Despite all the technology and steps we take to prevent our debit cards from being compromised, there is no way to prevent card fraud from happening.
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Recently, CreditCards.com conducted a survey of Americans who’ve had a credit or debit card transaction flagged because of suspected fraud. Roughly 7 out of 10 said at least one of those alerts was a false alarm when, in fact, more than half said the transactions were completely valid.
As a consumer, what can you do? Not much, but in this episode I cover:
- Protections we already have as card holders (see below)
- Steps to reduce the chance of card fraud and ID theft
- Best practices for where and when to use your debit card like a credit card
Recent data breaches, like the one the media loves to focus on – TARGET in 2013 – may be making card issuers extra cautious.
Why? Because card issuers (i.e.: Banks) are on the hook when fraudulent charges do occur. It’s called the Zero Liability Protection
I also share how I use my debit card
There are times I choose to use my debit card and PIN. I forego the Zero Liability protection to save the merchant from paying unnecessary processing fees.
Balancing the 3 Pillars of Personal Finance
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As a financial coach, I hear people make this statement, “If I could just make more money I could start saving for retirement.”
For the majority of Americans, producing a healthy income is only half the challenge.
There are two other factors that make up the other half: How you spend and how much you save. Finding the right balance between the three pillars of personal finance doesn’t take a college degree or incredible amount of willpower.
However, knowing the ratios of income versus spending versus the need to spend is paramount:
Earn big money + spend big money = need to save big money
Earn little money + spend little money = need to save some money
Earn big money + spend little money = need to save some money
Earn little money + spend big money = need to save big money
Ponda from the Honda: [Earning Scratch on the Side <27:42>]