In an effort to ward off a deep depression, the Fed dropped its benchmark rate to a record-tying low of 1 percent, and the Bank of England recently slashed Britain's base rate by a record 1.5 percent. Since many credit cards are pegged to the prime rate, which is tied to the fed funds rate, you should expect to see some relief on your annual percentage rates any time now, right?

As property values continue to head south, many people are finding themselves upside-down on home loans and possibly facing foreclosure. A "short sale" can provide an alternative to foreclosure if you're able to negotiate a deal with your mortgage lender to take less than you owe on the loan and consider the mortgage paid in full. Say you owe $400,000, but you can sell your house for $300,000. If the lender allows you to sell and satisfy the loan, you've sold your house short.

Isn't it about time you gained some Credit¢ents? Perhaps you've never had to worry about credit before, but now you're off on your own and it seems like you're bombarded with credit card offers everywhere you go. What should you do? You opened a checking account at the local bank, and they offered you a shiny new piece of plastic. You signed up for a free subway sandwich at student orientation, and much to your surprise a credit card with your name on it appeared in the mail two weeks later.

The economy is hurting and credit markets are in the tank. In fact, it's easy to understand why all the media hype concerning the credit crunch has consumers scared about what the future will hold. So should you close all your credit card accounts, begin stockpiling your paychecks in cash under the mattress, and avoid using credit altogether? That's simply not the solution to the problem.