According to Boston-based American Consumer Credit Counseling (ACCC), 82% of all Americans would help a family member financially. Younger family members are especially generous, with 92% of individuals aged 18-34 saying they would loan cash to a family member in financial distress.

It’s hard to refuse a family member’s request for a friendly loan, but be sure to go into such arrangements with your eyes open (and maybe your wallet closed).

High Cost of Family Loans

According to the ACCC, total loans between family members will total $89 billion in the U.S. in 2013, with 15% of family lenders not expecting the money to be paid back. Even if the family member knew beforehand that the money wouldn’t be repaid, he or she would provide the loan anyway.

“During these tough economic times, Americans are turning to friends and family for loans rather than the big banks to avoid spiraling into more debt and defaulting on regular payments,” explains Steve Trumble, CEO of ACCC. “Even though consumer and student loan debts have each surpassed the trillion dollar mark, young Americans are still the most willing to help out friends and relatives in need, which could exacerbate their own debt as well.”

The key to lending money to family members – especially if you expect the money to be repaid – is to treat the deal like a business loan, and keep emotions out of it.

“By treating loans between family and friends as a business transaction, consumers can safeguard themselves from damaging an important relationship because of money,” Trumble adds. “Although you might feel inclined to help out a loved one with finances, it’s important to openly communicate about repayment expectations so that no one is left in the dark, or worse: in the red.”

Steps to Take

Taking a business mindset to a family loan is just the beginning of ensuring the process doesn’t ruin relationships. Experts advise taking the following steps before extending financial support to family members:

1. Don’t expect to get the money back – Go into a family loan situation with a mindset that you’ll never see the money again. That’s not saying you won’t – it’s just that if and when the loan does go un-repaid, you won’t be as disappointed. “There are no such things as loans among family and friends – they’re gifts,” says Mary C. Kelly, Ph.D., and the author of the book “Money Smart.” “They are a gift if you give or receive them and they are a gift if you get paid back.”

2. Expect slow re-payment – Kelly says that the nature of a family loan – with no professional obligations attached – changes the loan dynamic. “The reason people need loans from friends and family is because they typically cannot get a loan anywhere else,” she explains. “The financial institution won’t give them a loan or if they do, the interest rate will be too high to be helpful.” She says that borrowers of money from family and friends don’t view these loans as seriously as they do those from banks, so they are far more casual about returning the money. It’s a no-win situation, Kelly notes. “With close family and friends you really cannot demand collateral or interest payments and expect to keep a good relationship.”

3. Make a checklist – Kevin Murphy, a senior financial consultant at McGraw Hill Federal, a New Jersey-based credit union, advises putting together a checklist if you plan on lending cash to a family member.

“Sometimes an individual may have no credit history or may have damaged his or her credit so severely that they will need to seek other alternatives,” he says. “A lot of times this member will have no choice but to approach a family member for a loan. I always recommend to friends and the family members to approach this as a business transaction.”

Consequently, if you’re the family member or friend being asked to lend the funds, here is an important checklist of questions to be answered before you lend:

• Has this person asked me for money in the past?

• If so, was I paid back?

• Was I paid back in a timely manner?

• What is the likelihood that I will be paid back this time?

• What are the funds to be used for?

Another important question you will need answers to is: how do you plan on paying the loan back? “This is extremely important because most have good intentions,” Murphy adds. “However, if their income is already accounted for paying all their other obligations, where will your ‘promise’ come in?”

Murphy says having paperwork in place holding both parties accountable can mitigate many of the problems linked to family loans. “Just make sure the contract covers the all-important question of payments, particularly what happens if the loan goes unpaid,” he says. “You may need to develop a couple of different repayment contingencies to provide for different scenarios.”

Last and Definitely Not Least

If you’re married or in a relationship where you’re sharing a bank account with a spouse, make sure that spouse is on board with your decision to lend money to a relative.

“If you lend a family member money, you can cause a strain to your cash reserves, but much more importantly, to your marriage,” Murphy adds. “This is crucial. If approached, make sure you involve your partner right away.”

The Bottom Line

There’s no guarantee a family loan won’t bring disappointment and conflict, but that won’t stop us from helping the people we love the most. If you agree to lend money to family, make sure to set expectations, draw up a contract and make sure your spouse is aware that the loan is happening.

“Arguments about money are by far the top predictor of divorce and the number one topic likely to spark a disagreement between couples,” stated Steve Trumble, president and CEO of American Consumer Credit Counseling. “Tensions can be exceptionally high during the holiday season, which is why increased honest communication about finances will help you limit the unnecessary stress in your relationship.”

According to the online survey 67 percent of respondents admitted to arguing with their significant other about money. Furthermore, as their income levels increased, respondents were more likely to report that financial issues put a strain on their relationship. Of the 208 consumers polled by ACCC, 90 percent with an income of $100,000 or more reported that money was a hot-button issue in their relationships.

“Clearly, financial disputes among couples is not income biased,” said Trumble. “Couples need to keep in mind that no matter the income, money issues affect everyone. My best advice for couples, new and old, is to remember that managing house-hold finances is a two-person job.”

Additionally, ACCC’s survey found that, as the length of the relationship increased, the chances of arguing over money increased as well. For example, 54 percent of those in relationships for less than five years said they argue over financial matters compared to 79 percent of those in relationships for 10 to 20 years. However, a study by TD Ameritrade showed that only 5 percent of respondents stated money was an important factor when choosing a partner.

“Sitting down together and creating a financial plan that both spouses can stick to will do wonders to maintain the honeymoon phase in any relationship,” added Trumble. “However, frequent communication and regular adjustments to your joint budget will ensure a healthy financial future together. If you are overwhelmed take a step back and set realistic goals that you both agree on. The most important take-away is to ensure that you both are on the same page.”

The affects of money on relationships poll was the latest in a series of ACCC web surveys for 2013 that focus on a variety of financial education, budgeting and planning topics. American Consumer Credit Counseling’s certified and experienced counselors offer a variety of financial education, counseling and debt management services to help consumers achieve long-term financial health and stability.

ACCC is a 501(c)3 organization, that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management.

For more information, contact ACCC:

• For credit counseling, call 800-769-3571
• For bankruptcy counseling. call 866-826-6924
• For housing counseling, call 866-826-7180
• For more information on financial education workshops in New England, call 800-769-3571 x1980
• Or visit us online at ConsumerCredit.com

About American Consumer Credit Counseling

American Consumer Credit Counseling (ACCC) is a non-profit 501(c)(3) organization dedicated to empowering consumers to achieve financial health through education, counseling, and debt management. ACCC provides individuals with practical solutions for solving financial problems and recognizes that consumers’ financial difficulties are often not the result of poor spending habits, but more frequently from extenuating circumstances beyond their control. As one of the nation’s leading providers of financial education and credit counseling services, ACCC works with consumers to help them with the best plan of action to reduce their debt and regain financial stability. ACCC is accredited by the Better Business Bureau and holds an A+ rating. It is also a member of the Association of Independent Consumer Credit Counseling Agencies. For more information or to access free financial education resources log on to ConsumerCredit.com or visit TalkingCentsBlog.com.

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Let’s just get to it.

Wedding costs on the rise — for guests

It’s not news that weddings are expensive affairs, averaging a $28,000 price tag. But even if you think that number is nuts, even if your own wedding started with a flight to Vegas or the justice of the peace, it’s likely that wedding costs have hit your pocketbook too. (Does anyone still say pocketbook? I digress…) MarketWatch reports that 43 percent of Americans have declined to attend a wedding for financial reasons, and costs for guests are on the rise:

“The average cost of attending a wedding — including expenses like hotel stays, bachelor and bachelorette parties, child care, and party attire — reached roughly $539 this year, up 60% from 2012, according to an American Express survey. …the pressure to attend the wedding of a close friend or family member can be so strong that guests will go into debt to be there: 36% of people say they’ve gone into debt to attend a friend’s wedding, according to the American Consumer Credit Counseling, a non-profit financial advisory in Auburndale, Mass.”

What’s more, some etiquette gurus say that even if you fend off the pressure to attend, you’re still on the hook for a gift.

The high price of rent-to-own

How does this deal sound? You can’t afford a couch, so I’ll let you rent-to-own one. At double its retail value. With an APR of 100 percent. Yeah, not so great. But that’s the deal most people sign up for when they rent-to-own. CNN Money reports:

“Since the financial crisis began, the number of rent-to-own customers has surged 50%, from 2.8 million in 2007 to 4.2 million last year, according to industry group the Association of Progressive Rental Organizations (APRO). Annual revenue among retailers in the industry spiked 35% during that time — to $7.9 billion last year. And as of last year, there were nearly 9,000 rent-to-own stores in the United States.”

It’s not a terrible option if you’re just renting the stuff for a few months; but if your plan is to rent-to-own, you’ll pay double what the item would have cost at retail. Double, people! Forget that. Save up for the couch and buy a few bean bag chairs in the meantime. Also a lava lamp and some 70s rock posters. Yeah, baby.

What’s in your wallet?

Hopefully not any of the eight following things, according to Kiplinger:

1. Social security card

2. A password cheat sheet

3. Spare keys

4. Checks

5. Passport

6. Multiple credit cards

7. Birth certificate

8. A stack of receipts

Some of these are obvious no-nos, but I’m guilty of others, like carrying a check in my wallet, just in case I need one. I also have multiple credit cards, but as the article points out, “the more cards you carry, the more you’ll have to cancel if your wallet is lost or stolen.” As for receipts, “a crafty ID thief can use the limited credit card info and merchant information on receipts to phish for your remaining numbers.” Those guys. If only they’d use their powers for good.

Gas prices drop under $3 per gallon

When an article about lower gas prices piqued my interest, I officially felt old. Combined with my affinity for elbow-patch cardigans and my 9 p.m. bedtime, I’m basically your grandpa.

At any rate…gas prices. There’s good news for motorists, via AAA:

“Today’s average price for regular unleaded gasoline — $3.19 per gallon — is the lowest since February 22, 2011. The national average price at the pump is seven cents cheaper than one week ago, 16 cents cheaper than one month ago and 25 cents less than the same date last year. Prices have dropped 41 cents since September 1 and have fallen on 64 of 71 days during this span.”

The national average is expected to continue to fall, with many places (like my home state of Tejas) seeing prices below $3 per gallon. Now let’s discuss the weather…

Homeownership kills the labor market, study finds

Could countries that enable “the dream” of homeownership be killing their own job market? That’s the finding of a study from the University of Warwick and Dartmouth College. From Phys.org:

“Rises in home-ownership in a US state are followed by substantial increases in the unemployment rate in the state, a fall in the mobility of its workers, a rise in commuting times, and a drop in the rate of new business formation. The authors are careful to check, and they replicate, their findings for different periods of US history. The release of their work coincides with a new European study, done independently, which draws the same conclusions.”

The researchers believe that homeownership makes people more likely to stay put and to commute longer distances, which increases traffic for everyone and leads to “not in my backyard” efforts that block new businesses.

I’m a homeowner and I never, ever, ever want to move, so I get how that could cause those issues for the labor market. My neighbors, most of whom are aged 65+, and I are all about “not in my backyard.” And we’re not fond of renters in the neighborhood, or the nearby garden homes that wrecked our drainage. Also, kids, get off my lawn! Ahem.

Fret not, though: there are many ways to express gratitude without breaking the bank.

An average Thanksgiving feast for 10 people will cost $49 this year or about $4.90 per person, according to a recent study from the American Farm Bureau Federation (AFBF).

“Several poultry and dairy product items increased in price during the second half of the year, accounting for much of the increase in the marketbasket,” said John Anderson, deputy chief economist the AFBF.
The AFBF’s Semi-Annual Marketbasket Survey found that on average chicken breast is up 61 cents to $3.93 per pound, whole milk is up 25 cents to $3.71 per gallon, russet potatoes are up 49 cents to $3.18 for a 5-pound bag and bacon is up 43 cents to $4.71 per pound.

“The holidays can be stressful as well as a financial drain on the pocketbook,” said David Flores, a financial counselor with GreenPath, headquartered in Farmington Hills, Mich. During the holidays, about 41% of Americans expect to spend between $100 and $300, and 22% expect to spend between $300 and $500, according to the Discover Annual Holiday Shopping Survey.

“It’s easy to get carried away with your spending over the Thanksgiving holiday,” said Steve Trumble, president and CEO of American Consumer Credit Counseling. “Between the food, the football and visits with extended family, your checkbook might be the furthest thing from your mind.”

For those on a budget, there are a few inexpensive ways to set a table. The USDA says frozen turkey can stay good for a year when stored in a freezer. “Consider buying a frozen turkey on sale ahead of the holiday,” Flores said. It may take some perusing, but there are promotional opportunities to obtain a turkey at no cost.

“If you shop regularly at one grocery store and use their club card or savings card, you might be eligible for a free frozen turkey,” said Amanda Willis, blogger with The Sisters’ Soiree.

Instead of serving a full meal, offer small bites that guests can fill up on.

“Make the veggie, fruit and cheese platters yourself instead of buying the pre-made crudite platters sold by grocery stores,” said Maureen Welsh, a consumer expert on grocery savings at KC Strategic Shopping. Buying a chicken or other inexpensive meats as an alternative to the traditional turkey is another way to save but speak to a butcher first.

“At Whole Foods Market, we have classically trained butchers in every store and they are the experts on getting the best bang for your buck,” said Theo Weening, global meat buyer with Whole Foods Market in Austin, Texas. “Whether your focus is flavor, size, price or preparation, they can help customers make the best choice for the right price.”

Consumer Finance Expert Kevin Gallegos advises saving on electricity and gas by using the oven all at once rather than heating and cooling the oven many times over the days ahead of the meal.

Discover’s holiday shopping survey found that 62% will invite guests to bring a dish to share and 39% will ask guests to bring a beverage to share.

“Reach out to your extended family for assistance,” said Flores. “Many people are happy when asked to share a dish to pass around because they get a chance to show off one of their favorite recipes.”

The $24,000 grant will supplement the costs of ACCC’s monthly distribution of their  “The Dollar Stretcher newsletter to over 24,000 clients in Massachusetts, a publication that offers helpful tips to consumers on how to live better for less. In addition, The Dollar Stretcher newsletter will feature articles written by Rockland Trust’s financial experts.

“Rockland Trust Charitable Foundation has been supporter of our organization for years and we are grateful for their significant contribution and commitment to economic education,” stated Steve Trumble, president and CEO of ACCC. “This generous grant allows ACCC to expand its presence with its monthly Dollar Stretcher newsletter and to reach more consumers who are striving for a healthy financial future.”

Through this grant, ACCC will have the funding to provide Massachusetts consumers in the nonprofit’s Debt Management Program with The Dollar Stretcher newsletter at no cost. Currently, ACCC’s Debt Management Program serves thousands of individuals each year throughout Massachusetts. The program is individually designed to provide each consumer with a unique solution for his or her financial situation. Professionally trained and independently certified ACCC counselors evaluate a consumer’s financial situation, offer assistance in creating a budget to help manage finances and debt, and work with creditors for a possible reduction in finance charges, late fees and/or over-limit charges, monthly payments and time to pay off debt.

ACCC is a 501(c)3 organization, that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:

• For credit counseling, call 800-769-3571
• For bankruptcy counseling. call 866-826-6924
• For housing counseling, call 866-826-7180
• For more information on financial education workshops in New England, call 800-769-3571 x1980
• Or visit us online at ConsumerCredit.com

About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a non-profit 501(c)(3) organization dedicated to empowering consumers to achieve financial health through education, counseling, and debt management. ACCC provides individuals with practical solutions for solving financial problems and recognizes that consumers’ financial difficulties are often not the result of poor spending habits, but more frequently from extenuating circumstances beyond their control. As one of the nation’s leading providers of financial education and credit counseling services, ACCC works with consumers to help them with the best plan of action to reduce their debt and regain financial stability. ACCC is accredited by the Better Business Bureau and holds an A+ rating. It is also a member of the Association of Independent Consumer Credit Counseling Agencies. For more information or to access free financial education resources log on to ConsumerCredit.com or visit TalkingCentsBlog.com.

Of the 234 consumers surveyed in the recent ACCC web poll at ConsumerCredit.com, 67 percent of respondents viewed an emergency such as a death in the family or a natural disaster as a justified cause for loaning money to a relative or friend. Similarly, 42 percent of those surveyed would help family or a friend pay their medical bills, whereas 41 percent would provide financial assistance to pay for regular bills such as rent, utilities or groceries.

“During these tough economic times, Americans are turning to friends and family for loans rather than the big banks to avoid spiraling into more debt and defaulting on regular payments,” said Steve Trumble, president and CEO of American Consumer Credit Counseling. “Even though consumer and student loan debts have each surpassed the trillion dollar mark, young Americans are still the most willing to help out friends and relatives in need, which could exacerbate their own debt as well.”

Every year, loan transactions between friends and relatives amount to $89 billion in the United States, according to the Federal Reserve Board Survey of Consumer Finances. When payback time comes, 15 percent of ACCC poll respondents stated that they would not require either a family or friend to pay them back. Additionally, 60 percent of consumers surveyed would call for relatives and friends to repay the loan they had been given.

However, if the respondents knew they might not get repaid, 32 percent would still lend the money to a relative and 27 percent would still help out a friend in financial distress. According to a study by psychologists George Lowenstein of Carnegie Mellon University and Linda Dezso of the University of Vienna, “borrowers were fairly confident they would eventually repay the loan, but lenders thought even one missed payment probably meant the loan would never be paid off.”

“By treating loans between family and friends as a business transaction, consumers can safeguard themselves from damaging an important relationship because of money,” added Trumble. “Although you might feel inclined to help out a loved one with finances, it’s important to openly communicate about repayment expectations so that no one is left in the dark or – worse yet – in the red.”

The friends and family loan poll is the latest in a series of ACCC web surveys for 2013 that focus on a variety of financial education, budgeting, and planning topics. The online survey can be found at /monthly-poll.aspx

American Consumer Credit Counseling’s certified and experienced counselors offer various financial education, counseling and debt management services to help consumers achieve long-term financial health and stability.

ACCC is a 501(c)3 organization, that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:

• For credit counseling, call 800-769-3571
• For bankruptcy counseling. call 866-826-6924
• For housing counseling, call 866-826-7180
• Or visit us online at ConsumerCredit.com

About American Consumer Credit Counseling

American Consumer Credit Counseling (ACCC) is a non-profit 501(c)(3) organization dedicated to empowering consumers to achieve financial health through education, counseling, and debt management. ACCC provides individuals with practical solutions for solving financial problems and recognizes that consumers’ financial difficulties are often not the result of poor spending habits, but more frequently from extenuating circumstances beyond their control. As one of the nation’s leading providers of financial education and credit counseling services, ACCC works with consumers to help them with the best plan of action to reduce their debt and regain financial stability. ACCC is accredited by the Better Business Bureau and holds an A+ rating. It is also a member of the Association of Independent Consumer Credit Counseling Agencies. For more information or to access free financial education resources log on to ConsumerCredit.com or visit TalkingCentsBlog.com.

“Do your homework before shopping on Black Friday and Cyber Monday by researching online and in-store coupons for items on your shopping list,” stated Steve Trumble, President and CEO of American Consumer Credit Counseling. “However, don’t let the temptation of a ‘one-time deal’ ruin your holiday budget. Plan carefully based on the cash that you have on hand and stick to your budget when tackling stores or retail websites.”

According to Deloitte’s annual holiday survey taken before the 16-day shutdown, 54 percent of consumers believe that the economy is rebounding – an increase of 22 percentage points over the past two years. While consumers will be shopping earlier and more carefully, Deloitte analysts believe that the government shutdown was not strong enough to completely derail the economy during the holiday season.

The National Retail Federation projects that holiday retail sales will increase 3.9 percent this year provided that the shutdown was resolved without much economic damage done. However, the NRF recently released a survey showing that 29 percent of consumers had downsized their holiday spending plans as a result of the current national economic situation.

“Now, after the government shutdown, some analysts predict that consumers will trim holiday budgets by about two percent,” added Trumble. “In anticipation of potentially weaker sales this holiday season, retailers are doubling their efforts to woo reluctant shoppers with even more early-bird specials and sale prices, which could send consumers into unexpected debt.”

American Consumer Credit Counseling offers financial resources and education to help consumers overcome financial strains and develop good spending habits to maintain a debt free future. ACCC encourages consumers to utilize a holiday budget planner to manage their cash as they prepare for the shopping season to begin The ACCC Holiday Budget Planner can be accessed by following this link: /debt-resources-tools/budgeting/budgeting-information/holiday-budgeting/  and follow Barrett’s “Cash Only Holiday challenge at www.TalkingCentsblog.com

American Consumer Credit Counseling, a nonprofit organization dedicated to helping consumers achieve financial health through education, counseling, and debt management, offers free financial workshops on topics ranging from budgeting to credit to identity theft.

ACCC’s certified and experienced counselors offer a variety of financial education, counseling and debt management services to help consumers achieve long-term financial health and stability. These financial education programs help consumers to better understand and manage their finances. ACCC’s holiday spending poll is the first in a series of planned monthly polls related to budgeting and spending habits, intended to help consumers recognize their budgeting needs. ACCC plans to post these polls and the results on their website and Facebook page.

ACCC is a 501(c)3 organization, that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:

• For credit counseling, call 800-769-3571
• For bankruptcy counseling. call 866-826-6924
• For housing counseling, call 866-826-7180
• For more information on financial education workshops in New England, call 800-769-3571 x1980
• Or visit us online at ConsumerCredit.com

About American Consumer Credit Counseling

American Consumer Credit Counseling (ACCC) is a non-profit 501(c)(3) organization dedicated to empowering consumers to achieve financial health through education, counseling, and debt management. ACCC provides individuals with practical solutions for solving financial problems and recognizes that consumers’ financial difficulties are often not the result of poor spending habits, but more frequently from extenuating circumstances beyond their control. As one of the nation’s leading providers of financial education and credit counseling services, ACCC works with consumers to help them with the best plan of action to reduce their debt and regain financial stability. ACCC is accredited by the Better Business Bureau and holds an A+ rating. It is also a member of the Association of Independent Consumer Credit Counseling Agencies. For more information or to access free financial education resources log on to ConsumerCredit.com or visit TalkingCentsBlog.com. Follow ACCC on twitter @TalkCentsBlog.

Matt Paradise, community outreach leader with the ACCC, joined us to talk about the results.

Paradise said, “Communication is critical.”

He said it’s necessary for couples to work together with funds.

He said to share goals, create a spending plan, manage money together, consider credit scores and keep some personal money for oneself.

“I think being able to take a light-hearted approach is important,” he said.

Paradise said the communication doesn’t have to be a tense argument, but can be fun to envision the future.

In early September, self-storage company Public Storage Inc. experienced a technical glitch that allowed one of its tenants to view the leasing information of 745 Public Storage tenants while accessing his lease documents online. That information included names, addresses and driver’s license numbers.

“Although we believe that this customer did not make any use of your information, because the information left our office environment in violation of our policies and procedures, we are providing you this notice out of an excess of caution,” Public Storage’s chief information officer, Brent Peterson, wrote in a letter to customers. “We regret any inconvenience caused by this incident.”

According to the letter, Public Storage quickly reviewed the breach and corrected the problem. It also secured its leasing data and assured its customers that the company is diligently monitoring its data storage processes to make sure something like this never happens again.

“Our personal data is out there in so many different places that security breaches like this are just bound to happen.”
Rick Allen
Information systems security professional for PayPros

But this episode raises some critical questions about the security of important personal data. For instance, just how common are breaches like this one? More importantly, what can self-storage customers do to protect themselves from their data being compromised?

“Frankly, I’m really not surprised that something like this happened,” said Rick Allen, an information systems security professional for PayPros, a provider of digital payment technology for many industries, including self-storage. “Our personal data is out there in so many different places that security breaches like this are just bound to happen.”

If you are—or plan to become—a self-storage tenant, here are a few things to consider before surrendering your personal data.

Breaches Everywhere

Not to cause too much paranoia, but chances are pretty good that your personal information (Social Security number, address, phone number and even credit card numbers) are at risk for being compromised or stolen.

“I always tell people that if you haven’t had your identity stolen already, you will,” said Mike Sullivan, director of education for Take Charge America, a nonprofit credit counseling firm. “There are just so many outlets and so many ways it can happen.”

The numbers certainly seem to back this up. According to the 2013 Verizon Data Breach Investigations Report, 621 data breaches were confirmed last year around the world. The breaches involved government agencies, large consumer brands, Internet startups and even big-name financial institutions.

What’s more, most companies (and consumers) don’t even know personal data has been compromised until it’s too late. According to a 2013 report by data security firm Trustwave, it took an average of 210 days from the time of the initial breach for companies to discover they’d been attacked. That’s 35 days longer than it took them to detect breaches in 2011.

While the situation may look grim, self-storage consumers can take these five steps to help protect their personal information from security breaches.

1. Ask the Right Questions.

When the time comes to rent a storage unit, the facility manager most likely will ask for a lot of personal information, including your address, credit card number and maybe even your Social Security number. According to Draz, every consumer should be prepared to ask three important questions about this information:

• Why do you need it?
• How will it be used?
• How are you going to store and secure it?

“Too often, we just blindly trust people asking for the info they need without ever stopping to ask them why they need it,” said Dan Draz, principal at Fraud Solutions, a Chicago-based fraud consulting firm. “Your personal information is a commodity, and you need to treat it as carefully as any other valuable possession.”

For instance, Peter Maginnis, owner of Harrisburg Self Storage in North Carolina, said all of the information he collects from customers—including credit card numbers—is encrypted. This means that even if someone were to hack into his computer network, the hacker would have a hard time deciphering it.

“Security breaches are a real concern for customers, especially when it comes to their credit card information,” Maginnis said. “That’s why we take these precautions. We want to keep our customers’ information just as safe as the stuff we store in our units, so we take every precaution possible.”

2. Get a Copy of the Privacy Policy.

To get a thorough understanding of how a facility plans to store your personal information, tenants should ask for a copy of the company’s privacy policy, said Katie Ross, education and development manager for American Consumer Credit Counseling.

“Every company is going to have one, especially when they are recording so much personal information,” Ross said. “It is going to detail how your information is being used, how long it will be kept on file and what the company does with your information once they no longer need it.”

Maginnis advised customers to do their homework when researching self-storage facilities.

“Make sure it’s a reputable place and that they have all the amenities to allow customers to do business online while also keeping their personal information secure once they hand it over,” Maginnis said.

3. Never Use a Debit Card.

As a general rule of thumb, experts suggest that consumers avoid using a debit card for any recurring financial transaction, such an automatic withdraw of monthly rental fees.

“You should always use a credit card rather than a debit card in situations like this,” said credit expert Scott Bilker, author of “Talk Your Way Out of Credit Card Debt” and creator of DebtSmart.com. “For one thing, if someone gets a hold of your debit card number, that person now has access to your entire bank account. Also, it’s generally easier to put a hold on your credit card if information is stolen or breached.”

4. Never Give Out Your Social Security Number.

According to Charles Burckmyer, president of information security firm Sage Data Security, Social Security numbers are probably the most readily available piece of personal information for would-be identity thieves.

“You could go online right now and buy someone’s Social Security number for anywhere between 30 cents to a couple of bucks,” Burckmyer said. “You need to make sure yours isn’t just floating around.”

One way to do that, Bilker said, is to provide your Social Security number only when absolutely necessary.

“Unless you’re taking out a loan, dealing with a government agency, or dealing with someone writing you a paycheck or sending you tax forms for employment, there’s absolutely no reason they should need your Social Security number,” Bilker said. “If they demand it, I’d either take your business elsewhere or make one up.”

5. Make Data Less Valuable to Criminals.

To accomplish this, identity theft expert Robert Siciliano suggests doing two things.

The first is signing up for identity theft protection, which usually costs about $10 a month and provides consumers with timely alerts anytime personal data is used without your permission.

Secondly, Siciliano said, consumers should “freeze” their credit by calling all three credit reporting bureaus and asking them to put a lock on your credit reports. This makes it impossible to issue new credit to you (as well as any thieves who happen to steal your personal information). It costs about $5 per credit agency and easily can be “unfrozen” whenever you want.

“With identity theft protection and a credit freeze, you are retaining control of your personal information and making it useless to a thief,” Siciliano said. “It’s like losing the keys to your house and then changing all the locks. Sure, some thief out there may have your keys, but since you changed the locks, those keys no longer have any value to him.”