It is common knowledge that your personal information should be kept private to reduce the chances of identity theft or credit card fraud. Protecting your personal information is important not only when you are out and about each day, but also when you are making financial transactions online. With all this emphasis on privacy and security, the fact remains that your information is required to complete certain transactions. People who are already facing a financial crisis may be more vulnerable to sharing this information when enrolling in programs or processes which are intended to provide debt relief. Here are a few tips to help minimize your risk.

• Research who will have access to your information- Before enrolling in a program or entrusting a company with bank or credit card information, take the time to research the company. Find out who will have access to your personal information and what type of security systems are in place to prevent unauthorized use. Check the Better Business Bureau to see if there have been any complaints about the company that may indicate they are not on the up-and-up. Another way to get a better feel for a company is by looking for reviews from previous clients. These steps may uncover issues which would indicate the company should be avoided.
• Never give your bank information to a debt collector- Regardless of the abusive tactics used by debt collectors, do not succumb to the pressure to pay a past due debt if you don't have the money to pay that debt. If you do have the money and want to send a payment, do so on your terms. Never provide your checking account information and authorization for an electronic debit as form of payment. There are people who have agreed to a certain amount only to find all of their money has been removed.
• Play close attention to bank account activity. Although you shouldn't use electronic payments to pay a debt through a debt collector, automated debits are common when working with the credit card company directly or certain debt settlement companies. In most cases if you have been behind on payments and the creditor is either working with you or has agreed to settle for less than you owe, they require an automated draft to ensure they get their money by the designated date. If this is the case, you not only have to ensure the money is available, but also that the correct amount is withdrawn. Not every person, company or transaction is subject to suspicion, however both human and technological errors occur.

The tips covered here may not help you get out of debt, but they will help you prevent further financial distress. Whether on purpose or by accident, incorrect transactions posted to your bank account could cost you hundreds or thousands of dollars. No one can afford to lose that kind of money, especially someone already struggling with unpaid debt.

What do you think? Have you ever been “burned” by giving out your personal information? If so, comment below:

Tisha Tolar is a writer for DebtFreeDestiny.com, where she provides information about credit card consolidation, debt relief and how to get out of debt.

So, if you were behind on your mortgage payments and facing the possibility of foreclosure, what would you do? I just read an article about a New Jersey woman who was in this type of situation. And rather than look for an easy way out, she decided to find a way to make extra money.

So she decided to sell homemade "mortgage apple cakes" to make some extra money. And now she has so many orders she now needs to help process all the orders! Read the article here.

What a great lesson we can all learn from!

Even if we are not facing foreclosure. I get emails from people all the time asking what they should do to get out of debt. Most people are looking for professional help, or some type of "miracle" cure for credit card debt.

While sometimes you need help, sometimes you just need to buckle down and work harder. One of my former bosses used to say "sometimes when money is tight you just need to go out and make more of it!"

How true! But most of us don't usually think this way. Maybe we should.

Because there is no magic potion for paying off debt. You just need to learn how to spend less. And earn more. And do whatever it takes.

Have you ever done anything like this? Let us know by commenting below:

The other day I was reading through the Money section on MSN.com and saw yet another headline bashing debt settlement. Here it is:

Debt cut in half? Don't count on it

Like most articles, you'll learn all about the horror stories of people who paid lots of money and got little service. And you'll learn all about the radio and TV ads promising you "the dream" - getting out of debt without any effort.

Of course, there is no magic cure for debt. And there is no magic cure for stupidity. Duh.

So why does debt settlement get such a bad reputation, that makes the whole process seem like just another financial scam?

It's the companies themselves. They're the reason for articles like these.

Because despite what these stories like to tell you, debt settlement is not unethical. It's not illegal. It can help you get out of debt faster. And in many cases it can save you 40-60% of your credit card balances.

But it is NOT a miracle cure for debt. And it's not right for everyone. But those stupid companies out for a quick buck don't tell you the entire story. And the stupid people who sign up with these companies don't do their research, don't read the fine print before signing, and don't educate themselves about a process they don't know anything about.

So, if you're thinking about debt settlement, do yourself a favor - be a good consumer. Read our article 5 tips for finding an honest & reliable debt settlement company. And read our reviews of 3 top debt settlement companies.

You wouldn't hire a financial advisor to invest your money without doing your homework, would you? And you wouldn't hire a contractor to fix your house without checking references, would you? Well, I hope not.

So don't go signing up for debt settlement without knowing what the heck you are getting into!

P.S. Thanks to Mighty Bargain Hunter for listing this post in the latest Carnival of Debt Reduction.