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 to you all. I do hope you've been having a great summer. Well, lots and lots of questions so let's get started.

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Largo, Md.: What to do if one of your family members steals your identity/opens an account in your name without your knowledge? The credit bureaus will not delete the accounts off of my credit report and my family members are not owning up to the debts.

Michelle Singletary: I'm sorry to say that you need to rat out your relative.

File a police report for identity theft. Once you do that the creditor and credit bureaus have to remove the fraudulent accounts. Go to ftc.gov to get more information about clearing up identity theft.

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NOVA: Regarding the "free loan" in today's column, I have a similar question. How do you feel about 0% financing on cars? My hubby wants a new car but I hate to take that much money out of our savings. We could but he's retired and I'm hoping to retire soon so I'd like to leave the savings alone. Are there any hidden fees or drawbacks to the 0% financing that many manufacturers offer? If it matters, we have no other debt and own our house free and clear.

Michelle Singletary: Well, if you read me regularly you know I HATE debt. People act like there is no downside to debt. There is. Risk.

If you have all other things covered -- good savings, good health insurance, no credit card debt, house paid for, good retirement savings, just buy the car outright.

Don't buy into this notion that debt at zero percent comes with no risk.

But then I like to sleep at night.

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Re: tax credit: Michelle--I'm afraid that the $7500 tax deferral will essentially be used for furniture and other "I need it now" new house things. I completely sympathize, since I did a ton of "I need it now" when I moved into my first place a year ago.

One thing I bet a lot of homeowners find themselves wishing they had is a house emergency fund. If Uncle Sam gave me $7500 interest-free, to repay over 15 years, I hope I'd take that free money right over to a bank in the most inconvenient part of town and put it in a deposit or a MM cd. Houses are EXPENSIVE. I'd want to keep that money for the unexpected furnace failure, the major basement flood, or the roof leak. That would be a great way to avoid the trap of home equity loans or credit card loans for unexpected repairs.

If I was smart, I'd just leave the money there for as long as I was living in a house, because there's nothing worse than finding out that your main sewer line has to be replaced and you're going to have to find the money to do it, today.

Michelle Singletary: Or if you were smart you would SAVE for your emergency fund and not use debt to build up savings.

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Washington, D.C.: One of the worst things about the downturn in the economy is the silly advice that financial advisors are now spouting everywhere.

For example, "Save money by brown bagging your lunch. If you normally spend an average of $10/day on lunch, brown bagging will save you $50/week or $2,600/year."

Don't these morons realize that even if you brown bag your lunch, you still have to pay for the food you put into the brown bag? Even if it's only a peanut butter and jelly sandwich? And that it's entirely possible to spend A WHOLE LOT MORE than $10 on a brown-bagged lunch?

Michelle Singletary: Really. You can spend more than $10 on a brown bag lunch?

If you buy the bread, jar of peanut butter, jelly, home-made lemonade, cookie, etc. that won't total per brown bag more than $10.

I don't think the advice is silly. I think many people are trying to help folks find ways to cut back.

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Alexandria, Va.: Hi Michelle, I have a 401K question. Since I'm not taxed on the 401K contributions I make, I think of it as a tax savings of 25%. The problem is, my 401K is losing 25%. What do I do? Do I stop contributing so much? Do I take some of it and save it or place it in an IRA instead? I'm lost.

Michelle Singletary: It's hard right now to be putting money into an investment with the market so crazy. I've lost value in my 401(k) but you can't look at this from a tax perspective.

If you are well diversified and you think the holdings are good (and haven't been consistently losing money over the long hau) then sit tight. There are times when the value of your portfolio will go up and down. Historical data shows that over the long haul you can expect a return of 10 to 11 percent.

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Washington, D.C.: Hi Michelle,

I look forward to your columns and chats!

My spouse is significantly older than I am, and we are looking at long-term care insurance as a means of him being taken care of while I am still working, and, in the hopes of not breaking the bank if he becomes ill.

It is expensive--around $3,000/year in premiums. Do you know of any way to further try to protect the small amount of retirement money we've set aside? Put it all in my name? I am so overwhelmed, but I feel that getting this insurance is the right thing to do.

Thank you for any help you can provide.

Michelle Singletary: First, thank you for your kind words.

Without knowing more I would say you should shop around. $3,000 is a lot. Did you shop around? Perhaps you could find a policy with options that could bring that amount down.

The one thing you don't want to do is start paying on this type of insurance and find you can't keep up with the payments. Do it only if you can afford it.

And trying to hide assets, etc. under your name won't really help unless you plan on divorcing the guy so he can apply for aid. Wouldn't you use that money to take care of him? So moving it around won't solve the problem.

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Washington, D.C.: I am a newlywed, and my husband and I plan to buy a house this Fall. Financially, we're in very good shape (no debt, emergency fund and retirement savings, good incomes). What are the one or two pieces of advice you'd have as we begin the process of buying?

Michelle Singletary: Have enough money saved beyond the down payment.

The best way to start off your married life and homeownership is to be as debt free as possible with a nice cash cushion not designated for the home (closing costs, down payment, funiture, etc.)

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Arlington, Va.: If someone offers me an interest free loan, I will take it any day and put it into an FDIC insured account until it must be repaid. Why not profit from this? I don't see the risk, unless risk is defined as lacking discipline to not blow the $7500 credit. Would you agree that those with discipline to just put the cash in a FDIC bank account should do so to profit from the zero percent loan?

Michelle Singletary: No I would not agree.

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Arlington, Va.: Michelle, recently married, we both own condos we are "upside-down" on, at least on paper. Rates (both 5/1 ARMs) are resetting on both condos in mid-2010. We are renting one, and living in the other. We want to have children in a year or two, and know that's going to be expensive. Does it make sense to throw as much money as we can to pay principal on one of the two mortgages so we have enough equity to try and refinance? Or should we just sock away as much money as possible for later through investing it to have cash reserves for then?

Michelle Singletary: If you are going to sell both or even one soon I would not throw money at the mortgage. I would plan to sell and get what I could out of the places.

Instead, keep the money in case you have to bring money to the table. But if things turn around, you still have your money.

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Anonymous : Michelle, I am a very emotional spender. I buy lattes because I've had a hard week, buy take out because I'm too tired to cook, and buy myself books and clothes because...well, because I want them. None of these are big ticket purchases, but I will spend my entire grocery budget on lattes and a few frozen pizzas. I know how to make a budget, I contribute to an emergency fund (only to withdraw from it to cover impulse purchases I've made.) I "know" what I'm supposed to do, the problem is using my brain and not letting the "but I want it" mentality take over. Do you know of any books that specifically address the emotional aspects of spending and saving?

Michelle Singletary: This may sound too serious for your situaion but try Debtors Anonymous. This is a forum for people who have lost control or have difficulty curtailing their spending.

I'm not saying you are completely out of control but this organization and the meeting may help you figure out a way to get out of this pattern.

Things may be managable now but if your income drops or you lose your job, you will surely wish you had some of that latte money.

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Mountain View, Calif.: In response to Alexandria, Va's comment about 401(k). I've been watching my retirement balances stall for the past 6 months even though I continue to contribute. What I tell myself is that everything is on "sale" right now and it just means that I'm buying a lot of shares in my investments which will then take off later in the future. I like to look at the bright side of the downturn!

Michelle Singletary: Exactly.

Now as one poster has pointed out, if you are near retirement you have to look at things differently, such as preserving your priniple. In that case, talk to the company managing the fund and get some advice. Many of the companies, like Vanguard, now offer advice for a reasonable fee.

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Cheltenham: Hi Michelle, Stupidly, a couple of years ago I helped my sister rent and you guessed it she fell behind in the rent and I had to pay a lump sum just so she could stay the last few months of the lease. Recently I checked my credit report and the company has dinged me and her (which they'll never get the money). I would like to settle the debt but was wondering if I should ask them if I can pay a portion and get this off of my credit instead of the whole thing. I was told by the property manager that once I paid the lease out I would no longer be responsible. I have excellent credit other than this one blemish. Needless to say, I've learned the hard way.

Michelle Singletary: I'm a bit confused. I think from your posting you have already settled this debt. If that's so, what you are trying to do is get the company to remove the negative information. They probably won't since really the rent was paid late, etc.

Now if you still owe money as part of this deal, then yes, see if you can get them to settle and remove the negative information. Make sure you get everything in writing before you send off the money.

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Ashton: Remember, 0% interest for a car loan often means a higher price. Paying cash for a new car gives you price leverage!

Michelle Singletary: Very good point!!!!

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Downside to Interest Free Loans.: Michelle, no one has mentioned that the interest free loan with its payments will show up on your credit report, therefore lowering your credit score. It is better to avoid the loan altogether!

Michelle Singletary: Well, not sure the IRS will be reporting this loan to credit bureaus but like your last line anyway!

And if the IRS doesn't it is likely that the debt will be counted by lenders should you need credit in the future.

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Chicago, Ill.: Hi Michelle,

I'm 34 and feeling like my rent money is dissolving into thin air. However, I don't have enough saved for a down payment for purchasing a condo. I see a lot of postings for rent-to-own condos...you pay rent, and if you decide to purchase within a year, you get 50% of rent paid toward purchase and within 48 months, 20% towards purchase. Is this a scam? Really bad deal?

Michelle Singletary: Hi. If you check out the condo and it's definitely a place you want to live I like the rent to own deals.

Just be very careful that you do all your homework. For example, often condos where there are a lot of renters are hard to sell because the banks like to see more ownership.

Make sure there's a strong condo board or association that is collecting condo fees. Take a look at the capital improvement special assessments that have been charged over the years to see if you could handle that.

But if all that looks good, it's a good way to get into ownership.

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Brown Bagging It: When you buy the loaf of bread, the peanut butter, the jelly, the cookies, and the lemonade from the store you have lunch for days. When you buy your lunch from a deli or a restaurant you have lunch for that day, maybe the next if you're lucky enough to get big portions. What's so tough to understand about that? It's simple economics. Not having to buy your lunch everyday because you've purchased the ingredients for a few days worth DOES save you money. Good thing they're in this chat, the bagger post clearly needs your wisdom.

Michelle Singletary: I agree.

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Reston, Va.: Michelle, I'm having trouble accumulating money in my emergency fund because I don't have a particular goal in mind. If asked how much I'm trying to save, I wold answer: "a lot." It feels like "a lot" is so much money, I will never actually be able to save it, so I withdraw from the account because "I'm never gonna save enough, so why try." How much money should be in your emergency fund? And what kind of account should your emergency fund be? (eg once I meet my target, should I move the money from savings to a CD or something?) Thanks for the help.

Michelle Singletary: I totally understand your problem. Big numbers scare people away. It's why lots of folks don't save for retirement. They hear they need this HUGE amount of money and they just say, what the heck, I'm going to live for today.

So this is what I do personally. I save for a what if.

What if I lost my job. So I save to pay my household expenses for at least six months. And don't let that number scare you. Just start with say $10 or $25. Before you know it you will have one month's of living expenses. That will in turn energize you to reach that 3 to 6 months goal.

I save for the what if my car breaks down, my kid goes running out the door, falls down and cracks his tooth. My dental insurance will cover some of that but not all. So I have a "life happens" fund because life happens. I use this to save up for the next car I will NEED or to replace something broken in the house, etc.

The next what if...is retirement. What if Social Security isn't here when I retire? With my home paid off (by the time I retire I pray) then I'll have enough money to eat, buy gas, etc.

Then what if my kids don't get a scholarship to college like I did? I could say to myself my kids are smart, I was smart, I got money for college so surely they will too. But what if they don't? So my husband and I are saving enough to at least send them to a state school.

Or, for you, it could be paying cash for your next car or cash for your next vacation.

You set the goal and just aim for it. Don't let the big numbers scare you. Just go for it.

As for where to put emergency money keep it close and safe -- highest yiedling money market or savings account you can find.

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Tulsa, Okla.: My husband and I have gotten into a lot of credit card debt - about $50,000. He is paid salary plus commission and we were doing well when he was raking in the commission but now things have slowed down and we are not making enough to cover all our bills. We have scaled back on eating out, purchases and hair care to the point that we never make purchases. Should we try to get a consolidation loan to pay the credit cards off and lower our monthly obligations?

Michelle Singletary: Debt is what got you into this mess.

Try this. Go to www.debtadvice.org. Find a credit counseling agency near you and get on a repayment plan. And one or both of you may need to get another job.

But don't fall for that use this loan to get rid of these other loans.

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Anonymous: Michelle, I became disabled about 20 years ago so my sweetie (that's Northern for Boo) and I took a big financial hit. During that time we've basically learned to live on air and value the non-material side of life--not bad lessons to learn, really.

I'm now doing much better and have been working very part time for the past year. I have banked almost every paycheck and have started laddering CDs to create that emergency fund we never quite got to. My question is: How much should we have in this fund? Six month's salary (that's quite a LOT)? Three months?

My husband has short term disability insurance and I am already on Social Security disability. (By the way, for those of you who say "SS won't be there when I need it"...it already IS there for you. It's the best long term disability insurance you will ever have. We would have lost our four-room home and taken up residence in a room with a hot plate without it.)

It took 18 months to get out of denial and accept the SS so we got into a ton of debt. Since then we've paid off tens of thousands of dollars worth of debt, have always saved so we've had the Life Happens stuff down. We have IRAs in both species (Roth and regular) and mutual funds, 401K, etc for retirement. I recently opened two blue chip mutual accounts (one US, one international) with good stats run by a company that uses a team management approach instead of the Super Star style to do a total of $150 in Roth monthly. I figure this is the only time in my life I'll ever be able to afford blue chips so I'm going for it. Finally, I'm using MY money to plan MY retirement! We're over 59.5 so we can take money out without penalty in an emergency if (god forbid) we need to.

I've been nagged all these years by the lack of that six-month emergency fund every financial advisor recommends. But I'm wondering if we really need a whole six months worth of both salaries... would three months do? Six months is a LOT of money.

Thank you. Sorry to be so long winded. Sherry

Michelle Singletary: No problem Sherry, not long winded at all. You deserve my time given all that you've gone through.

If you know you can cut back and live okay until your income returns should you lose your jobs or can't work then 3 months would be okay. Just aim for the six but take your time. That way you have that extra cushion. But I wouldn't worry myself sick about it. Three is good.

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Lunch and food in general: Michelle, I agree with you that you are better off brown bagging it for lunch at work.

Another thing that I'd like to remind people is that buying a larger size that you end up wasting part of is also a loss. I bought 3 pounds of ground hamburger only to have 2 emergencies in a row, and never got a chance to individually wrap and freeze the meat. $7.00 was a buy, but it's not when it ends up in the trash!

I'm dealing with the problem that I got in the thrifty train, only to find myself in a month of emotional spending. I'm still trying to get back on the train and get these messes sorted out. Bringing lunch to work doesn't sound like a lot. But if I bring breakfast and lunch to work each day, I stay well under $40 a week for food. If I don't, I can easily double that.

Stay the course, and if you get knocked down, get back up!

Michelle Singletary: I totally agree. Watch those mega buys. I sometimes do the same thing with food and wasting it (yes people I am not perfect).

But if you do make that mistake just keep that memory of all the money going in the trash in mind to take the time to wrap carefully and eat the leftovers in a timely manner.

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Free loans: There really is no such thing as 0% financing, if you take the time value of money into consideration. If the market is working correctly, the net present value of what you are buying should be the same whether or not your are paying 100% cash up front or financing at 0% or financing at 5%. Of course the amount you pay in interest will change. But they hook you with the 0% financing, making you think the thing your are buying costs less.

Michelle Singletary: Interesting point. Thanks.

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Free Loan -- I'm taking it!: My wife and I (25 years old) lived in a crappy, low rent, 1 bedroom apartment for 4 years while we saved up our money. We were able to pay for our own wedding, pay off our car in 2 years, and save up $85,000 to put as a down payment toward our first home (which we closed on last week). The only other debt we have is a student loan, whose entire balance will be paid off by my employer after 2 more years working there (so it would be stupid for me to pay it off early).

I take exception to the fact that you present this $7500 tax credit as a "bad choice" for everyone. I have proven myself to be responsible with money, and will take this opportunity to buy furniture for our new home.

Just because your target audience may be those who cannot manage their money, don't make the rest of us feel bad for taking advantage of an interest free loan.

Michelle Singletary: Go ahead then.

Be hardheaded since you know everything.

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New York, N.Y.: Hi Michelle-

I heart you and your advice!

I'm 36 and single. I went back to grad school later in life and have a ton of school debt. I also HAD a ton of credit card debt but I will have it paid off by February (yay!). I rent and have a roommate. Come February, I will have the money that I have been paying to my credit debt (over $1000/month) and want to put it towards a good place.

Some thoughts: -first, the emergency fund. -second, increase the monthly payment to my school loans -third, increase my 401K percentage

Now, here's the tricky part- I don't really have a desire to own a place. I never have. I live in a big city where renting is the norm and I have no interest in home repair, home decorating, gardening, etc.

So, do I pay off the school loans at a faster rate or is there a better way to use my money?

Thanks and keep up the great work!

Michelle Singletary: Pay off the student loans at a faster rate.

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New York, N.Y.: I recently watched "Maxed Out" (available via Netflix). It was both fascinating and depressing. I never thought about the national debt in that way. The filmmaker was clearly ahead of the curve - I can only imagine what a "Even More Maxed Out" movie would look like these days.

Have you seen the movie? Any thoughts?

Michelle Singletary: I did see Maxed Out. Great eye opener.

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Baltimore, Md.: Hi Michelle,

My kids age 12 and 14 recently received a gift of $5000 each. I need advice on where to put the funds for college savings. With the recent stock market performance is the 529 investment plan still a good idea since my kids will be entering college within the next 4 - 6 years?

Michelle Singletary: I think it's still a good choice. You still have more than 5 years considering they'll be in school at least four years.

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Credit control: Michelle, because of your column, I now want to live a debt free lifestyle. My boyfriend does not share my view. He is a "bargain shopper" concerning debt (looks for the "no interest for 24 months" type deals) and is obsessive about paying things on time, monitoring his balances, and paying off his "every day" credit cards in full every month. He feels that as long as he doesn't incur interest or finance charges...then why not pay for the snowblower over two years? In your opinion, what is the error in his reasoning?

Michelle Singletary: He loves debt. He like so many people in this chat think debt is a good tool.

I think it's slavery.

Keep talking, but in the end if he doesn't see it your way I would seriously consider finding another boyfriend.

And I'm not trying to be funny. You should be with someone who shares your money values.

All that let's play with other people's money is exactly what has got this country in the current mortgage mess.

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Alexandria, Va.: Hey Michelle--Love the chats. Several relatives give my young kids (3 and 5) savings bonds for Christmas and each birthday. We have established 529 Plans for each. Would it make sense to "redeem" the savings bonds now and place them in the 529 Plan? I'm thinking there is more to potentially gain by doing so. Thanks.

Michelle Singletary: You could do that, yes. And you could also nicely ask that in the future these relatives contribute the money to their 529 plans instead.

If they bulk, don't push the issue.

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McLean, Va.: Hi Michelle,

I love your column. I just read your weekly e-mail and it referenced a column that touched on how the housing crisis is affecting renters. My fiancee and I are looking for a new place and I am wary of people renting out their homes precisely because of issues they may be having with their mortgage. Do you have any advice on how to ensure they are in good standing on their payments to avoid the hardship of being evicted due to foreclosure?

Michelle Singletary: This is such an excellent question and one I hadn't thought of.

I guess you could ask the landlord for proof they have been paying their mortgage on time. They should have monthly statements, etc.

If they bulk don't rent from them because I think given what has happened to so many renters it is fair to ask and require proof they are in good standing with their mortgage company.

Good thinking on your part. Let me know how this turns out. You can e-mail me at singletarym@washpost.com.

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Anonymous: Is it possible to post the link to the $7500 tax credit article that has everyone all hot and bothered. Thanks!

washingtonpost.com: Think of Tax Credit as 15-Year Loan, And Rethink Whether You Need It

Michelle Singletary: Here it is.

And let me add. Just look at all the push back I'm getting from suggesting (albeit strongly) that you shouldn't go into debt.

Unbelievable that we are a generation of people who want to borrow to wealth. For example, people keep saying just put the debt in a savings account. Well, that won't earn much and you've taken on debt for what $50 bucks.

And you certainly wouldn't use debt to invest because you could lose it all or much of it raising your risk and cost.

So if you want furniture, save and pay cash for it people.

Geesh. You would think I was selling snake oil.

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D.C. - free loan: Michelle- I think you give great advice, even if it's not what people want to hear. Keep it up!

We're first-time home owners ourselves and we're not taking the loan. We make close to $200k, put 20% down on our home, and have credit scores in the 800s. The only debt we have is one student loan and the mortgage. I'd say we generally manage our money well. But a loan is still a loan, and in the end, it needs to be paid back. What happens if an emergency crops up in the next 15 years and all of a sudden, those loan repayments are wiped out by other need? It's bad enough to owe our mortgage company and Sallie Mae - I'm sure as heck not adding Uncle Sam to the list.

Michelle Singletary: Amen!

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Richmond, Va.: I'm sorry, but it's 'balk', not 'bulk'

Michelle Singletary: I'm sorry if you don't understand I'm typing fast to get to as many guestions (oh right questions) as I can.

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LoCo, Va.: As someone who gives savings bonds to my niece and nephews, I wouldn't mind if they went in a 529 plan, but that wasn't my intent in giving them.

I give them so that they grow up with the idea of savings, and so that maybe, when they need the security deposit for their first apartment or some other lump sum that is hard to find when you are young, there is a little extra help.

So, keep in mind there are other things to save for besides college.

Michelle Singletary: Good point.

And as the giver you might communicate that to their parents or the kids if they are old enough.

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Frederick, Md.: I would like to have a roommate to help offset my housing expenses. I am a 40-something divorced woman with a teenage son that also lives with me. This is a four bedroom single family house. I was thinking about renting out the master bedroom/bath with house access to kitchen and laundry. What do you think of this idea? Do you have any contract examples for this type of setup? My biggest concern is having someone that ends up being an unfavorable housemate.

washingtonpost.com: Michelle answers this question in today's newsletter. You can sign up for the Color of Money weekly newsletter here.

Michelle Singletary: See the note.

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Maryland:"If I was smart, I'd just leave the money there for as long as I was living in a house, because there's nothing worse than finding out that your main sewer line has to be replaced and you're going to have to find the money to do it, today.

Michelle Singletary: Or if you were smart you would SAVE for your emergency fund and not use debt to build up savings."

AMEN! Having JUST been in this position, I can't tell you how good it felt to know I had the money saved up and would be able to cover it. Life happens. That's why you save money. Any little bit helps.

Michelle Singletary: It certainly does.

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Park View, D.C.: Hi Michelle,

Beyond my husband's student loan (less than $5000 at this point), the only debt we have besides our mortgage is our home equity line. We owe around $60,000, paid down from the $90,000 we used to renovate our $180,000 rowhouse (I know, we got in at the right time). We've been paying off interest every month - but just had a son six months ago and now all the extra money we had been saving is going to daycare costs.

I understand that life changes necessitate life adjustments, but this worries me. Instead of paying an extra $1000 on the home equity per month, we're now contributing about $300. What do you think? We have no credit card debt, are maxing out IRAs and 401Ks, and have $50,000 in the bank. Are we on the right track? Thank you so much for your help.

Michelle Singletary: I would sit down and look at all your finances.

Look at it this way, besides your main mortgage you have $65,000 in debt. That would scare me with a new baby.

So perhaps you might pull back on putting money in your retirement account and perhaps use some of that $50,000 to pay down that $65,000.

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Richmond, Va. again: Testy testy! Just trying to help. you'd used it twice, so thought it wasn't a typo.

Michelle Singletary: Sorry. My sharp typing does get the better of me sometimes.

You type fast in these chats. You know what you mean, you type something else.

All I'm saying is give me a break. Trying to help people and perhaps not paying as close attention to what I'm typing because I'm trying to get to a lot of questions.

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Maryland: Got your email newsletter today, and I have to say...I never understood the appeal of leasing. You never own the car! I love knowing my car is MINE. I have no car payment. I follow all the maintenance recommendations, so I'll get about 8-10 years out of it.

I don't need a new car because there's a better/newer model out there. When it becomes more expensive to repair my car than it's worth, THAT'S when I need a new car. That's how I was raised, and I see no reason to change that!

Michelle Singletary: Me either.

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Comment to McLean, Va.: I work as a foreclosure paralegal and I see renters evicted all the time because the owner has defaulted on the loan and the renters have no idea. I'm not sure if the owner would go for this, but perhaps the owner would sign a waiver allowing the mortgage company to discuss the account with you, that way you can check periodically to make sure the owner is current on payments.

Michelle Singletary: Really, really good idea. Thanks.

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Washington, D.C.: Dear Michelle,

Love your columns and chats. Can you offer any suggestions on how I can help plan for my mother's impending retirement in 2-3 years? As a single parent who has experienced prolonged periods of illness and unemployment, she has not been able to build up her retirement savings even close to where they need to be at this point. She has been steadily employed for several years and is contributing what she can to her 401K, but her monthly income is going to be low. I make an okay living as a professional in a growing field and have good saving habits (learned from my mother, of course) but there will be limits to what I am able to do. Please help!

Michelle Singletary: Tough, tough question and not a lot of time.

I suggest you to go to aarp.org. The site has a lot of great information and tips and resources that could help you help your mother.

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Columbia, Md.: I am really, really considering bankruptcy. Less than 5 minutes before this chat started I received a call from an attorney threating me with wage garnishment(they already have judgment that I am paying), But I am just tired of juggling. Seems like I'm robbing Peter to pay Paul. When I think I'm getting ahead, seems like something always happens. Perhaps, bankruptcy is the best option. My credit is already messed up with judgments etc. I bet my credit score is so low it's not on the meter. Any advice? Oh yeah, I already have a second job, I'm just trying to catch up! Any Advice would be helpful!

Michelle Singletary: Before you jump to bankruptcy try that Web site I mentioned, debtadvice.org.

There is help out there. If you can hang on, try to. Bankruptcy is such a rough thing and just think you bought all that stuff and said you were going to pay for it. Keep trying to live up to your work.

Do what you can to get on a payment plan to get rid of this debt even if it does take you five or six years.

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Savings for a child: I have an ING direct savings account for my 3-year-old son. Whenever he receives money for Christmas or B-Day I put it in his savings account. I also contribute to a 529 plan.

Don't put all your eggs in one basket! Savings bonds are good too.

DIVERSIFY!

Michelle Singletary: Love that word.

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Michelle Singletary: Well, got to run folks.

So sorry if I didn't get to your questions.

But new in my weekly e-letter is a feature in which I answer some leftover questions. So sign up for the eletter and you may see your question answered there.

Thanks so much and have a great weekend.

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