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CREDIT CARD SKIMMING & 4 Tips to Protect Yourself from it!

Have you heard of Credit Card Skimming? No? Well, neither had I until today and yet I was a victim of it several months ago. I've often wondered how someone was able to clone my card and go on a shopping spree at the Home Depot. Today I finally got my questions answered.

Here's how they did it:

Thanks to those magnetic strips on the back of credit cards, you can pay for gas at the pump or buy groceries at the checkout with one quick swipe through a card reader.

We all love this because it is convenient, but thieves have used this technology to create a new kind of fraud -->> Credit Card Skimming. It's one more danger we must guard all watch out for and another maddening example of how crooks find ways to turn technology against us.

Here's how it works

The bad guys buy magnetic card readers (readily available online) and attach them to legitimate card readers at ATM machines, gas station pumps, movie rental kiosks, or anywhere they think they can get away with it.

The counterfeit card reader captures the credit card information of everyone who uses the machine. (On ATM machines, crooks also attach tiny video cameras to steal PIN numbers.)

They then remove the phony device and use the stored information to buy stuff online or write the data onto new magnetic strips to make counterfeit credit cards or ATM cards.

Counterfeit Credit Card Trends

Portable skimmers (small enough to fit in a palm) can be used by anyone who handles your credit card, such as a waiter. All they have to do is get your card out of your sight for a second. That's enough time to swipe it through the device, and steal your information without you suspecting a thing.

Here's an example of what a credit card skimmer would look like on an ATM machine. Notice the tiny pinhole camera. Who would even think to look for that?

credit card skimming

Follow these tips to protect yourself from Credit Card Skimming:

• Don't let your credit card out of sight. Watch carefully anyone who handles your card.

• Keep track of receipts and check your credit card statements regularly to make sure you authorized all purchases.

• Report any unauthorized purchases immediately to your credit card companies.

• Don't use a credit card reader if there are any signs of tampering. Don't swipe your card through devices that offer to clean the magnetic strip. Those are scams designed to capture your credit card information.

Have you been a victim of Credit Card Skimming? If so, how did you resolve the issue? I'd love to hear your story. Let's chat in the comment stream below!

photo by: shawnzrossi

Need help eliminating your credit card debt?

Our Debt Consolidation and Debt Settlement programs can get you out of debt fast and save you money. Click on the FREE Debt Summary link to get more information!

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Tags: debt settlement, debt consolidation, credit card skimming, how to pay off credit card debt

5 Tips To Lower Your Monthly Credit Card Payments

If your debt looks like a mountain and your budget feels like a shovel, you probably feel like it will take a miracle to get rid of your debt for good. Check out these 5 tips to lower you monthly credit card payments!

#1 It NEVER Hurts to Ask:

It only makes sense to ask the people you owe for a break. Compile a list of all the people you owe and the amount you owe them. Then, sit down and create a workable budget. Once you have your monthly spending budet in place, it will be easy to determine how much you're able to pay to each creditor. Call each creditor and let them know you're willing to pay the debt but can only afford to pay $X. If the customer service rep says no, don't fight or argue, simply ask to speak to a supervisor. BE AWARE, sometimes a creditor will reduce your monthly payment and/or iterest rate for only a short period of time. Make sure to get any agreement in writing, on company letterhead, before making a payment.

#2 Transfer balances

If your credit score is good, you can often get a balance transfer credit card with a lower interest rate than your other credit cards. Sometimes you can even get an extremely low introductory interest rate (as low as 0% in some cases) and use the introductory period to make interest-free payments on your debt. BE AWARE, these low introductory rates are just that...INTRODUCTORY! They will expire within a few months to a year most of the time, and chances are the interest rate will go up drastically after that introductory rate expires. Make sure that you have enough in your monthly budget to significantly pay down or pay off these debts during the introductory period or it may not be a good deal.

#3 Debt Consolidation Program

Consumer credit counselors are better skilled at negotiating lower interest rates and payments from your creditors. Enrolling in a credit counselor's Debt Consolidation Program, will allow you to get lower monthly payments making it easier to pay off your debt. Credit counselors can also help you make a budget and teach much-needed money management skills.

Debt Consolidation Programs allow you to consolidate all of your unsecured debt into ONE LOW MONTHLY PAYMENT and offers the following benefits.

PAY LESS: Better repayment terms are offered by most creditors. Most will lower interest rates, wave late and over the limit fees AND bring your accounts back to current without making up those missed payments. This can save you thousands over the life of the debt!
PAY OFF YOUR DEBT FASTER: You’ll be able to pay off your debt in three to five years rather than the average 25 years it could take without our program.
REDUCE YOUR STRESS: Our customer’s are relieved when the collection calls disappear.
ONE EASY LOW MONTLY PAYMENT: Your credit cards and other unsecured debts are consolidated into one monthly payment so you don’t have to juggle payments.

#4 Debt Settlement Services

If you cannot afford the payment required by a Debt Management Program, Debt Settlement may be the answer.

Debt Settlement is a program designed for people:

Who are starting to become delinquent on their payments
Some or all of their debts have gone into collections
DO NOT want to file for bankruptcy

Our clients:

Have a substantial reduction in their monthly payment
Save thousands of dollars in both principal and interest
Are DEBT FREE in 36-48 months

Debt Settlement can help with the following types of debts:

Credit Cards
Lines of Credit
Medical Bills
Unsecured Loans
Collections
Repossessions

#5 File Bankruptcy

There are times when the debt you owe is just too much to pay. In this case, you might consider filing bankruptcy. The new bankruptcy law prevents people from abusing bankruptcy. It requires an income-debt comparison in addition to consumer credit counseling before you can file bankruptcy.

Chapter 7 bankruptcy will allow you to completely wipe out certain debts while Chapter 13 bankruptcy will create a payment plan.

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Tags: debt relief programs, debt settlement, debt consolidation, best way to eliminate credit card debt, lower your monthly credit card payments

Debt Consolidation Program vs. Debt Consolidation Loan

With all the terminology that is being thrown around today, it is easy to understand how you might become confused with the difference between a Debt Consolidation Program and a Debt Consolidation Loan.

Are they the same thing? NO

Debt Conoslidation Loan

In general terms, a Debt Consolidation Loan refers to the action of combining several smaller debts into one larger debt. This usually creates a lower interest rate and a fixed monthly payment. However, it is important to fully understand the implications of choosing a debt consolidation loan to pay down your debts. Do you have equity in your home? In today’s market, housing values are falling. Is it wise to put your home on the line to pay off credit cards? Consider this, credit card debt is considered unsecured. This means that the only collateral underwriting your credit card balance is your signature. By using your home equity to pay off your usecured credit card debt you are turning it into secured debt. If you get behind, you could lose your home.

Second mortgages and home equity lines of credit usually carry long terms, so while your interest rate may be lower, you pay it over a long period of time. You may end up paying more over time.

Debt Consolidation Program

Debt Consolidation Program Counselors negotiate with your creditors to accept a smaller monthly payment over 48-60 months. Most major creditors have pre-set agreements with Debt Consolidation Programs as to what percent of a balance they will accept at what interest rate. This payment and lower interest rate can save some you hundreds of dollars per month. Not only that, but with a level payment plan (paying the same payment each month) you can be debt free in four to five years You can always pay more if your circumstances change which will get you out of debt even sooner!

Through a Debt Consolidation Program, your credit card accounts will be re-aged. This simply means that your accounts are brought back to current status, so you are no longer behind. This will put a stop to the accumulation of late fees and will STOP COLLECTION CALLS!

Your Debt Consolidation Program Counselors will also arrange for one monthly payment to be withdrawn from your bank account automatically. At that time a pre-arranged payment is dispersed to each of the creditors in your Debt Consolidation Program. As you pay off your creditors, and work towards being debt free, the remaining credtiors get a larger payment, while your monthly payment remains the same.

Although these two options appear similar on the surface. There are some very key differences that you need to understand before making your final decion. If you still need some assistance in deciding which is the right choice for you, our Debt Consolidation Counselors are happy to discuss your current situation and point you in the right direction.