If your debts – not including car loan or house note – are more than you could ever pay even if spread over five years, bankruptcy is something to consider. But don’t take this step lightly. First, changes in the bankruptcy law make it more difficult to file a Chapter 7 bankruptcy in which you give up what assets you have and debts are written off. The new law forces more people to file a Chapter 13 and create a plan to repay debts over three to five years.Get yourself some help.  Paying the minimum on a credit card is no way to get the debt paid off because the interest is getting tacked on every month that the balance isn’t paid in full. Consumer Credit Counseling Services of New Orleans offers pre-filing bankruptcy counseling and can negotiate with creditors on your behalf. The service is available online 24 hours a day at www.cccsbankruptcy.com, or by calling 866-672-2227. You can set up an appointment to visit a CCCS office in person. The main office is Uptown at 1215 Prytania Street but there are several offices in the metro area. A bankruptcy will remain on your credit history for years to come. It means creditors will charge extremely high interest rates for things like financing a car or giving you a credit card.

The current downturn in the stock market could be considered sale on stocks. That means your dividend reinvestment gives you the chance to collect mutual fund shares at a better price than before. If there are funds you still believe will perform well over the long term, this is chance to get more of what will be a good thing.Something to  consider is how your investment mix  should shift in these final five years of your working life. If you are invested through a workplace investment such as a 401(k), see  the mutual fund company offers  an age-based planning help.  
Without a doubt, the end of day stock market report can make your stomach churn. But before you make a decision after hearing "the market was down X points today. . . " look at your own portfolio’s performance. Your personal rate of return might differ from the market’s overall ups and downs if you are diversified well enough to even out the bumps.

Besides a 401(k) there is the IRA, either a Roth or Traditional. The Traditional IRA offers a federal income tax break, depending on your income limits. The contribution limit is the same for both types of IRAs, $5,000 for the 2007 tax year and 2008. For people age 50 and older the IRA contribution limit is $6,000 a year. Starting next year the IRA limit will rise $500 per year. Rather than wait to pump in the maximum savings all at once by the April 15 deadline, consider putting around $417 a month into an IRA to take advantage of price fluctuations through the year. Municipal bonds offer another option and some tax advantages. Finally, you can buy mutual funds that aren’t available in your 401(k). The minimum investments for mutual funds are often lowered or waived for company-sponsored plans, so you’ll need to see how much you need to for an initial investment. When you’re looking at your portfolio, be sure the overall investment mix in your 401(k) and your other investments matches your goals and anticipated retirement timeframe.

Contact the lender where you took out the home improvement loan and see if you can work out something. Over time, the interest you’re paying is what drives the balance, so that’s where you can seek compromise with a lender and possibly get a lower rate. If the home improvement loan is with the same lender as your the original mortgage, you might get more flexibility. Will the bank consolidate the loans and give you a monthly payment that is lower than you’re currently paying for the two loans combined.  I don’t like the idea of switching the debt to a consumer loan of any type because a home equity loan can offer a tax deduction for the interest paid.