Color of Money Live

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 all. Thank you for joining me even if you haven't sent in a question. And thank you if you did.

There are a lot of questions so forgive me if I don't get to yours. But I do read them all and even if I can't answer it today I often use questions for future columns.

Just wanted you all to know I appreciate your participation -- even those who disagree, challenge or berate me. That's what makes this forum interesting -- different voices.

So let's get started.

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Are credit monitoring services worth it?: Hi Michelle - My wife and I signed up for a credit monitoring service in late December, right after her sister had a brush with identity theft, and right before we bought our new car.

I was curious to see how fast we would get reports of new inquiries (like the credit report we pulled to make sure that we were "highly qualified borrowers", and the credit report that Honda Finance ran before giving us the loan) and new accounts opened (our new car loan).

We bought our car on Dec. 31, and waited for the credit monitoring service emails to come flooding in. One week, two weeks, three weeks went by, and nothing in our inbox, and when we checked online we got the same "No activity has been reported..." message. I called Honda to ask how quickly they report new car loans to the credit bureaus, and they said it's just once a month, but he didn't know what time of the month. So we waited. Four five six weeks later and still nothing reported! I canceled the service yesterday. If they can't notify me within six weeks of a $20k loan being taken out in my name, what good are they?

Plan B is to get our free credit reports once a year from each bureau, staggered so we get one every four months.

But seriously - did we just pick the wrong service (creditreport.com)? Or do merchants take so long to report activity that these services are useless?

Michelle Singletary: I love your question and comments because it points out the flaws in the monitoring system. I purchased a plan like yours myself several years and came to the same conclusion you did. Although I can't say there was information that never showed up since I don't believe I took on any new credit during the year we had the service.

I'm not sure if your situation is typical and can't speak to that company but it's a good tale for others to consider.

I think just monitoring your credit reports is best.

Besides the monitoring service is "after the fact" anyway, meaning they only notify you (or not in your case) after the credit has been taken out.

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Davidsonville, Md.: Hi, Michelle, it's often pointed out that you need a license to drive a car, but not to become a parent. While not as important as parenting, I'd like to add home ownership to this list. I own a general purpose home maintenance/repair operation, and business is booming. In fact, I would like to have less of it. This is a list off the top of my head that would cut down on my work, and homeowner expenses:

If you don't change the filters on your electric or gas furnace regularly, your heating and cooling costs will go up, and your house will not be as clean. If you don't change the oil filter on your oil furnace, which may require outside help, you may blow the entire furnace. If you leave--leaves or other debris on your wood deck, the deck will rot. If you do not add a layer of waterproofing once water no longer beads on the deck, the deck will rot. If you have a septic tank or, more importantly, a septic field, add a spoon of a specially formulated commercial product each time you flush. A full septic field is among a homeowner's worst nightmare, and we had to deal with 3 of them last year.

Before the first hard frost, cut off water to your outside spigots and allow them to drain. Check out which pipes might be susceptible to freezing and keep a hair dryer handy in case this occurs. Foam cushioning for exposed pipes is expensive, but not as expensive as frozen pipes and resulting damages. Clogged gutters can leak into your house. If they freeze, you will have broken gutters. When they thaw, you will have more water problems.

Leaky roofs and faucets will not clear up by themselves, nor will clogged drains or damp basements. Most Md. counties have inexpensive adult education classes dealing with basic aspects of home maintenance. There are also excellent books on the topic.

The reason for this post is the homeowner who used a blow torch to try to thaw his frozen pipe a few weeks ago and burned his house down in the process. My wife said, you should write Michelle. So now I am doing it.

Michelle Singletary: Your wife was right.

And thanks for this post. I know you are right.

I can't tell you how many people buy a home cheering about that darn tax deduction not fully understanding that deduction can be wiped out by all the necessary repairs you have to make every year.

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Washington, D.C.: I've seen ads, possibly even in your paper and on your website, for a "free" weekend workshop in D.C. by the Robert Kiyosaki organization, operated by the investment author-guru, darling of PBS fundraisers. Critics say that these weekends are devoted to getting participants to sign up for "advanced" programs that sell for as much as $45,000 (yes, five figures). There are numerous web sites that say this guy's advice is impractical, impossible and sometimes even illegal (like encouraging people to falsify mortgage applications), his own vague life story changes every time he retells it (no reporter has ever been able to find his purported "rich dad"), and his organization seems to have drawn a lot of complaints for shady business practices. Your web site doesn't seem to allow the posting of links, but a quick Google search for "kiyosaki scam" and "kiyosaki fraud" brings up plenty of interesting material. Any thoughts about this guy?

Michelle Singletary: Not a fan of him or his system.

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Kensington, Md.: Dear Michelle, We bought a house at the peak of the market, and we paid too much, even at the time. I underestimated how much I would miss living in the city and walking everywhere. I hate having to deal with the lawn and repairs. Since then, I lost my job and we had a baby. I want to at least look into selling at a loss and renting somewhere less expensive in a location we like better. My husband says that now is probably the bottom of the market and we would be fools to sell now... just wait it out a few years and we'll be fine. We would probably lose most of our down payment when you combine our overpayment with the market decline and seller's costs. We have some savings and are frugal so we are in no immediate danger, but I think this slump could last a while. I know you don't have a crystal ball, but any general suggestions on how to handle this impasse? I feel so emotional about it and could use the perspective of an impartial third party. How can we step away from the emotions and get a rational take on our situation and our options?

Michelle Singletary: I feel you and have heard from so many people in your situation.

So for now do this. Become better informed.

Find a really good real estate agent and talk to that person about how much you could get for the house.

Then weigh all the costs of selling, the money you will have to bring to the table so that you won't walk away with leftover debt. If you do a short sell that will ruin your credit -- unless you pay off what's left owed to the bank. Do you really want to do that now?

Add up the cost of moving (moving van, packing, etc) and first month rent, security deposit, etc.

By the time you look at all those red numbers you might not feel so bad about your situation, especially if it's not about your ability to make your mortgage payment.

I think your husband is right. You may want to sit tight for now.

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Upper Montgomery County: Michelle, could you explain again why using your home's equity to pay off debts is bad? We're about to refinance and have some credit card debt from an unexpected job change after maternity leave (unexpected--left when I saw the hardwiring on the wall of a lay-off coming, was incredibly lucky to find a gov't job fast, but for much less $$). My husband is strongly advocating that we take extra money on the refi to pay off that debt. I gave him the "don't use your house as an ATM" speech and it's not sticking. We're lucky to have a safe cushion of equity in this downturn, along with two gov't jobs, but still. How do I talk him out of this? Am really hoping that our mortgage broker says no way and makes my life easier. Thx!

Michelle Singletary: Well first of all you are taking "unsecured debt" = credit card debt and turning into "secured debt" = house.

That means you are taking debt that isn't backed by anything other than your word to repay and putting it on your house. Can't pay that and you lose your house. Um...tell hubby to read the news. Lots of people are in the jam they are in now with their homes (upside down) because of a lot of added debt to the main mortgage.

Also people pay off that credit card debt and then get right back into debt. Not saying that's you but it happens more often than you think, even to people who have handled their money well.

Finally I find when it takes a little pain to patiently pay off that debt it's a reminder to people not to go there again.

So if I had a vote, which of course I don't, I wouldn't do it.

Your husband should listen to you.

And of course you know you don't have to sign the refi papers if you disagree with this decision to role in the credit debt. Just saying... you have some power here.

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Greenbelt, Md.: Ok don't beat me up up too bad! I did what I had to do, now I just need some advice on how to move forward! After much consideration, I filed bankruptcy. I felt I had no other choice, judgment against me, garnishments, etc. I am paying 100% of my debt back, I just needed to reorganize. I have learned a valuable lesson from this and will never put myself in a serious harmful financial situation again. How do I bounce back? I would like to purchase a home again? I have a very good job and salary now. What are the chances of me being able to purchase a house in the future? PS. I finally started that "life happens" funds and proudly say I have a couple hundred saved; not much but I'm doing it. Thanks, Starting over in Greenbelt!

Michelle Singletary: I'm not going to beat you up, especially since the deed is done. Besides looks like you've done some beating up all by yourself.

First, stop thinking about getting into debt again -- even for a home.

Start there.

I'm not saying give up your dream of homeownership but stay in the moment and don't worry about going there yet.

The lesson you should learn is to do things in order. And you are doing that by having a life happens fund (for those of you not sure what that is, it's a fund for car repairs, just stuff in life that happens and you need money for).

Build up your emergency fund (three to six months of living expenses).

Pay off that bankruptcy debt.

Save for a down payment.

Then after you've done all that you can begin to think about owning a home.

So what I'm saying is take your time. If going forward you pay ALL your bills on time, stay out of debt once you get out of debt you can be a homeowner.

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Entitlement and the stimulus package: Michelle, where do people get their sense of entitlement? From Tom Sietsema's chat to yours, posters seem to want something for nothing, or very little. "The waiter looked at me cross-eyed. And they didn't comp my meal/dessert/drink!" "I did everything right and bought a house I could afford, but now it's not worth very much. Where's my bailout?"

Listening to the auto executives, the bank chairmen, the owner of Peanut Corporation of America, I realized that these people have that same sense of entitlement. No accountability or responsibility, or the recognition that thousands of families could be helped with the cost of one corporate jet or profit report. The tipping point came with the full-page Wells Fargo ad in yesterday's Post defending their bonuses and incentive trip to Vegas (canceled) for employees. How much bailout money was spent on that ad, those bonuses, that trip?

I blame it on Reagan and the rise of so-called "Christian" conservatives. He made it ok for people to be greedy and selfish while at the same time, proclaiming to take the high road on moral issues. I've always felt that with that rise, a page of the Bible was left behind.

There's been nothing Christian about how the religious right has run this country (into the ground). We were told it was ok to spend what we don't have, buy what we don't need. The country was attacked and we were encouraged-no, implored-to buy a new car. The poor were on their own.

I'd love to ask the people who voted for Bush in 2000 and 2004 how they're doing now. Did you vote for him because of his stands on abortion, gay marriage and the war in Iraq? Well, while he was "preserving" those things for you, he and his cronies were raping this country. Morally and economically. Not only have children been left behind, but the poor and the disadvantaged. Remember, it was a "pro-life" president who stayed on vacation while New Orleans drowned. I don't think Obama has all the answers and he inherited a mess. But repeatedly, he has told us that we're all in this together. What a refreshing change.

I'm not a religious person but I know what page is missing from the Bibles of the religious right: Feed the hungry. Shelter the homeless. Heal the sick. Clothe the naked.

If the stimulus package accomplishes these things, we all benefit. I don't need a bailout or a rebate check. I'm not entitled. I have a decent job, roof over my head, food on the table and a little (very little) money in the bank. Count your blessings, people, and lend a hand. E pluribus unum.

Michelle Singletary: I understand your venting. And much of what you say is true but I think you paint too broad a brush by attacking conservative Christians.

I've found the sense of entitlement crosses all religions, race, sex, income, marital status, state, hair color, etc.

Bush was wrong about a lot of things but he didn't bring this country down economically all by himself.

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Anonymous: Michelle, I'm very interested in your opinion about my credit card problem. I "loaned" a close friend (ok, then bf, now ex) money by taking on his debt on my credit cards--it made sense at the time, but quickly got way out of control (I'm curious about how many people are helping others out in these tough times).

We started with a signed agreement about the terms, but he hasn't been able to stick to them. We're currently renegotiating the agreement and because I loaned him much more money that I expected to (trust me, dire circumstances) the original interest rate doesn't even cover what I'm being charged on my credit cards. I'm paying off my cards as quickly as possible, and I'm planning on forgiving part of the debt, but right now we're stuck on the interest rate. He thinks one thing, I think another--in this sort of situation, how do you come to what's fair?

Thanks!

Michelle Singletary: Oh girl. Where do I start.

First, I hope you don't mind but I have got to point out that your note/story should be a lesson to ALL.

Do not, do not, do not, do not borrow money to help somebody else out. Not your boyfriend, pookey, boo, pooh bear, mama, daddy, cousin Peaches...NOBODY. I don't care if the situation is dire or not. See it puts you in a pickle. You are using debt to bail somebody out. Not good. Ever.

So what's fair?

Doesn't matter. Cuz you are stuck and that ex is going to do what he wants to do. Get what you can and then move on.

And realize in the end you have to pay more than you want. Because at some point if he doesn't want to pay, he ain't got to pay.

So keep being nice to him and compromise even more than you like so you can at least get some of your money back.

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Sugar Land, Texas: I'm still employed full-time; however, I lost quite a bit of money in the stock market and my employer of my part-time job died and I have had no luck securing another one. I'm struggling to pay my minimum payments on my credit cards and the advice I'm hearing ranges from--to stay away from credit counseling agencies or file for bankruptcy. I was not eligible for home refinancing because of my debt load, even though my score was 667. I thought about asking for assistance through my EAP at work. I want to meet my financial obligations and am not looking to have some of it "forgiven".

Michelle Singletary: Try this site for credit counseling, www.debtadvice.org

Doesn't sound like you are bankrupt. You just need a plan -- and another part-time job.

Hope it works out for you. Try the site and let me know.

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Los Angeles, Calif.: Thank you so much for providing these forums. I have some debt that is very manageable (student loan, car payment, and about $4k on a 0% card that I plan on paying off before interest rate kicks in). I also have a $12k emergency savings fund. You are a big advocate for no debt and I get that. I am afraid to use my emergency fund to pay off debt because if I were to get laid off I would no longer have an emergency fund to tide me over. I'd love to hear your strategy for this type of situation.

Michelle Singletary: I do not advocate using your emergency money to pay off debt.

I urge people to keep and/or build up emergency money so they don't go into debt if they lose a job or become ill, etc.

So stick to your plan, unless the debt has crazy interest rates. Then I might reduce the emergency fund a bit to knock some of it off.

For example, if you think your job is stable then I would take $4,000 of that $12,000 and pay off that credit card. Then take the money you were devoting to that debt and go after which ever debt -- car loan or student loan -- is less.

At the same time you can continue to build back up your emergency fund.

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8,000 dollar tax credit: So you were against the 7,500 dollar tax credit earlier because it was more of a loan. What do you think about the 8,000 dollar tax credit, is this a loan too?

Michelle Singletary: The $7,500 was not "more" of a loan. It was a loan. For 15 years. To the IRS. Still against it.

The $8,000 tax credit is actually a tax credit. You do not have to pay it back. If you qualify go for it.

On theory I'm against a lot in the stimulus package -- like the credit and tax cuts -- because it puts our government further in debt.

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Arlington, Va.: Michelle, we have two children, ages 8 and 10, and have been talking with them about the value of money and saving, but also about what they are hearing about the economy from their friends and others and what that means. We recently bought them each a set of silver coins so they could have a first-hand feel for what an "investment" is. Do you think it's too early to talk to kids this age about money and investments and involve them in it?

Michelle Singletary: I say the moment the kid starts asking for stuff that cost money, start talking.

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First Time Home Buyer: I am really glad you are doing these chats, they are extremely informative! I hope you are able to get to my question, I will be in a meeting at 12 so I am submitting early. Anyway, I am 29-years-old, no debt, about 50k in saving, a credit score in the upper 700s and a well paying job (mid 60s). I am planning on buying a home this year with the 8k tax credit in the new stimulus bill. My question is, with the basic information I gave you, what should my target price range be for my first home? Thanks!

Michelle Singletary: For me, I wouldn't buy a home in which the mortgage takes up more than 36 (to 38 max)percent of my NET take home pay.

Not gross, but net.

So you should look not at just what the bank says you can afford but how much that mortgage takes up from the pay you bring home. As I help people in debt many are struggling because their rent or mortgage takes up more 40% or 50% or 60% or 70% (yup have seen that) of their take home pay.

You can't live well with that much of your pay going toward housing.

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Logan Circle, DC: What's the best way to calculate your W4 withholdings?

My husband and I are new-ish home owners and had far too much withheld last year resulting in a HUGE tax return. I'd like to adjust our pay to get that money over the course of the year but the IRS withholdings calculator told us we're withholding too little and other calculators are telling me to increase our withholdings.

Is there an easy way to figure this out or are we just supposed to guess and hope we're close?

Michelle Singletary: Go to www.irs.gov and search with the withholding calculator.

It will help you figure out what to withhold for the coming year.

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Partial Payment?: I am seriously delinquent on a $1100 credit card bill (over a year) and I just received a notice asking me to pay a certain amount for six months, and they will revisit the payment issue at that time, or I could pay $700 now and not have to pay anything else/close out the bill. I want to resolve this, but am not sure how paying a partial payment will affect my credit score. Should I try to negotiate a monthly payment that will totally resolve the bill? Will they entertain that?

Michelle Singletary: The question is do you have the $700.

If so, are you crazy!

Take the deal. Be sure to get it in writing before you send the money.

And I know you are not asking me about a credit score which is useful if you are going to get MORE debt.

If you don't have the lump sum to settle the debt, agree to monthly payments you can afford and this time stick to your word to pay it back.

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Anonymous: I loved your article on reconnecting and date nights. We've been married for over a decade now, and we make a point to have a "date night", though it isn't always the same night every week. Rarely is this an expensive date. Our favorite date nights are going to the bookstore and staying home with take-out, drinks, and our favorite mmorpg (online game). When the weather is nice, we like to hike. I realize the first two ideas only appeal to the geeks in the crowd, but the connection is the same. We're doing something together and talking about things completely unrelated to everyday life. It's a lot of fun, and doesn't cost very much at all. When we lived closer to D.C., we loved to come down to the Mall at night. It is so pretty at night, and the crowds are nonexistent even at the height of tourist season.

Article Link: Short on Cash? Invest in the Relationship (Post, Sunday, February 8, 2009.)

Michelle Singletary: Thanks for sharing. Lovely story.

I love the date nights my husband and I have. Strong marriages are good for everybody -- your family, community and country.

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Baltimore, Md.: My boyfriend and I have been living together for 2 years. He was recently laid off and we are looking into health care options. I have domestic partner benefits through my job. Is there any downside in taking advantage of them?

Michelle Singletary: I would make sure he is able to pay for the extra cost by getting some work?

If so, I don't see the downside (other than telling you to stop living together and playing house).

But it is nice of you to help him stayed covered since medical debt is one of the top reasons people fall into major financial trouble.

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Rockville: I am guilty. When we moved to an apartment next to the Grosvenor Metro station, we stopped driving except to the store and church and some errands. So I pay about 66% for rent. I save on gas (about $14 a month) and we take the Metro to just about everything. I think it is my choice. Utility bills are also low with our habits.

Michelle Singletary: WOW! 66%

But if you are still able to save for emergency fund, life happens fund, retirement and live I guess it works. Often people cut elsewhere to make up for the extra cost in housing especially in high-cost areas.

However, you keep saying "we" so not sure if that 66 percent is based on one way or if you are married both.

If you are living with someone, what happens when or if that person moves out and you don't have the extra financial help you may be getting?

Just asking.

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Alexandria, Va.: Submitting this question early concerning FICO scores. I recently checked my credit report and found I have very good credit and scores 716, 780, and 768 respectively. I only have two accounts active, my 1st Mortgage at 40k and my HELOC at $15k. I was talking to a friend about closing credit card accounts that I don't use (4 are over 10 yrs old) and was told that it would adversely affect my scores. I am concerned about ID theft and fraud and think that the less cards/accounts you have open out there, then the less chance of nonsense happening. I like to think I know a little about my personal finances, but have not really got a good grasp of how one is tied to the other?

Michelle Singletary: Your friend is right and wrong.

You could take a small hit to your score because one of the major factors in calculating your score is the length of time you have had accounts open. The longer the better (assuming you've paid the accounts on time).

But if you are not planning on getting any credit anytime soon and you feel better about closing those accounts you should be fine.

You still have a credit history and a good one if you are paying your bills on time, which is the MAJOR factor.

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Washington, D.C.: Not really a question but a comment. Yesterday I made my very last payment to my credit card. Its the first time in 15 years I don't any money to credit cards! All I can say is that at one time I owed over 11,000. I know your readers are feeling worried and think they will never get out of debt. It does take years. But its not a sprint, just stay the course and make sure you are pointed in the right direction. I feel free and thank you for convincing me that all debt keeps you enslaved (I used to think that I just needed to keep my credits cards below $5,000 and that was good enough) I am now adding that credit card payment money to my savings and extra towards my student loan. Keep up the message. and folks, don't give up. Even in tough times you can still make good decisions and you will succeed.

Michelle Singletary: Wow. If I were near you I would give you a big hug.

If you're at work just whisper to yourself, "Free at last, free at last."

Good for you. Great testimony and encouragement to others.

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Virginia: Michelle--a couple of comments, not questions. I also learned the hard way never to co-sign or sign anything. When I was married, my husband wanted to me sign a home equity line of credit to make a large purchase that he said would be great for our family. He basically badgered me into signing this. I grew up in a family where my parents paid cash for everything. I regretted signing it the moment the ink was on the paper. After that, he wanted to take out another loan to finish our basement. I put my foot down and said no I would never do this. Thank God I stuck to that. We ended up divorced and as it was, we had enough debt. But had I signed for that loan too, we would have been in a real mess. I will never, ever, co-sign a loan for anyone, ever again. Not even my children. And I also make it a practice never to loan money to anyone. (I'm not talking lunch money here.)

Michelle Singletary: My no co-signing rule doesn't apply to a spouse. When you are married you can co-sign for a house, car loan, etc. because you are operating as one - or should be.

But you were right about taking on the home equity loan because you didn't want the extra debt. That part of your story is right on.

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36-38% : Thanks for that, it is very helpful to use that as a gauge. When you say "mortgage" do you include condo fees and prop taxes in that percentage, or can that be on top of?

Michelle Singletary: I do include those items because they are part of your housing expense.

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Closing Accounts: If you close all of the cards, you will also greatly decrease your ratio of available credit vs. credit being used. Keep at least one card open.

Michelle Singletary: This would be true if you have outstanding balance on other cards.

But if someone doesn't want credit cards, I'm not going to tell them to keep them because of a credit score.

However, having said that no harm in keeping one that has been open a long time.

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Bowie, Md.: Thanks for the advise about not using "secured" loans (refi's) to pay off "unsecured" loans (credit cards). This simple rule makes sense and is good to keep in mind as my wife and I decide what to include if we refinance our current mortgage. We currently have a $235K, 30 year mortgage at 5.125% and need to replace the 25 year old furnace and a/c soon ($10K). We thought about paying off some credit card debt, $10K, but I now think this is not a good idea. Thanks.

Michelle Singletary: You are welcome.

And you have a pretty good rate now. Couldn't you work hard to save up for the furnace and not pay the cost of a refi?

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Altoona, Pa.: Michelle, I'm not sure if it made it in the stimulus bill or not, but they were proposing to increase the new home tax credit from $7,500 to $15,000. With the new legislation, is taking this credit still a rip-off?

Michelle Singletary: See earlier note.

A $8,000 tax credit made it and it's not a loan.

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Domestic partner benefits: Keep in mind that there are additional taxes as well as the costs associated with putting a domestic partner on your benefits. Most companies impute the company-paid portion of the rates as additional income and you have an additional tax burden. Not saying you shouldn't do it but just be aware of the incremental costs.

Michelle Singletary: If true, good point.

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Not taking in relatives: In a few situations, you have asked people with economic issues if they can't move in with their parents or some other relative. But please don't encourage people too much. In the last 7 months, I have had requests from three relatives to move in because they mismanaged their finances and now can't afford to live on their own. I have refused them because I don't need to take on their issues. I am careful with my money because I don't want to depend on roommates. So please advise people to find ways to reduce their expenses-smaller house or apartment, second job, or even finding a roommate. But do not encourage them to mooch off their relatives. That is not a real solution.

Michelle Singletary: First, I wasn't talking about mooching and honestly I think you are wrong.

Keep this in mind, "To whom much is given, much is required."

At times I have taken in relatives and yes part of the reason they were in trouble was their own fault.

Still I helped. Because I could. You don't have to take on their issues but you can serve as an example and help them out.

Why do we buy these big houses and stockpile money if we are not willing to help those who fall.

You have to be careful about how you help and who you help. I wouldn't take in someone who is abusive or using drugs, etc.

But trifling doesn't get you knocked off my help list.

Don't be selfish in this day and time when people need you.

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Arlington, Va.: If she really has signed documentation about their agreement, Anonymous could take her ex to small claims court to force a settlement structure.

Michelle Singletary: She could. But he could still not pay.

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Seattle, Wash.: Hi Michelle, I love your columns and these chats. I just wanted to say Woo Hoo, I saved up and am finally going on my trip of a lifetime to New Zealand, which I've been planning for about 6 years. Now, should I feel guilty I'm not spending my extra cash in America to help our economy? Cheers!

Michelle Singletary: Nope. Go have fun.

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Hoboken, N.J.: Will the stimulus help the long term unemployed like me? I have just run out of my Tier II extension. I have worked 30 years and never needed unemployment until now. I am now living off what little saving I have, but that will only last me a month or two. Two kids, mortgage, etc. There just aren't any jobs to be found!

Michelle Singletary: I believe there is help for the unemployed to extend unemployment benefits.

I do hope things get better for you.

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Rome, N.Y. : Hi Michelle, I am a little confused by some articles talking about being able to claim 2007's stimulus tax credit if I was not eligible for the full amount then. I got $300, is that considered partial since $600 was the maximum for a single filer to claim?

Michelle Singletary: Running out of time but go to www.irs.gov.

There is a FAQ for people who didn't get their full stimulus tax credit.

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Arlington, Va.: Hi Michelle, thanks for taking my question and by the way I love your column. I have a quick question about my situation. Things got pretty rough after Christmas. My mom asked me to help pay her rent.. which I was a little reluctant but did I anyways. So I pushed my own bills aside to help. I am currently in debt $2,500 (credit cards, medical bills and unpaid cable bill-no student loans) and just found out my car needs a new catalytic converter (won't pass emissions). I used all of my savings (which wasn't very much) on my daughter's dental surgery prior to Christmas. I thought I could save up after the holidays but it seems like things are getting worse. I know what I need to do: try to save and pay off the debt at the same time. But I get so frustrated because it feels like I take one step forward and two steps back. Any advice, Michelle? Thanks.

Michelle Singletary: You poor dear.

So go back to your budget and see where you can cut. Cell phone, cable, etc.

Can you get another job, even for a little while?

Short of that try not to get down. Things are rough for a whole lot of people.

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Silver Spring: I took the opportunity to check my credit report today--I do it every year in my birth month and was reminded by your article (thank you very much). My credit to debt ration is 6%--I am guessing that it is good. I have about $4000 in credit card debt and a mortgage - nothing else. My goal for this year is to pay all the credit cards off by the middle of the summer. I got a small raise this January and the extra money will go directly towards the credit cards. After I am done paying them off it will go into savings/inventments. Thanks for all you do.

Article Link: Consumers Lose in This Love Triangle (Post, Thursday, February 12, 2009.)

Michelle Singletary: You are welcome.

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Alexandria, Va.: Hope I'm not too late--please comment on the Slate column criticizing Suze Orman...

Michelle Singletary: It was interesting.

You guys should read it.

I will say this whether I like her or not. At least she is getting people -- as I hopefully do - to handle their money better.

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Greenbelt, Md.: To the couple in Upper Marlboro wanting to use equity to pay off credit card debt, DON'T DO IT!!!! I did that a couple years ago and ended up having to sell the house (making very little profits, because I used it all in refi) and moving to an apt. Even with that I still ended up not having enough to pay all the credit card debt, with ultimately resulted in me having to file bankruptcy (which is a longer story). DONT DO IT!

Michelle Singletary: I agree.

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Michelle Singletary: Oh my I looked up and it's 1:14. I'm way over and so many questions.

I'm so sorry if I didn't get to yours. I tried.

But keep reading my column and sign up for the eletter and you may see your question in one of those places.

You guys don't get to see all the questions but know this there are a lot of people in need. A lot of people have a lot of debt.

If you are in the position to help someone, help. I don't mean a hand out. Don't enable people to continue making bad money decisions but there are people who did the right things and now are out of work and struggling.

Help them figure out how to budget if that is your gift.

Share your wealth if you can.

Take care and see you back soon.

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