personal finance

Foreclosure. It seems like half the country is in it and the other half is trying to make a killing on it.

The number of foreclosed homes staggers the imagination and with more adjustable-rate loans about to reset, the end is nowhere in sight. The crisis, however, provides the opportunity to purchase a house that was all but impossible for many to afford in the boom years.

If you missed out on the $8,000 federal tax credit for first-time homebuyers, which is set to expire after Nov. 30, don't despair.

One of two things will probably happen: Congress will extend the credit into next year or, if not, home prices will fall as demand falls off, perhaps by as much as $8,000.

Nothing like a Wall Street rally to pump up investors. Eager to recoup losses from last year's market plunge, many recession-battered consumers could be eyeing the Dow's recent recovery as a chance to dive back in.

But don't take the leap with your eyes closed.

Is it too late for first-time homebuyers to snag the federal government's $8,000 tax credit?

The credit -- intended to boost flagging home sales -- is set to expire Nov. 30. Congress is weighing several proposals to extend the tax break into 2010, but passage remains uncertain.

As lenders cancel or cut limits on credit cards and home equity lines of credit, many consumers are wondering how this affects their credit score.

The short answer: It's never good.

Dear Debt Adviser,

The Federal Housing Administration is getting ready to implement new rules that could, in some cases, make it harder to get a mortgage to buy a condominium unit.

The new rules were supposed to take effect Oct. 1. But the FHA announced in mid-September that it would delay implementation of the new rules until Nov. 2, and that it might modify some of the policies.

Some consumers today are too young to remember layaway, but some stores still offer it or are reviving the old practice as many try to break the buying-on-credit habit.

With the U.S. dollar falling to a 14-month low against an index of other currencies last week, I figured it would be a good time to check in with Michael Hasenstab, manager of the Templeton Global Bond Fund.

Like most foreign funds that don't eliminate currency risk through hedging, this one has benefited from the dollar's recent slide.

Dear Debt Adviser,

I take home $9,000 per month, but pay $2,500 to my credit cards. I can't continue to pay my credit-card bills. I am thinking I might stop paying and try to settle. Will it hurt me that I have gainful employment?

-- Dan

Dear Dan,