What do I need to know about shredding documents?
In an increasingly digital world, it’s easy to overlook the risks associated with physical paperwork. Yet paper documents remain one of the most common sources of identity theft and financial fraud. Properly managing and shredding sensitive documents is a simple but powerful way to protect yourself.
Why it's important to shred documents
Throwing documents in the trash without shredding them can expose you to “dumpster diving,” a tactic used by criminals to retrieve personal and financial information. Even seemingly harmless documents can contain details like your name, address, account numbers, or signatures.
Shredding documents helps:
- Prevent identity theft by destroying sensitive personal data
- Protect financial information such as account and routing numbers
- Reduce fraud risk tied to discarded bills, statements, or applications
- Maintain privacy in both personal and professional matters
What documents should be shredded
Not all paper needs to be shredded, but anything containing personal, financial, or confidential information should be destroyed before disposal.
Always shred:
- Bank statements (after the retention period)
- Credit card statements and offers
- Utility bills with personal details
- Pay stubs and employment records (when no longer needed)
- Tax documents after the recommended holding period
- Medical bills and insurance statements
- Pre-approved credit or loan offers
- Documents with signatures or account numbers
Also consider shredding:
- Shipping labels, as they often include your address and personal information
- If you can't remove the label to shred, cover the information with a permanent, indelible marker
- Old IDs or expired cards
- School or legal correspondence
How long should I keep documents?
Knowing how long to retain documents before shredding them is just as important as shredding itself. Keeping records too long can increase your risk, while discarding them too soon may leave you without necessary documentation.
Here are general guidelines:
Keep for 1 year or less:
- Paid, undisputed medical bills
- Monthly bank and credit card statements (unless needed for tax or dispute purposes)
- Pay stubs (until matched with your annual W-2)
Keep 7 years:
- Tax-related records that are not your return
- Investment records and supporting paperwork
- W2s
Keep indefinitely:
- Birth certificates
- Social Security cards
- Marriage or divorce records
- Citizenship papers
- Adoption papers
- Death certificates
- Tax returns
These permanent documents should not be shredded but instead stored securely in a safe or lockbox.
Best practices for secure disposal of documents
- Shred regularly instead of letting documents pile up
- Use a high-quality shredder for home use. A cross-cut shredder is generally recommended, as it cuts paper into small pieces that are far more difficult to reconstruct than strip-cut shredders.
- Take advantage of community shredding events like Webster Five’s Shred Day with the YMCA and BBB of Central New England, with both shredding services through P. Pellegrino Trucking and electronics recycling through Green Day recycling.
- Consider professional shredding services for large volumes
