Need advice about how to handle your personal finances? Whether the struggle is saving for retirement, organizing your bank files, or talking about money responsibility with your spouse or loved one, Post personal finance columnist Michelle Singletary offers her advice and answers your tough questions.

A transcript follows.

Read Michelle's latest columns, check out her Color of Money Book Club selection archive or sign up for her weekly e-mail newsletter.

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Michelle Singletary: Welcome everyone. Lots of questions so let's get started.

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Maryland: Hi Michelle,

You talked me into (via your live Q&A) paying off my house early. I sleep GREAT at night!!! At 45, my home is paid for and we have a pretty good nest egg in the bank. We have made a bit of a game out of finding new ways to save money, like anything else it can be fun. My wife and I will each take a certain amount of money, go to the store and buy items we need and then compete over who got the better deals (I usually lose to my penny pinching wife). We never pinch when it comes to buying a good bottle of wine though (some things are still sacred from penny pinching).

Michelle Singletary: I can't think of a better note to begin today's chat with than yours.

I want to be you when I grow up --mortgage free!!!!

And I love that you make the point you aren't "house poor."

The thing is definitely pay off your house but not at the expense of also saving elsewhere -- in cash, investments accounts, etc.

You don't want to have ALL your money tied up in your house. Anyway, good for you!

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Springfield, Va.: Hi, Michelle, not a straightforward money question, but my husband and I value your views and would appreciate your input.

We are in much better shape than most, have no debt other than mortgage and one car note that will soon be repaid, and have decent retirement savings. We also have medical issues that may in time prove expensive.

One of the best years of my life was my junior year abroad, and our two older daughters, now 30 and 28, also had fabulous experiences. Unfortunately, with rising tuition costs, the badly falling dollar, and rising food and gas costs, it will be very difficult to give our youngest this same experience without borrowing a substantial sum of money, even though her older sisters are willing and able to help out. She appears to be pretty nonchalant about the whole thing-- I doubt she'll throw it back in our faces in later years if we don't provide her with this opportunity. I would really like for her to have what I found to be an incredibly worthwhile experience, but not at the cost of risking our financial future. Thanks for any insights you might offer.

Michelle Singletary: Really, you know the answer. You just don't want to accept it.

Keep doing what you have been doing because it's working.

So take the trip if you have the cash for it. If not, here's an idea, have your younger daughter to a study abroad program in college. That's what I did. I spent 6 months in London studying journalism. Then I took a month off after my studies and backpacked around Europe -- all by myself. My grandmother, Big Mama, nearly had a heart attack because her baby was so far away hopping trains and staying in crazy places.

And if she can't do it while in college, she could take some time afterward (with saving) and still have that experience. She's young. She's got time. Stop sweating it.

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NW, D.C.: Hi Michelle!

I just pulled my credit report and got the surprise of my day - I have an +800 credit score! (10 years ago, I had over $30,000 in credit card debt and I swore never again to be in such bad personal finance condition.)

My question is: should I now look to "flex" my 800-pound muscles and refinance my mortgage, given that rates are falling? Are there other places where my new score will give me leverage for better rates?

Thanks!

Michelle Singletary: Forget the credit score.

Crunch the numbers to see if refinancing is worth the costs. Are you staying in the house and if so for how long?

What are the closing costs? How long will it take you to break even (closing costs vs. possible lower monthly payments).

That will tell you whether it's right to refinance, not your credit score, although it certainly helps to get you the best rates out there. But lenders also look at income, job history, etc.

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Sugar Grove, N.C.: I want to say this as non-judgmentally as possible, but why don't people with decent salaries save money? Every month I see stories in the newspaper about 50-somethings that have lost their job due to lay-offs or plant closings that have made $40-$50,000 per year for the last 15 or 20 years, have an almost paid-off house, no medical bills to speak of and grown children that have next to nothing in savings--I don't just mean no retirement savings, but no emergency fund, no nothing. These are people that are old enough to have remembered the last two major economic downturns, but they still didn't wise-up and put anything aside for a rainy day. Can you please shed any light on the psychology of this?

Michelle Singletary: Whew!

Got a day or two?

The fault is everyone's really. Consumers who buy too much. Lenders who lend too much. Marketers how hawk too much.

Think about it. Bankers and marketers spend their entire days and resources trying to get people to part with their money.

And many people can't resist, don't have the financial education to resist, or haven't been taught to resist.

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Tina in Falls Church: Hubby and I paid off our house too...about 5 years early. It just made sense to do it when the opportunity arose. We are 56 and 57. What a feeling!! During the life of the mortgage we never gave in to the temptation to refi. Many of our friends are in big trouble now. It just never made sense to basically use a house as collateral to buy cars, vacations and stuff. We are lucky we never had any emergencies that forced us to look at taking money out of the house.

Michelle Singletary: Another great story. Hope others see it as inspiration.

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Capitol Hill: I know I'm submitting early, but I'm desperate!

I'm getting ready to buy my first car, and my parents and I are at odds over how I'm going to pay for it. I'm also looking to open a Roth IRA this year.

I think it makes sense to put in a larger down payment and take out a smaller loan. This leaves me less to put into the Roth this year, but less to pay off on the car.

They think I should put in a smaller down payment, take out a larger loan and invest more in the Roth.

The loan has a 3.9% interest rate. In the long run, do I lose more money to the interest rate or to the opportunity costs of not investing as much in my Roth? Either way, my emergency fund remains untouched.

Help!

Michelle Singletary: Well, if I were you I would go with putting as much down on the car as possible.

Heck, why not wait and pay cash for the car.

I know. It's so not the norm.

But be abnormal.

And be as debt-free as possible. If you lost your job or got sick or whatever, you would be thankful for no car note or a low car note.

Your parents mean well but you are right on this one.

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Baltimore, Md.: If you have $15k where is the best place to put it? $15k credit card balance, $9K loan or a down payment on a reliable used car that will cost $25k?

Michelle Singletary: Wouldn't buy a car if I had $15,000 in credit card debt.

Would keep my hoopty as long as possible (if that is what you have) and use the money to pay off the credit card debt.

Of course if you don't have an emergency fund hold some back for a cash cushion.

And may I add this in....if you have $15,000 in credit card debt, you can't afford a $25,000 car!

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Southern Maryland: Ooh boy, Michelle,

We are feeling it. And it doesn't feel nice. It used to be that I felt nickeled and dimed. Now I know that I am being five dollared and ten dollared.

I bought a 1/2 gallon of ice cream. Our child asked what's wrong with the ice cream? I don't eat ice cream so I look at the almost empty container compared to the new one. Turns out the 1/2 gallon ain't a 1/2 gallon anymore! Of course it is smaller. Frozen vegetables are now 14 oz. vs 16 oz.

I am so glad Friday is payday.

The silver lining in this storm is that we rarely use our credit cards and pay it off every month so no credit card debt.

I know how to cook and eat cheaper so I'll start cooking a pot of beans on Saturday morning.

Michelle Singletary: So know what you mean.

I'm charging my kids $1 every time they leave a light on.

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Washington, D.C.: First off, love your discussions. Hi, my question is regarding our HELOC. What would be the best advice as to what we should be using it for other than home repairs or remodeling? We are in no need of any major house repairs at this time. Is it okay to let the money just sit or invest, maybe pay our children's tuition? Can you give examples of what would be the best use for it, and what should we absolutely not use it for? Thanks in advance.

Michelle Singletary: First NEVER EVER use a home equity line of credit to invest.

You are using borrowed money to invest. BAD, BAD IDEA.

And check with your bank because many have pulled people's lines of credit. So chances are you don't have that line.

Additionally, you should be paying school tuition with income not a home equity loan.

Unless you are being put out of your home, don't access that money, if it's still there.

Remember it's not "your" money anyway. If it were you wouldn't have to borrow it.

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I know we've discussed recently, but:...food prices are going up so much! my monthly total is way over last year. And we don't eat out ever! One pot meals are great for the winter, but what are some make ahead cheap meals for summer?

Michelle Singletary: I know. I feel the pain.

But hey, wear a tee-shirt and eat spaghetti.

I'm fixing chicken more. Cutting back on drinks, water is better anyway.

Buying bulk when it makes sense.

And praying prices will come in line soon.

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Springfield: Michelle,

Here's why we as a nation are in collective financial trouble: "a reliable used car that costs $25K" Huh? You mean there isn't a 10 year old Camry or Accord for $5-6K that will run for a bit and allow you to save up for a nicer car WHEN YOU HAVE THE MONEY?

What kind of reliability costs $25K? Why do we think it needs to cost that much to be "reliable"? I don't get it.

Michelle Singletary: You make a good point. One I was trying to make.

Don't need a $25,000 car when you have debt.

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Junior Year Abroad?: I'm a little confused by Springfield's question. Maybe I'm just an old fogey, but I did two semesters abroad in college, and everything except the airfare was all covered by my basic tuition -- basically, since the school ran the programs, it treated them the same as a semester on campus. So I'm not quite sure why it would cost so much more?

But in any event, I second your thoughts that there are many ways for kids to go abroad if they're really interested, without spending huge amounts of money. Church groups, volunteer groups, Peace Corps -- or even the old standby of a summer job (if you can get one!) that pays for a Eurail pass and hostel membership. Or expand your horizons beyond places where the Euro rules; a lot of the world is still very cheap, even with a weak dollar. You may have to look a little harder, and it might not be all 5-star hotels, but if you and your daughter value the experience, you can find ways to make it happen. Like anything else, you just need to set a budget, plan how you're going to get there, and then figure out what that money will get you.

Michelle Singletary: That was the point I was making, so thanks for helping out.

When I went the tuition abroad was about the same as at home.

I did have to save a lot the summer before because even then my dollar didn't go far. And students abroad travel around a lot, which adds to their expenses.

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Wheaton: I too, am another with a paid off mortgage. I paid it off early in Feb and it is such a great feeling. If you are in a position to do so I heartily recommend paying if off early.

Michelle Singletary: Amen!

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Re: Sugar Grove: While I understand the point the poster from Sugar Grove was trying to make, I think it was a little harsh.

In many areas of the country, $40,000-50,000 per year is not a princely income. Did you ever stop to think that by the time these hardworking folks paid their bills, bought food, and put aside money for their children's college funds, there was literally no money left to build up a sizable nest egg? There are millions of families and individuals who literally live paycheck to paycheck, not because of extravagance or poor planning - but because the wages and benefits offered to many "middle income" wage earners just aren't enough to make it.

A little compassion would be nice.

Michelle Singletary: You are right. We definitely need more compassion.

But I understood her underlying point. Look, I work with a lot of people who are in debt and make that kind of money or less. And in many, many cases they aren't saving for anything -- college, retirement, emergencies. Nothing.

So the point is you have to put something away at every income level. And as tough as it can be, it can be done.

My grandmother did it making $13,000 a year with me and my four brothers to feed and clothe. If she did it, many others can too.

But your point is well taken, there are those who don't have much left after rent, food, and transportation costs.

So that's where getting more financial education, or a roommate, or a second job or moving in with friends or relatives has to be part of your plan to make it.

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NJ: Hi Michelle,

For myself, I don't see the merit in paying off my mortgage early since I plan to sell my house in the next year or so, being an empty nester who wants to downsize and simplify. I do pay cash for cars - since my first, I started the habit of making a "car payment" each month even after it was paid off, then by the time I needed a new car I had the money saved up. I also have been able to help my two children get their college education without loans. So I understand the value of saving and not being in debt (I pay off my credit card every month without fail). But sometimes it is not wise to pay off debts like mortgages early, you just have to run the numbers for your situation.

Michelle Singletary: If you are moving, you are right.

But the folks posting aren't moving in a year or two.

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Consolidation loans?: Hi Michelle

I'm submitting early in hopes you take my question. My husband and I are in are late 20's and have about 20k in cc debt. We're working our way out slowly and saving where we can. We have both started IRA's and have an emergency fund of 3 months living expenses.

I was dumb and racked up cc debt and the stupid part is I don't remember what I bought with it.

Anyways I got approved for a consolidation loan though my bank (Bank of America) at 9% apr (my credit score came back at 740 and the lowest apr was 7% but just missed it) for 96 months. (40k limit). I want to consolidate all of our cc debt so we have ONE payment and it's easier to pay down. Two of our cc's have an apr of 24% (I've learned never just pay the minimum or they will raise it). If we pay the loan off earlier there is NO penalty. Husband and I have plans to pay off in 2 years. The total minimum payments on the cc's now is about $400 so the new payment would be the same.

Was this a smart thing to do? The only bills left then are utilities and car payment (which is manageable).

My other question is do I close those cc's that I just consolidated? One of them is closed by my choice but the other 2 have been open since 1998. The 2 still opened we've never made a late payment on and are in good standing.

I keep questioning if I did the right thing with the consolidation loan. How is this going to affect my great credit score? My husband and I both have great scores of over 730.

We really want to start saving for a house but don't want to buy or look until we have no more cc debt.

Michelle Singletary: What's done is done.

And it wasn't a bad thing. You got a lower rate and you have a plan to pay it off. Just be very, very sure you pay it on time, all the time so the rate doesn't jump up.

Also for now stop worrying about your credit scores. You don't need any new credit for a house or anything until you get that cc debt paid off.

Finally, don't close the older accounts. It may make your credit scores go down.

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HELOCs?: When are people going to stop treating their homes as ATMs? Has the current credit crunch/foreclosure nightmare taught us nothing? The poster said his/her family doesn't need the money, so why are they even thinking about it?

I grew up in a home where credit cards were not used. While I have had one for over 20 years, I did not truly even understand what it meant to carry a balance because I have never done it and never will. Can't understand how someone can have $1000s of credit card debt. Didn't know that people borrowed money -from their homes- until fairly recently as well.

Live beneath your means, people, and SAVE!!!

What is going on these days is truly scary to me.

Michelle Singletary: Wow. Feel better to get that off your chest?

And you definitely make some good points.

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Washington, D.C.: Perhaps the Food or Sunday Business section should do a piece on healthy, low cost eating. Spaghetti is inexpensive but not particularly nutritious. Perhaps your money is better spent on quinoa to get more protein and fiber. I don't know the answer, but it might be helpful to get some expert suggestions. I don't think having everyone turn to pasta and ground beef is a great alternative in our era of obesity, which is much more costly in the long run. Most people aren't going to want to eat beans all the time so maybe there are good suggestions for affordable, nutritious, tasty and not too time consuming meals.

Michelle Singletary: Well there is wheat pasta and you don't have to use meat and definitely not ground beef. I often use turkey.

And you can pare down the portions and serve veggies with it.

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Dumfries, Va.: My husband was the product of a recent downsizing. Given this unstable economy, he has since taken the first job that he was offered which unfortunately is paying half the salary that he was making before. How do we take the steps to resume an aggressive savings account when we will now be faced with less of a financial picture?

Michelle Singletary: Honestly, you may not be able to save at the same rate as before.

Go back to your budget and cut where you can. But also don't worry about trying to do financially what you did before. If you are saving something toward emergencies and retirement, that's the important thing.

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Bethlehem Penn.: I'm trying to make a decision. My house needs new gutters (old ones are rusted through). The estimates I've gotten are for higher quality gutters w/a 20 year warranty for $1200 or standard quality gutters (have to ask about the warranty but presume it's less if any) for $600. Normally I'd go for the better quality without question as this is part of my home investment--but I also know that I only have one more year at my job and will have to change careers, so I'm trying to build up my emergency fund (currently $9000). Do you think I should go for the higher quality given that means $600 less in the emergency fund?

Michelle Singletary: This is a hard one. But if you think the higher quality will last longer (be sure, shop around, check Consumer Reports) it may be worth the extra money in the long run.

But always, always do what you can afford. It also may be the case that you can cut other places and still build up your cash reserve.

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Maryland: Hi Michelle,

Thanks for running my comment first (I feel important now:). I like your reply to NJ that sometimes you do have to crunch numbers to see if you should pay off your mortgage. I have read a lot of financial books over the years that say don't pay your house off early for tax reasons, but I don't get it really, pay 3 times the original price on the house to get a tax break. Makes no sense to me, but not having a mortgage now that makes sense.

Michelle Singletary: Right you are again.

Here's how I put it to people about the tax break. Let's say you are in a 30 percent tax bracket and you pay $10,000 a year in mortgage interest.

With the deduction you get back about $3,000.

But you paid $10,000 to get back $3,000.

With no deduction you might have to pay $3,000 in taxes but you get to keep $7,000.

Not having the interest payments means you keep more of your money.

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Re: new car loan vs. Roth IRA: I think I'm going to copy the last line of your response and have it framed for my parents!

Thank you for reassuring me that I've actually got a good instinct on this one.

Michelle Singletary: You do.

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Alexandria, Va.: Michelle,

What are your thoughts on supporting our parents financially? I'm in my late 20s, live very comfortably - no debt, good short term and retirement savings, don't spend extravagantly, etc. Parents divorced about 6 years ago - mom has no education, makes about $22K a year, and is working 3 jobs at age 60. It's no good for her health, but she wants to keep her house. I feel so guilty any time I take a vacation or do something fun since I know my mother is suffering. I try to buy her appliances when they break, pay for everything when we visit each other, etc. Should I just be giving her money to help with her mortgage, utilities, etc.?

Michelle Singletary: I do believe that you should help family members.

But unless your mom asks for help, don't feel guilty.

Help where you can. But you shouldn't feel guilty for what you have.

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Why?: Why does closing a credit card lower your score?

Also, beans and greens and rice and maybe some cornbread. Best meal ever.

Michelle Singletary: Part of what goes into your credit score is the length of time you've had a certain account. The longer you have an account (assuming you use it wisely) the better it is for your score.

Additionally, when you close accounts it changes your overall credit availability. So if you have several cards with a total available credit, it doesn't look so bad score wise if you have money on one card. But close those accounts and you could be over the recommended amount of availability on that one card and overall.

Generally you don't want to be using more than 30 percent of your available credit.

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Rockville, MD: The food issue is getting insane. My wife and I keep kosher in our house, so the cost of meat is already insane (4.99/lb for chicken breasts and they never go on sale) and the cost of the vegetables and fish we use to help round out meals has gone up significantly. If we had a yard we'd have a garden but it is getting out of control. I can only hope that we find a better fuel alternative so farmers can go back to growing food and not fuel!

Michelle Singletary: I hear you. I have three growing children to feed.

So know what you mean!

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Falls Church, Va: People have been brainwashed to believe mortgage debt is good debt. I paid off my 30 yr fixed in 12 years. All my friends thought I was crazy. They thought I should put money in the stock market so I could double it in a few years. I told them "the stock market goes up and down, but I will always need a place to live."

Michelle Singletary: You told them.

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San Francisco, Calif.: Thank you for all that you do to help others. Any advice or suggestions that you can give me would be greatly appreciated. I currently owe $24,875 in student loans. The only other debt I have is a mortgage. I have no car loan debt and no credit card debt. I have $20,000 (eight months living expenses )in an emergency fund account. Should I take $10,000.00 from the emergency fund and apply it towards my student loan debt? Thank you for your help.

Michelle Singletary: If you are comfortable that your job is stable, in this case I would use some of that savings to pay down that debt.

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Closing out credit cards: Hi Michelle - I love your chats and advice, which have pushed me into saving more and not using credit cards at all.

Because of that, I'm trying to close out my credit cards and have encountered problems. I had a card with Capital One for many years and decided to pay it off and close it after a couple years on non-use. The only automatic charge was 4.99 for a monthly credit score monitoring service, offered and sold to me via direct referral from Capital One.

I brought my balance down to zero and called to close the card. One month went by with no word from them, so I thought I was good to go. Second month, I get a statement with a charge that monthly credit monitoring service. I called Capital One, who said I had to go 60 days with no new charges in order to really close my account. I canceled the monthly credit charge & paid the balance off again.

Two months later I get another statement, this time with 2 months worth of late fees, since that credit monitoring service continued to bill me. I called and complained, they took the charge off and I canceled the account again. Two months later, same thing happened. This time I threatened to call the BBB and my senator - they have promised that my account is closed but I don't believe them.

Just a heads up to anyone closing out an account - watchdog it carefully after you pay it off - they will probably find a way to put a charge on your account that will start the cycle again. Crazy that they force you to keep it open for 60 days after paying it off to "make sure you don't incur any new charges". It's criminal.

Michelle Singletary: Good advice. Thanks.

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Current Pet Peeve: Following up on your earlier comment on using a HELOC: one of my new favorite shows is "My House is Worth What" on HGTV. When they ask people why they want to know what their house is worth, the most common answer is "I want to know if I can afford to do X,Y,Z."

I think this answer illustrates one reason why we're in this mess. Do these people not realize that a HELOC isn't "their" money? It's the bank's money -- they'll let you use it for a while, but only if you pay them back more than they give you, and let them take your HOUSE if you don't.

But the part that cracks me up is the assumption that all they need to "afford" whatever it is is sufficient equity in the home. Ummm, no. All equity says is whether the bank will make the loan -- it says absolutely nothing about whether you can afford to pay it back!!

Personally, I figure you have to actually own your current stuff before you can think about "affording" other, newer stuff. I have a 600K home, on which I owe 400K. That means I still need to fork over another $400K before that house is "mine" and we can think about what else we might be able to afford.

Michelle Singletary: Some of you are on fire with your comments.

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Bethesda, Md.: I love you Michelle. You're the best. I wish I could take you with me everywhere I go. LOL

Michelle Singletary: Luv you right back.

And think my boo (hubby) might object to my lending myself out but thanks anyway!

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RE: consolidation loan: Michelle

I wrote in about the questions with consolidation loan. I haven't done the loan yet (didn't give an ok). I just wanted to see rates etc. Would this be a smart thing to do or leave the cc bills where they are and continue to pay on time but don't really see the balance go down due to the interest rate?

Michelle Singletary: If you can get the lower rate and the minimum payments are the same go for it.

But make more than the minimum payment if you can and get rid of it soon.

Just know with credit cards the rates are never a sure thing.

So yes, I think you are doing the best given the situation.

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Washington: To a previous question, you said "You are using borrowed money to invest. BAD, BAD IDEA" However, time and time again, you tell people that they should continue to save money in the bank even when they have outstanding credit card debt.

These two statement contradict each other. Saving money in the bank when you have credit card debt IS investing borrowed money. Please reconcile your statements, if you can.

One should aggressively pay down debt instead of keeping a "safety" fund which they might (or might not) need. If you've paid down (or off) the credit cards and have an emergency, you borrow (short-term) and you're better off than had you kept the money in the bank.

Michelle Singletary: You are still WRONG WRONG WRONG (if you are the same poster as last chat).

You just don't learn do you?

You MUST save something even when you are in debt because things do come up.

I am working with three military couples trying to help them get out of debt (next installment running Sunday).

In every single case something came up and they were so happy they had savings to deal with the expenses otherwise they would have had to use credit. Saving is not investing. Investing is when you put your money at risk smarty pants.

So listen to me. I've worked with many, many people in debt and hoping or praying nothing comes up when you are paying off debt is a knucklehead thing.

You don't have to stockpile money or reach the three month living expenses goal but put something away cause you need a rainy day fund because it's going to rain eventually.

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What's up with your archive page?: I know you've done a chat since January! Why can't they link to them so we can read them?

washingtonpost.com: If you're looking for Michelle's archive page, you can find it here and all of her chats are here. You can find past and present Color of Money Book Club picks here and an archive of her weekly e-letters here.

Michelle Singletary: Here you go.

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Falls Church, Va.: I have two sets of married friends who have paid off their mortgages. I am SO JEALOUS! I'm a single mother. I always think when I make my mortgage payment, how awesome it would be if I was banking that payment rather than putting it toward a mortgage. Only 15 years to go ....

Michelle Singletary: Don't be jealous. Just use their stories as inspiration.

You will get there too. And then you all can have a party and mock the rest of us still in slavery.

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I can only hope that we find a better fuel alternative so farmers can go back to growing food and not fuel!: Just to be accurate: it is the past drought conditions, and transportation (gas) costs that have increased the cost of food. That myth that corn being diverted to fuel raising food costs has been debunked. There is enough corn grown for both food and fuel. (In fact, we have such an oversupply, the government still pays some farmers to NOT grow corn.)

Michelle Singletary: Okay, not sure who is right but the fact is we are all feeling the pain no matter the reason.

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Alexandria: My wife recently had one of her credit cards closed because of inactivity, she hadn't used the card in several years. Her credit score was 790 when she last checked 6 months ago. Will this have a negative effect on her credit reports and her FICO score?

Michelle Singletary: Her score might go down a bit but in time it will go back.

Besides with a 790, you should not worry. It's already 50 points or more better than most folks.

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Rockville, Md.: Michelle, are you sure your legacy homeownership workshop is June 12th? The website doesn't have that date. Could you clarify? Thanks.

Michelle Singletary: So sorry folks. Slip of the finger.

The event is July 12. The Website is right.

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D.C.: Don't forget the grill--that's a great way to save money for summer cooking. You use less fuel and can grill almost anything. Veggies are delicious (especially sweet corn) and you can even grill pizzas. (The Post had a recent article on that). It also saves a lot of time and keeps you away from the fast food drive thru.

Michelle Singletary: Good point if you can grill.

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Alexandria, Va.: I just need a little affirmation. I NEED some repairs to an upstairs bathroom with a sagging floor. A few hundred dollars more can "gild the lily" a bit and make it nice aesthetically. I will need to use my HELOC to finance it. Will the money gods rain fire on me for indulging just a little bit? It is a house I have lived in for six years and plan to turn in to a rental within the next few when I relocate.

Michelle Singletary: Is it possible to save and do the repairs? I know you said you need to make it but could you wait and save more?

If not, do it the right way and in a way that may improve its value (ask a real estate person before you spend the extra money).

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To Consolidation Loan?: You should add that once the credit cards are "paid off" via the consolidation loan, do NOT start charging things again (unless able to pay it off). Many people see the $0 balance on the credit cards and think "Hey, I can buy this or that" and run them up again.

Michelle Singletary: Consider it added.

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Food prices: Thanks for all of the good advice! Regarding food prices, Sally Squire's Lean Plate Club (right here in the WaPost) recently had a column on inexpensive eating.

Michelle Singletary: Thanks. And love Sally's column.

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Anonymous: I'm starting a new job next week. I have $45K in student loans @ 5% and have $15K @ 5.2% in a CD and $5K in savings. I'm 30 with no retirement savings. I'm wondering what I should be spending my extra dollars on. Paying down student loans, start retirement savings, or start saving for a home (i.e. 20% down payment).

Thanks.

Michelle Singletary: Start with paying down debt, using some savings to build a cash cushion so you don't have to go into debt if something comes up.

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"Savings you might (or might not) need": That poster reminds me of my former roommate, who teased me about having a little cushion while I paid off my debt. She said I should close my savings account and put that money on my debt, like she did.

We both started out with a similar amount of debt. We both had our share of emergencies. 2 years later, guess which one of us is out of debt and guess which one has MORE debt?

The idea that you "might or might not" need an emergency cushion is a red herring. You WILL need it. End of story.

Michelle Singletary: That's what I'm saying.

You definitely did the right thing. So don't listen to eggheads or so-called financial people who tell you otherwise.

Their calculations don't account for life.

Plus what I've found is once people get rid of their debt starting with the lowest balances first, they get energized and that makes them save more and dump more money onto the debt. In the end they get rid of the debt faster erasing the interest charge difference.

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Arlington, VA: Michelle, I know you've got some fire recently for saying that using credit cards, even if paying them off, make you spend more.

I want to say you are right.

For the past four months, my husband and I have been buying everything possible in cash (and sticking strictly to our budget). Until this point, we have been using credit cards and paying them off each month. We thought we were sticking, generally, to the budget, although we realized we weren't saving as much as we thought we could.

We have "found" over $1000 a month. I have absolutely no idea what we spent it on before. This is almost a quarter of our monthly salary.

So yes, you are right.

Michelle Singletary: Thanks for that.

I did take heat. But that's okay. As a columnist I'm used to it and expect it. It's part of my job to stimulate debate.

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Michelle Singletary: Well folks, I would love to stay and answer so many more of your questions and respond to people who think they know better than me, but got to run.

So sorry if I didn't get to you. But come back. Post again. And I'll try to answer the leftover questions in my print column or in my eletter.

Thanks and have a great weekend.

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