But when creating a Will it is a good idea to avoid using fixed numbers when leaving gifts of money. That’s because the financial health of your estate can change dramatically over the years – and can also be substantially impacted by your death. You may have a million dollars, for example, the day you die but if you die with unpaid medical bills or taxes then that number will change after your death.

Instead of using numbers such as “I would like to leave $10,000 to John Jones,” it is smarter to use percentages – as in “I would like to leave one percent of the money in my estate to John Jones.” That way the money left behind will be divided as you intended, regardless of how much money you leave. Stipulating a set dollar amount, though, does not allow any flexibility for interpreting your wishes in the event that the money left behind is more or less than you anticipated.

So “I leave 25 percent of my estate to each of my four children” ensures equal distribution. No matter how big or small the pie is, in other words, each one gets a slice worth one fourth of the whole pie. Nobody gets more than their fair share and nobody gets less. But placing a dollar amount might mean that there is not enough to give one-fourth to each child. Or if your estate grows in size the children might be left with only a fraction of the total amount – rather than a full 25 percent.

But meanwhile consumers are defaulting on their credit card payments in record high numbers, and that is costing card companies lost revenues. That’s why right now credit card companies are especially focused on two issues. They want compensate for lost profits first of all, and secondly they want to try to lock in higher rates before Congress has a chance to pass laws that limit how frequently card companies can raise those rates. So over the coming weeks you can expect to see credit card companies significantly boosting the interest rates you pay on balances you carry forward from month to month.

That means that it is more important than ever for you to keep an eye on your card statements and carefully read any notices mailed to you by your credit card issuers. If you spot rate hikes that do not seem fair, don’t be shy about protesting to your bank or credit card company. Many of them will back down as long as you have made payments on time and have not gone over your credit limit. But if you say nothing you might get stuck with a steep rate for the foreseeable future.

But before heading off to foreign countries with nothing but a credit card, be sure that yours works where you are going. The easiest way o do this is to talk to the bank that issued the card. They can tell you what banks in the country you are visiting also service those kinds of cards, for example, and whether yours will work in the ATM machines in the place you are going to be.

Card companies also have special tactics and procedures to help protect you from card or identity theft while traveling. Yours may be able to send you email alerts, for instance, if there is suspicious activity like large purchases on your card. You should also make photocopies of your credit cards – including both the front and back side of each card – for safekeeping. In case you lose your card you will have all the important information on the photocopy. Store one photocopy in a safe place such as the hotel safe, and leave another copy with a trusted friend or family member back home. If you have a problem your friend will have a backup copy of the card and that can speed things up when it is time to cancel a lost card and request that a new one be sent to you.

Many renters have been evicted during our current housing and credit crisis because their landlords went into foreclosure. Under the law tenants do not have to be notified if the landlord goes into foreclosure, and the first that many tenants ever hear about the situation is when they come home to find an eviction notice on their door. Evictions usually happen within a matter of 30 days or so, and that gives tenants very little time to prepare. But if they don’t move by the eviction date the sheriff can come and legally and forcibly put them on the street with all their belongings.
Keep tabs on your landlord’s credit by asking to see copies of recent mortgage payment statements or by visiting the local courthouse to see if anyone has filed legal collection actions against them. If your landlord is in financial trouble he or she may conceal that information from you in order to keep collecting rent. But if there is a foreclosure you may risk losing your security deposits and will then have to come up new deposits and first and last month rent for a new place to live.

Landlords that have nothing to be concerned about should be willing to share copies of their credit report or let you speak to their banker. Or they can show you cancelled checks that verify that they are making their house payments on time. A little extra vigilance may take some effort but it is much better to be safe than sorry as a tenant in today’s chaotic housing market and unpredictable economy.

Before going on a job hunt, it is a good idea to spruce up your credit report – just as you might update your resume. Order copies of your credit history from the three big reporting agencies and review them carefully, looking any mistakes or outdated information that might hurt your credit. Then you can respond to the information and even challenge it if you think it contains errors. Armed with a freshened-up credit report you can go and apply for that dream job without worry, knowing that your good credit reflects well on your ability to also be a responsible and professional employee.

When they make these changes they are not required to first get your permission, so in one sense they are allowed to change the rules of the game in the middle of the game. But the law does mandate that they notify customers of any changes that are made to the account that could affect the terms and costs associate with it. So to comply with the law, lenders mail out notices and announcements that describe their changes in policy. Most people have trouble understanding these written notices because they are filled with legal terminology and clauses that are very complicated.

But instead of junking these notices, it is important that you try to read them and understand whether or not your credit is being limited. When card companies lower your credit limit it makes it easy to accidentally go over your limit. Then they will charge you for going over limit, and that will cost you fees – plus it will get reported on your credit history. Soon your credit score could be lowered, as the vicious cycle snowballs out of control.

To avoid that kind of scenario, keep tabs on your credit card company and bank notices that arrive in the mail, and phone them if you have any questions or cannot understand the notices. Also order copies of your credit report on a regular basis and study them for errors or recent changes. The sooner you discover problems and deal with them, the faster you can solve them without harming your credit. But those who ignore these changes or put off checking on them can be in for a rude surprise and the disappointment and frustration of higher fees and a lower credit rating.

Instead of completely closing your account, it is advisable to instead just pay your balance off and keep the account. You can even destroy the credit card that you carry in your wallet or purse if it makes you feel better, as long as you keep track of the account numbers and monitor the activity in the account. Your card company will keep sending you bills each month, but if you have paid off your account you will not owe anything. Meanwhile, if a lender or bank checks your credit they will see in your credit report that you have credit that you are choosing not to use – and that because of that your credit score is higher than it would be if you had actually closed the account completely.

In fact, even if you are shopping for a mortgage and want to apply to several mortgage companies and banks to find out who will offer you the best interest rate, reconsider your approach. Yes, it is a great idea to browse around and get the best deal – especially when lenders are competing by offering such perks as lower rates or closing fees. But the same principal holds true. The more applications you put out there, the more your credit score is adversely affected.

Experts suggest that instead of applying to multiple lenders, it is better to interview them and ask for written estimates of your loan fees, closing costs, and interest rates. Because rates are constantly changing the lender may be reluctant to put any figures down on paper, but at least talking to them will give you an idea of what they have to offer. Shop around and choose the loan that suits your needs the best. Then apply once – not all over town – and you will likely get the loan you want without risking any lost points on your all-important credit score.

Ways that loans are modified include a variety of creative strategies or repayment plans. The lender may, for example, extend the length of the loan in order to make the average monthly payment smaller. Instead of a 30-year mortgage, for instance, the lender might make it a 40-year mortgage. Lenders will sometimes offer a lower interest rate, which can also lower payments. In extreme circumstances some banks and mortgage companies are even forgiving or wiping out a portion of the principal balance owed on the loan. By reducing what it is owed, the monthly payments go down to a level that can be more easily repaid by the homeowner. The lender sacrifices some profits but does not have to repossess the home, and home foreclosures often wipe out all of the potential profits that a lender had hoped to make.

When considering a loan modification, always seek professional mortgage counseling from a free, government-sponsored agency or a qualified attorney. Many scams involving promises of loan modification – and charging homeowners large amounts of money up-front for such services – are preying on homeowners. Before agreeing to any loan modification assistance always proceed with caution and use only reputable professionals with proven credentials.

That can be accomplished in a number of ways, and the Making Home Affordable program also provides some cash incentives to banks and other lenders who do successful modifications so that foreclosures are avoided.

As a result of a loan modification like those Obama is encouraging, some lenders will agree to extend amortization or payback periods to stretch out the repayment of loans. That lowers the monthly installment payments. They may even cut the balance due on loans, which makes the whole loan smaller and less expensive. In other cases lenders may offer a lower interest rate than the one now attached to the mortgage, to ease the burden of payments and make them more manageable. If the program works as plans it could help hundreds of thousands of people keep their homes and avoid foreclosure.