Jim, it’s been a year since the market started its freefall. I was wondering if the investors you speak with have recovered and interested in stocks again, or still gun shy?

Don’t close your account. According to John Ulzheimer of Credit.com and an expert in credit scores, this is a bad thing. Having used up most of your credit line is almost as bad when it comes to lowering your credit score. Plead your case with a supervisor. Call back two or three times if necessary. Also, make the minimum payment plus a few dollars a standing automatic online payment out of your checking account. Then, earlier in the month you can increase your payment, but if you forget, the automatic payment kicks in and you are saved the late fee and increase in rates.

Personal losses aren’t as easy to write off as business losses, but you can still do that: http://www.irs.gov/taxtopics/tc453.html gives you complete details on how to report it as a capital loss and use it to offset capital gains or a limited amount of ordinary income. Since your loan was for $2,400 you should be able to write it off in one year, in my opinion, but then I’m not your tax advisor.

Qualifying for a conventional loan is going to be a challenge in today’s marketplace. However, there are local government programs that might provide assistance. To see if it’s better to rent versus own, check out this website: http://budurl.com/9lzl.   Check with your county social services office for the kind of special programs I mentioned.