Declare your values. Your family may have values about education and religion - or even what brand of soda to drink - but what about your financial values? Is it important for your family to keep up with the Joneses? Or does your family know that money can't buy happiness?

Determine your budget. While some families consider budget a four-letter word, families that are successful with money management know balancing income with expenses is a good thing.

• Understand what you're signing up for. Watch out for terms like introductory rate, no interest, no payments and any combination of these. It's inevitable the terms are going to change. It's just a matter of what will trigger the change. Perhaps after a certain time period, the annual percentage rate (APR ) will shoot up, or if the balance is not paid by a certain time, a penalty will be assessed. In any case, ignoring promotional terms could cost you more than just money; it could affect your credit rating as well.
  
  
• Don't assume everything is standard. Besides the APR for purchases made on credit cards, there are other APRs applied for transactions such as Balance Transfers, Cash Advances, Default APR s and Promotional Periods. This section usually outlines what happens when you're late or over the limit, as well as when promotional offers end.
  
  
• If it sounds too good to be true, chances are there's fine print. Transferring balances to a no- or low-interest rate can be tempting, but watch out for balance transfer fees. Opening new cards and repeatedly transferring balances to avoid paying interest can backfire not only because of balance transfer fees, but it can be minus for your credit score as well.
  
  
• Rules change. The terms and conditions of a credit card are subject to change and very often do. When there is a change, you will receive a notice in the mail, so be on the lookout for account change information. You can opt not to accept the new terms, but generally not without consequences, such as card cancellation.

The good news is that some homeowners are actually benefitting from the current mortgage situation by securing low-rate mortgages and refinancing existing mortgages. According to Alissa Sykes, Mortgage Manager for Sunmark, "Those with good credit may not see any change in their ability to find financing in this market. However, 100% financing may no longer be available. But now is still a great time to buy since mortgage rates and home prices in the Capital Region are both good right now."

For those looking to refinance, Sykes advises considering the term, the interest rate and your future plans to see if it makes sense. "Where we're really seeing homeowners save is when they refinance 30-year mortgages into 15-year terms. The payment may go up a little, but the amount of interest they're saving over the life of the loan is huge."

Sykes cautions those who rely on the equity in their home as their safety net. "We've run into several situations where homes are not appraising for what the owners expect. Many are expecting to see appraisals in line with what they would have sold their home for two years ago. That's simply not the case. Appraisers are much more stringent these days because of stricter government oversight."

For homeowners feeling the pressure of increasing costs or adjustable-rate mortgages, the prospect of stretching already tight budgets even thinner can be overwhelming. If you're in this group, the best thing to do is to take action before your finances get out of control. Start by prioritizing your spending. Besides health care, keeping your home should be a top priority.

Ed August, Director of Better Neighborhoods Inc., says the natural reaction for homeowners who are having difficulty making ends meet is to be in denial. "It's very emotional for people. Sometimes they come here in tears saying ‘I'm losing my house, what can I do?'" says August. "Most people wait too long before addressing it. They may be four or five months behind before they do anything. They need to take action earlier."

The bottom line is that lenders do not want your home and may be able to offer you options to get you through financial difficulties. "The government has really stepped up programs to help struggling homeowners, but to qualify, borrowers can't have missed two payments within the past six months," Sykes says. "So, contact your lender at the first sign you're having problems."

Concerned homeowners may also contact a HUD -approved Housing Counseling Agency, such as Better Neighborhoods Inc., to help them understand the law and the options available to them, to assist in negotiating with their lender and to reorganize their finances.

If you're a potential homebuyer with mediocre to poor credit, financing will be harder to get these days. Many of the Capital District lenders who specialized in financing credit-challenged individuals are no longer in business. There may be some options, though, from higher down payment requirements to special home loan programs to help you get into a home.

If you're looking to buy a home with a lower income, you may find it difficult to find a home in your price range, but there may be programs to help you. "Your best bet is to contact agencies like Better Neighborhoods Inc. to see what programs are available to those with lower incomes or credit issues," advises Sykes.

http://www.balancepro.net/edi/index.aspx †

Be proactive in educating yourself in how to handle financial hardships, as early as possible. Our new financial education partner, Balance, has a step-by-step module "Early Delinquency Intervention: Saving Your Home from Foreclosure" that can help guide you through this difficult process. They also have counselors available to speak with you over the phone.

http://www.hud.gov/foreclosure/index.cfm †

The U.S. Department of Housing and Urban Development is a comprehensive resource on topics related to housing. HUD includes information on how to avoid foreclosure, including links and phone numbers of area HUD-approved Housing Counseling Agencies, which can advise you on your options.

http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea12.shtm †

The Federal Trade Commission is the nation's consumer protection agency. If you're experiencing a situation with your mortgage lender that you believe is deceptive or fraudulent, contact the FTC. They have many resources, including the publication "How to Manage Your Mortgage If Your Lender Closes or Files Bankruptcy" that can help you understand your rights. There is even an online form to file a complaint.

http://www.federalreserve.gov/pubs/foreclosure/default.htm †

The Federal Reserve Board has put together a Foreclosure Related Links list that has lots of helpful information for those who may be having difficulty paying their mortgage.

http://www.better-neighborhoods.org †

A local Homeownership Center and HUD-approved Housing Counseling Agency offering free consultation to new and existing homeowners. A New York State Neighborhood Preservation Company (NPC) dedicated to rebuilding Schenectady neighborhoods through housing revitalization and affordable homeownership.