debt management program, you write a monthly check to a credit-counseling agency and the agency pays your creditors. A debt management plan usually lasts three or four years. A notation stating that you are paying an account through a credit-counseling agency appears on your credit report and remains until the account is paid in full. Paying an account through a credit counseling agency will not hurt your credit score.

Debt management plan: Qualifying for new credit
Participating in a debt management plan could make it difficult for you to qualify for additional credit, and some debt management plans prohibit consumers from applying for new credit anyway.

Some creditors may see that a person is in a debt management plan and decide that they have all the debt they can handle. Other creditors might view participation in a debt management plan as a positive step, a sign that a consumer has taken responsibility for and is serious about paying off debt.

The more a creditor bases a lending decision on a consumer’s credit score, the less a consumer’s participation in a debt-management plan is likely to matter. A typical creditor uses the FICO score. They don’t look at notations on the account. Paying off a big chunk of debt on your own or with the help of a debt management plan will give your credit score a boost.

Debt management plan: Late payments hurt your credit score
What will hurt your credit score? Not debt management plans. Instead, being 30 or 60 days late with any payments can adversely impact your credit rating. Those negative marks hurt your credit score and can mar your credit report for up to seven years.

Debt management plan: Choose wisely
It is very important to choose a debt management plan carefully. If the agency administering the program misses or is late with a payment, it is your credit record that gets impacted. Enrollment and monthly fees for debt management plans vary widely. Some companies may charge several hundred dollars for their services, while others charge monthly fees of $20 or less.

With a debt management plan, a consumer usually gets reduced interest rates, lower monthly payments, no more late fees and fewer calls and letters from creditors. Debt-counseling agencies get their operating money by receiving a percentage of each client’s payments back from creditors.

If you are current on your bills, you may want to try negotiating new payment amounts and lower interest rates with creditors on your own. You never know what kind of deal you may land. And you may be able to make real headway on your debt by simply tightening your belt for a few months and freeing up more cash for debt payments.

Debt management plan: Monitor your debt counselor
If your situation is more serious or you just feel plain overwhelmed, you may want to talk to a debt counselor. If you decide to sign on for a debt management plan, be sure to monitor your credit bills carefully. Is the agency paying your bills on time as promised? You need to be vigilant and look at your statements regularly.

If you discover a problem with bills paid through a debt consolidation company or credit counselor, report the company to a local consumer protection agency or state attorney general‘s office. You can also file a complaint with the Better Business Bureau. For more ideas on how to monitor these companies, see some of the suggestions by the FTC on Debt Management Plans.

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• Weighing the Options With Credit Card Debt (nytimes.com)

• Get a Handle on Your Debt (alwaysbcmom.com)

• Don’t Carry Debt To Improve Your Credit Score (bargaineering.com)

Examples of Debt Management Companies

• Money Management International
• National Foundation for Credit Counseling
• Balance Financial

Overview
Have you ever tried managing your money by creating a personal budget and sticking to it? Do you find that managing your money works or does it seem like a waste of time? The hardest part about managing your money by creating a personal budget is using information from it to modify your spending habits.

With any household budget when you are trying to manage your money, you should be trying to prevent overspending, not only on the large, more infrequent expenses such as vacations, major repairs, end-of-the-year holidays as well as birthdays, but also on the day-to-day and monthly expenses that you incur throughout the year. Only after you have a handle on what and how you are spending does sticking to a household budget make sense and seem worthwhile. It is important to have control over your expenses, even if money management does seem to be somewhat illusory.

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One recommended approach to managing your money by creating a personal budget is to carefully track your spending during the month and then adjust your budget targets up and down in each category, so that your total expenses never exceed your income.

There are many software programs that can help you create a personal budget to track your expenses, however those programs can only display results based on the information provided by you. It is up to you (and your significant other, if applicable) to designate categories for each type of expense in your household budget.

While those categories in your household budget only need to make sense to you, expenses allocated to those “buckets” should be done consistently so that you can track and compare expenditures over time. It rarely matters what you are overspending on — dining out, entertainment or clothes, for example. What matters more as far as managing your money is knowing where it was spent and how that amount differed from the same time period measured previously, for example, so you determine how and where to best change your spending habits within your household budget.

Whether you would like to buy a new or newer car, put a down payment on a new home, or do a major house renovation project – non-discretionary expenses all of which can run into the tens of thousands of dollars in your household budget, you need to be able to carefully track other costs so that you can build the “rainy day” funds to afford those bigger expenses. And when it is anything other than a one-time non-discretionary expense, tracking costs becomes even more significant so that you stick to the household budget allocated for the project.

Understanding Your Expenses
Tracking expenses is helpful, but managing your money also involves understanding the types of expenses in your budget. Here is a list of some expenses, delineated as fixed, committed or non-discretionary that may impact your household budget. Committed expenses are not required for survival, but they are expenses you commit to for yourself or your family that generally impact your household budget and your quality of life.

Fixed (essential)
Home mortgage or rent
Basic food and clothing needs
Essential household expenses
Basic utility bills
Taxes
Student loans

Committed
Insurance premiums
Charitable contributions
Non-essential utility bills (satellite TV service, internet, phone – land line and cellular)
Health/sports club memberships (for self, and spouse and children, if applicable)
Music lessons (for self, and spouse and children, if applicable)
Sports equipment (for self, and spouse and children, if applicable)

Non-discretionary (optional)
Car purchase
Home purchase
Home renovation
Home repairs
New home appliances
Dining out
Entertainment (e.g., movies, theater, sporting events)
Vacations
Holiday/birthday gifts
Other clothing or consumer goods purchases

Establishing a baseline for what is an acceptable allocation of expenses and keeping a lid on your committed and non-discretionary expenses, compared to your monthly and annual income, will go a long way toward helping you succeed with managing your money by creating and sticking to your household budget. Doing so will also provide you the maneuverability to save for retirement, long-term non-retirement savings, as well as to save for “rainy” day expenses and isolated “fun” expenses that you may not want to track in your household budget.

For a lot of people, part of the difficulty in reducing committed and non-discretionary expenses comes from the need to make big monthly credit card payments. If you’re carrying a substantial amount of non-mortgage debt in your household budget, you should cut up your credit cards and aggressively pay down your debt first before allocating funds for long-term and retirement savings, unless you or your spouse’s employer is contributing a matching amount toward that retirement account. Cutting back on matching funds from your or your spouse’s employer is not a good way to manage your money since it is like leaving free money on the table.

The real secret to creating a personal budget that really works is creating a sustainable structure for your finances, one that balances spending and income and that leaves enough room to handle the unexpected.

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