#1: Convenience checks

If you think that writing a check issued by your credit card company is convenient, think again — it’s actually anything BUT.

From the moment you write that check, you’ll pay through your nose in interest because most convenience check offers have no grace period. That clock starts ticking and the interest starts accruing IMMEDIATELY … not to mention the transaction fees you’ll pay – they can run between three and five percent of the check amount. Ouch!

Bottom line: When you get those unsolicited checks in the mail, cut 'em up! Identity theft is rampant — here’s how to protect yourself from it.

Next: #2: Credit insurance