Need to trash your old financial information? Hanging on to old financial information, such as old account statements and unattractive credit offers is a waste of space. However, simply throwing your financial information in the trash is a security danger and leaves you open to fraud. These four tips will help you decide what financial information to keep, and how to deal with the rest of your old financial information to avoid being a victim of fraud.

Shred it. It doesn't take much financial information for an identify thief to piece together enough of your trash to do some damage. To ensure the security and safety of old financial information, anything that you wouldn't feel comfortable letting a stranger read should be put through a mechanical shredder before you throw it away. This includes financial information containing account numbers, your social security number, or even your full name and home address. Before putting this personal information in the trash, shred it to avoid being a victim of fraud.

If you want to throw away old financial information, here is a brief list of specific financial and personal information that should always be shredded to ensure security: bank information, budgets, blank checks, credit card offers, and employee evaluations. You should also shred income tax records, insurance documents, legal papers, and medical records, for added security and safety. If in doubt, it is better to throw away something properly than to allow easy access for potentially fraudulent activity. Taking the time to shred your old financial documents is an excellent step to ensuring the safety and security of your financial information.

Follow the law. Under a relatively new FTC provision, the Fair and Accurate Credit Transactions Act was developed. This 2003 disposal law states that "any person who maintains or otherwise possesses consumer information for a business purpose" must destroy that information before discarding. This includes both paper and electronic copies. While it appears to only apply to corporations, if you run a small or home-based business with access to this info, it applies to you, as well. Be sure to shred or otherwise destroy any consumer information before it goes in the trash.

You have other options. Needing to throw away a large number of documents at once? The new laws allow for burning, pulverizing, or the traditional shred option. If the task is burdensome, there are third-party trash disposal services equipped to do the job that will trash your old financial or personal information using proper security measures.

Know the basics. Shredders come in all shapes, sizes, and prices. With basic models starting at just $20, there is no reason every household shouldn't have one. The security benefits that come with shredding old financial information are well worth the money. Do some research before purchasing a shredder, and determine if it will fit your personal need. Some things to consider include: how much will you have to shred, the size and shape of your documents, and whether you need a battery-operated or corded model.

By getting into the habit of shredding all of your unneeded documents before throwing them away, it will make the task an easy one and prevent you from being a victim of fraud. Have one trash receptacle assigned to "shredding" only. For even more security against fraud, shred old information on the day before your trash pick-up to give would-be criminals less opportunity to commit fraud.