Avoid Skimming Crooks

Over 84% of Canadian adults have at least 1 debit card and about 74% have at least 1 credit card. Despite the convenience and popularity of these cards, there is a risk of fraud. It is important to protect your cards, just as you would cash or cheques. Some of the risks associated with debit/credit card fraud are the same as carrying around your account numbers, so protect your card information in your wallet, online and over the phone.

There is, however, another threat to card users that is unique - it's called "skimming." Skimming occurs when thieves set up a device that captures the magnetic stripe and keypad information from point of sales terminals.   It is important to note that debit card fraud has been decreasing in Canada because of the conversion away from magnetic striped to chip cards, but skimming with magnetic stripe cards still occurs.  By doing the following you will reduce the risk of having your information stolen.

Safe Online Shopping

I posted the following advice over a year ago, but with so many more people shopping online this year I figured it would be worth re-posting.


Online purchases have grown dramatically over the past decade.  Whether you are looking for auto parts, books or even clothing, you can buy them online.  While many people want to see and touch the items they are buying, more and more feel safe about purchasing their goods over the internet.

 There are security risks, but if you follow the tips below you can have more confidence in your online shopping experience.

1. Make sure your information is being entered on a secure site. 
2. Look for the latest credit card password procedures
3. Know who you are buying from. Use stores you are familiar with or people you know have dealt with.
4. Beware of refurbished items, often a detail buried in small print.
5. Check the store’s return policies before you buy.
6. Use a separate credit card for online shopping, preferably one with a low limit in case the number gets stolen.
7. If the deal sounds too good to be true, it probably is.
8. Online deals can seem great, but what do you do if something goes wrong with the product?  Check out local retailers too as they can often provide faster service than the online merchants.

Christmas is coming, so if you are looking for a specialty item you just can't get nearby, feel free to do some online shopping, but keep safe.  Jerry

Credit Card Can Be Like Fire

Using a credit card is very similar to using fire:  using and controlling it can be incredibly beneficial to you, but let it get out of hand and you face a disaster.

We are seeing many people trying to clear up their most expensive debt, the vast majority of which comes from credit cards.  People get into a lot of trouble by not understanding what credit cards do and how they work. The following are 5 simple facts about credit cards.

1.  High Interest Rates - They charge higher interest than bank loans because they are easy to acquire, and the credit card companies don't have your house or vehicle as collateral.  In order to make up for this increased risk of no collateral, they charge higher interest rates.  The standard card today charges around 18.9%, with some store cards charging as much as 28%.  There are lower rate cards around, but the low rate is usually an introductory offer and increases to regular rates after 6 months or a year.  A good credit bureau score can get you a better rate.

Lessons Learned from 2010

After a very enjoyable Christmas holiday, it's time to get back to work and the regular busy routines of life.

I must admit that while my family stayed very close to budget with Christmas gifts this past year, we went way over on the food budget during the holidays.  We only had some family over one evening, but we had other friends over a few times and we ended up buying a lot of snack foods.  While the snacks tasted good in the moment, I found that later on I wanted something more filling or substantial that wouldn't leave me feeling so groggy.  After seeing the bill for all the snack food, I really wished we'd just spent the money on a meal of ham, scalloped potatoes and corn rather than potato chips and fried spring rolls; in the end it would have tasted better and been far less expensive. A lesson learned for next time.

I'm starting out 2011 by looking at the things I've learned in 2010.  Here are a few of them: