Credit monitoring services and identify theft insurance can be pricey, starting at $10 a month and going all the way up to $30 for some more premium services. Even with the high cost, many of these services don't cover everything consumers think they do. For many people, monitoring and protecting your own credit can be much more effective and more affordable than some services out there.

First, the best way to monitor your own credit is to get your free annual credit report. Many people don't realize the three credit reporting agencies are required by law to give you a free credit report each year through annualcreditreport.com. While this won't tell you your actual "score," it does provide consumers with a powerful tool. Experts suggest consumers spread their free checks at each agency throughout the year, this way you will have a better chance at catching any credit fraud.

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Second, freeze your credit, which prevents any new credit from being opened in your name. According to consumerunion.org, all states require the three credit reporting agencies to allow consumers to "freeze" their credit. Putting a freeze on your credit won't change your ability to get your free credit report or pay bills, and companies who do business with you will still have access to your credit. While this doesn't protect against all kinds of identity theft, it will prevent a major portion. Under Utah law, credit reporting bureaus are allowed to charge $10 for freezing your credit and up to $10 for unfreezing your credit (victims of identify theft can have these fees waived). It's important to remember to have the freeze lifted before applying for any kind of credit, or it may delay your application. Because of the nature of a freeze, it may not be for everyone.

Third, make sure to monitor bank/credit card statements and your mail. If you're getting mail for another person, missing any mail or don't recognize charges on your bank statements, contact your bank right away. If possible, it's best to sign up for electronic statements.

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Fourth, remove yourself from pre-approved credit offers. Lifelock will do this for those subscribed to its Lifelock Command Center service (which runs $15 a month), but this can be done for free by yourself by visiting www.optoutprescreeen.com, calling 1-888-5-OPT-OUT, or writing to the three credit agencies yourself. Here, you will be able to choose to opt out for five years or opt-out permanently. It's important to remember you still may receive other credit card offers after filling out the forms, they just won't be pre-approved offers.

Fifth, know when you do and don't have to provide your Social Security number. Always scrutinize any request for your Social Security number — even on job applications. Many states across the nation have made it illegal to collect a Social Security number before a job offer has been made, though this isn't the case in Utah.

If you do decide to use a credit monitoring agency or identity theft insurance, make sure you read all the fine print about what they will protect and cover. Many identity theft insurance policies only cover the cost you incur to get rid of any identity fraud. This means if someone steals your identity and buys $100,000 worth of stuff, the insurance may not pay for those items — they will only cover costs you incur in fighting those charges. Popular service Lifelock says its "$1,000,000 guarantee" will cover "$1 million to hire experts, lawyers, investigators, consultants and whoever else it takes to help your recovery." Notice this guarantee doesn't mention covering any of the actual fraud.

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