Week in Review: 11/17/2008

Each week we bring you the latest news stories and information about credit, personal finance, and identity theft. Visit us every Friday for new ways to manage your credit and protect yourself from fraud.

880,000 bankruptcies have already been declared this year, up almost 7% from 2007 (and we're not even into December yet). If you're considering filing bankruptcy, you'll need to know the difference between Chapter 7 and Chapter 13, and what to expect throughout the process. Of course, bankruptcy should only be pursued as a last resort, as it can take more than a decade to recover from. 

A slumped economy and a holiday spending frenzy are never a good combination for your wallet. This year, prevent a credit hangover in January by coming up with a sensible spending plan for December. Find unique, thoughtful gifts for loved ones other than the latest tech gadgets or expensive luxury items. You might also consider going on a debt diet at the same time. Find the method that works for you to get out from under those credit card bills. Why wait until the New Year to start working on your financial resolutions?

Members of the U.S. military are more susceptible to having their identities stolen, largely due to frequent moves (which dictate a reliance on remote access to financial services) and carrying their Social Security numbers with them at all times (making the digits easier to steal). Lately, U.S. soldiers stationed in the UK are especially vulnerable to the crime. While the Secret Service and other authorities are holding the exact number of cases close to the chest, they do admit a significant increase over last year.

Another identity theft ring is broken up, this time in North Carolina. Authorities arrested three men and one woman who had stolen thousands of pieces of mail from over 300 mailboxes in Pender, New Hanover, and Bladen counties. They were using the personal information found on bank and credit card statements to make purchases, open accounts, and even obtain property.

As the economy continues to plummet, cases of credit card fraud, counterfeit checks, and phishing are on the rise. College campuses are no exception. The Texas Tech Federal Credit Union and Tech Police Department in Lubbock offer assistance to students who have had credit cards stolen. And credit experts hosted a financial aid workshop for students at the University of Florida discussing the pitfalls of credit cards and ways to protect yourself from identity theft.